A new proposal by state Rep. J.R. Riggins, R- Casper, would alter the formula behind the state’s license plate fees, allowing older vehicles to continue to depreciate after the current threshold of six years.
The state’s license plate fee structure is based on the factory sale price of a vehicle, but takes into account its depreciation as well. The state also applies a $30 flat fee to all license plate renewals, which goes to the Wyoming Department of Transportation.
Fees start as high as 60% of a car’s factory value in year one of ownership and drop to 15% by year six. And that’s where it stops, so anything older than six years would still pay the six-year fee.
Under Riggins’ proposal, the fee depreciate two more steps to 10% in year seven of ownership and 5% in year eight.
The representative in a letter to his constituents cites data showing Wyoming drivers own an average of 2.2 vehicles per household and retain those vehicles for up to 13 years.
“Does your car maintain its value as the miles and years stack up?” he asks in a letter to constituents. “Unless it's a 1955 Mercedes-Benz 300 SL Gullwing — that answer is nope!”
“The cost of licensing your 24-year-old rusty Suburban with 240,000 miles is about the same as your 5-year-old mid-sized SUV with 40,000 miles,” he added. “This would result in a 57% decrease in the annual taxes you pay for this 8-year-old vehicle.”
Riggins’s Rule
Riggins told Cowboy State Daily in a Thursday phone call he believes the legislation is needed given the number of aging vehicles on Wyoming’s roads.
“I just hear people say that the money you spend on a license plate of up there in $80, $90, $100, $200 for vehicles that are 25 years old that they don't drive very often, they take to the dump, the cost of that and that depreciation, it just doesn't seem like (the progressive cut) enough to me,” he said.
Riggins said he still drives a 2002 Suburban that he has owned for about 23 years. That vehicle still costs him about $200 annually to register, he said.
Riggins also said he owns three motorcycles, which rack up registration fees despite only being used seasonally.
“A lot of them don't even get driven on highways or anything, and they still cost $80, $90 to license, and in comparison, for how much time to get used, I don't think it's unfair to give owners of these vehicles a little additional break on that tax,” he said.
He called the proposal a win-win for all parties involved, as it does not touch the state’s $30 fee. A forthcoming fiscal note on the proposal will examine the impact on county budgets, which Riggins estimated would be minimal.
Mixed On Fees
For people standing in line at the Laramie County Treasurer’s Office in Cheyenne to renew their license plates Thursday, reaction to Riggins’ proposal was mixed.
Jerry Ocheskey said he’s fine with the current fee structure.
“It seems to drop down every year, so I think it’s adequate as it is,” he said.
Jacob Piel said that his car “is a little older,” so another two steps down would mean he’d pay less.
While Piel said he doesn’t have a problem with what he now pays to renew his license plates, “I wouldn’t complain” to pay less.
For Char Fagundes and Clay Manthey, licensing their vehicles in Wyoming has been a different experience. They moved to the Cowboy State from Wisconsin, which charges a flat $85 for regular cars and trucks.
“That’s what I’m used to,” Manthey said. “It’s flat across the board.”
Fagundes added that she’s “not a fan” of Wyoming charging based on a vehicle’s original sale price.
Because the coming legislative session will primarily focus on balancing the state’s budget, Riggins called on those who are in favor of the measure to reach out to their representatives in the Legislature to generate the two-thirds support bills need during a budget session.
“I just figure if I get it out amongst the public and then let them bend the ears of your other representatives and their counties, maybe you'll get enough votes to get it introduced,” he said. “That's the biggest part of it. I think we have one week to get any bill introduced that's not a committee bill.”
WYDOT, County Cuts
WYDOT spokesperson Doug McGee had little to say about how the bill could impact his agency. As long as the $30 fee remains, the agency wouldn’t be greatly impacted, he said.
“As you can see from the proposal, the $30 state fee remains unchanged,” he wrote via email. “As such, we have no comment.”
WYDOT in recent legislative meetings has warned of a projected $400 million shortfall. Lawmakers have attempted to remedy that by passing a bill this year transferring sales and use taxes on vehicles into the agency’s coffers.
The majority of license plate fees go toward the counties in which the vehicles are registered, posing a potential problem for county budgets, said Campbell County treasurer Rachael Knust while urging caution with getting too aggressive on tax cuts as Wyoming continues to weigh the impact of a 25% exemption to residential property taxes.
“I think we should wait to do anything until we see the results of the tax cuts,” she wrote via email.
Jerimiah Rieman, executive director of the Wyoming County Commissioners Association, said the proposal could impact county budgets, though it isn’t clear how much.
“Representative Riggins' proposal would certainly reduce local jurisdiction funding, I just don't know how much,” he said. “Obtaining and compiling this information will take some time.”
Jackson Walker can be reached at walker@cowboystatedaily.com.
