Illinois
Related: About this forumSurprised to find Illinois fee and tax structures to be so
regressive. It cost me, a senior, $301 for tags and title transfer today. In Arkansas, it would have been
$10 for title transfer, $17 for license plates, and about $80 for personal property tax. The yearly tax goes down as the car ages.
Sure hope they get the progressive income tax passed.
634-5789
(4,284 posts)MichMan
(13,160 posts)Are there any states that have progressive taxation for things like motor vehicle fees?
sinkingfeeling
(52,989 posts)states fees are based on weight of the vehicle.
MichMan
(13,160 posts)ProfessorGAC
(69,860 posts)In tiers.
People that buy $125,000 cars are likely those same people.
We have much higher than normal income in retirement, and we would be foolish to drop an eighth of a million a car.
The tags could go down each year based on FMV, but the average over x years (10?) would be at least break even.
Wealthy people replacing cars every 3 years never get those last 7 years of declining cost. So, they're paying a higher rate of a higher rate. Sounds confiscatory, but it's not, because it's an overall tiny fraction of income. Too small to cause harm.
The FMV of the cars could be tiered. $2,000-12,000/$12,000-24,000, etc.
Now, someone of modest means getting a great job opportunity that's 30-40% would be paying based on the value of the car, not their income. Eventually, that better income leads to enough $ for a better car, and then their tag price goes up. Gives them a short term reprieve.
I suppose very wealthy people driving a 10 year old Town&Country or Focus would fall through the cracks. But, I'm guessing there aren't many of those.
I thought of this a while ago because it seems easier to regulate & even more progressive.
jimfields33
(18,837 posts)But then 38 dollars a year. Not bad.
Thekaspervote
(34,643 posts)Cadfael
(1,342 posts)From NBC Chicago at
https://www.nbcchicago.com/news/local/fee-hike-a-pain-for-electric-car-owners/2161425/
Electric vehicle owners in Illinois save big on gas money and car maintenance, but registering their rides for 2020 will come with a price hike.
The Illinois Secretary of States office recently notified electric vehicle owners by mail that beginning January 1, 2020, the yearly base registration fee for electric vehicle or EL plates would be increasing to $251 annually. Registration fees for the EL plates previously cost $17.50 per year and were renewable every two years.
MichMan
(13,160 posts)Electric vehicles drive on the same roads as everyone else.