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FOR IMMEDIATE RELEASE August 27, 2009
NEWS FROM: Directors Office 09-011

Governmental Services Tax hike begins Sept. 1, notices now on postcards
SB 429 authorized the tax hike, postcards save money

Nevada motorists will pay more to register their vehicles after September 1 due to changes enacted by the 2009 Legislature. The Legislature's Senate Bill 429 changed the yearly depreciation used to calculate vehicle taxes. The result is an increase in the Governmental Services Taxes (GST) portion of the registration fees. The Basic Registration Fee, $33 for most private vehicles, remains unchanged.

The increase is most noticeable for vehicles that are nine years old and older. The amount of the Governmental Services Taxes will actually rise on these vehicles. Owners of vehicles that are two to eight years old will find they are paying the same amount this year as last year. Their fees will go down in the following year. Owners of vehicles that are one year old will see their fees go down by less than they would have otherwise.

SB 429 decreased the annual depreciation on vehicles by 10 percent. For example, a vehicle that is one year old will be taxed based on 95 percent of its original value instead of the previous 85 percent. The value depreciates 10 percent each year after that until reaching the minimum at nine years, which is now 15 percent instead of five. The bill also raises the minimum GST from $6 to $16.

Governmental Services Tax revenue is distributed to the county and school district in which the registered owner lives. Most of the additional revenue raised under SB 429, approximately $50 million per year, will go to the state’s general fund.

Another change is the department is now using postcards to notify motorists that their vehicle registration is due for renewal. The department will save $371,000 annually by using postcards instead of stuffed envelopes. The DMV budget was cut by that amount.

One reason for the decision to move to postcards was that the number of motorists renewing vehicle registrations by mail has decreased over the years, thanks to the department’s alternate services. Registrations can be renewed online at www.dmvnv.com, using the department’s self-service kiosks and at many emission stations. Only about one in five eligible motorists chooses to renew by mail.

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Sample Changes in Governmental Services Taxes

Vehicle Age

Prior to SB 429

SB 429 Schedule

New vehicle

$280

$280

1 Year Old

$238

$266

5 Years Old

$126

$154

6 Years Old

$98

$126

9 Years or Older

$14

$42

Figures are based on a vehicle with a Manufacturer’s Suggested Retail Price of $20,000.

See Nevada Vehicle Registration Fees and Taxes on the DMV website for more details on how taxes and total registration fees are calculated.

Links

Nevada Vehicle Registration Fees and Taxes

Vehicle Registration Renewal Options

Senate Bill 429 History

Senate Bill 429 Bill Text (PDF)