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Tax assessor, residents keep close eye on car tag debate
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| By: ADAM NORTHAM, DAILY LEADER Staff Writer |
April 07, 2009 |
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Lincoln County Tax Assessor Nancy Jordan is quite familiar with the potential consequences of an under-funded car tag credit program, and not just because she heads up the tax office.
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If the Legislature fails to plug the Legislative Tag Credit Program's $25 million shortfall by the state tax commission's June 1 deadline, tax assessors - like many other vehicle owners - will see "dramatic" increases in car tag prices.
As a county resident, it costs Jordan $258.06 to purchase a tag for her 2008 Chevrolet Impala with credits from car tag program.
If no credit is forthcoming, however, her tag price will increase to $535.37. If Jordan lived in the Brookhaven Separate School District, her Impala's tag would cost $308.17 with the credit and $585.48 without.
But the real financial burden will fall on those living within the city limits, where the millage rate - which is used to configure tag prices - is highest. In addition to county and city school district property taxes, Brookhaven residents also pay property taxes to support city government operations.
A 2008 Chevrolet Tahoe, an SUV popular among Brookhavenites, is already an expensive vehicle to buy a tag for, with the price standing at $761.29. With no assistance from the credit program, the Tahoe's tag cost will increase to four digits at $1,210.75.
"It would really be a burden on the people of Lincoln County for this to happen, and we're hoping it won't," Jordan said. "But if additional funds are not provided, we face higher car tags in July."
Jordan said the car tag credit program may not shut down completely, but instead send a lesser rebate amount to counties. That option would still be a costly one for Lincoln County, she said, which issues around 37,000 tags per year and absorbs approximately $260,000 in car tag credit funds each month, for an annual total of more than $3 million.
"I've worked here when we didn't get legislative credit, but times weren't as hard then," Jordan said. "It would be awful for the taxpayer to have this taken away now.
"Everybody needs to contact their legislators and let them know how they feel about it," she continued. "Hopefully, they can work something out to keep us from losing it."
The program isn't lost, but recent events in the Legislature are making tax assessors and vehicle owners nervous. Lawmakers adjourned for at least 30 days last week with no funding solution, leaving only 30 days to fix the problem when they return in early May.
Senators want to use revenue from a proposed cigarette tax increase to plug the program, but House negotiators say that method won't generate the necessary funds in time for the tax commission deadline, favoring a deficit appropriation instead.
The credit program's inadequacy is tied directly to the state's economy. The program is funded by new car sales, which are down dramatically.
The possibility of increased tag prices is not sitting well with county residents, especially those who are still adjusting to the state's comparatively high prices.
Harlon Jordan, who moved to the county from Louisiana in 2000, joked he might have to fire up his "hay-burner, Ole Betsy" - a mule and wagon.
"It's almost $300 just to drive it for one year," he said of his 2009 Dodge Ram, which he purchased a new tag for Tuesday morning for $282. "It's just a half-ton truck. I could understand it if it was a big one, a commercial truck to haul stuff in. But this just hauls me around."
Another Louisiana transplant, Mike Reeds, is hoping his vehicle depreciates if the credit program breaks down.
"By then it won't be new, hopefully," he said.
Louis Delaughter doesn't like the idea of buying tags for his 2006 Chevrolet truck, a vehicle type that generally holds a high value for a long time. Looking at his tag receipt, he estimated a no-credit price of close to $400.
"It's a big deal - it's taking money out of my pocket," he said.
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©The Daily Leader 2009
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