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Regular Session, 2012
SENATE CONCURRENT RESOLUTI ON NO. 68
BY SENATOR BROOME
MOTOR VEHICLES. Requests DPS&C, office of motor vehicles, to study the impact of
collecting the motor vehicle license tax on private passenger vehicles based upon the
vehicle's fair market value at the time of each renewal.
A CONCURRENT RESOLUTI ON1
To urge and request the Department of Public Safety and Corrections, office of motor2
vehicles, to study the impact of collecting the motor vehicle license tax on private3
passenger vehicles based upon the vehicle's fair market value at the time of each4
renewal.5
WHEREAS, Article VII, Section 5 of the Constitution of Louisiana requires the6
legislature to impose an annual license tax of not more than one dollar per each one thousand7
dollars of the "actual value" of automobiles for private use, as provided by law, except that8
such annual license tax shall not be less than ten dollars per automobile for private use; and9
WHEREAS, R.S. 47:463(A)(1) provides for collection of the annual motor vehicle10
license tax each two years in advance on each passenger-carrying automobile, van, low-11
speed vehicle, or other motor vehicle carrying only persons and their personal effects12
exclusively in amounts fixed by the following schedule:13
(a) For an automobile having an actual value of ten thousand dollars or less,14
the annual license tax shall be ten dollars; and15
(b) For an automobile having an actual value of greater than ten thousand16
dollars, the annual license tax shall be the base tax of ten dollars plus an additional17
tax of one dollar per each one thousand dollars of "actual value" above ten thousand18 SCR NO. 68
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dollars; and1
WHEREAS, R.S. 47:463(A)(2) provides that the "actual cash value" of each private2
passenger vehicle shall be determined as of the time of purchase or first renewal according3
to criteria established by the commissioner, and the tax shall be based on such "actual value"4
for each renewal thereafter; and5
WHEREAS, the office of motor vehicles collects the motor vehicle license tax on6
each vehicle based on the "actual value" of the vehicle determined as of the time of purchase7
and initial registration of each automobile as provided by its regulations; and8
WHEREAS, the "actual value" of an automobile depreciates approximately fifteen9
per cent per year, or thirty percent per two-year renewal period; and10
WHEREAS, currently, such depreciation of an automobile is not considered when11
the office of motor vehicles determines the "actual value" upon renewal of registration and12
collection of the motor vehicle license tax each two years; and13
WHEREAS, collection of the motor vehicle license tax based on the depreciated14
"actual value" of an automobile upon each two-year renewal will likely reduce total revenues15
collected; and16
WHEREAS, such collections are currently deposited into the Transportation Trust17
Fund and into the State Highway Improvement Fund No. 2.18
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby19
urge and request the Department of Public Safety and Corrections, office of motor vehicles,20
to study the impact of assessing the motor vehicle license tax on private passenger vehicles21
based upon the vehicle's fair market value at the time of each renewal, and to submit a22
written report of its findings and recommendations to the Senate and House committees on23
transportation, highways, and public works, not later than March 1, 2013.24
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the25
deputy secretary of the Department of Public Safety and Corrections and to the26
commissioner of the office of motor vehicles.27 SCR NO. 68
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Sharon F. Lyles.
DIGEST
Broome SCR No.
Requests the Department of Public Safety and Corrections, office of motor vehicles, to study
the impact of calculating the motor vehicle license tax on private passenger vehicles based
upon the vehicle's fair market value at the time of each renewal, and to submit a written
report of its findings and recommendations to the Senate and House committees on
transportation, highways, and public works, not later than March 1, 2013.