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Regular Session, 2012 ENROLLED
SENATE CONCURRENT RESOLUTI ON NO. 68
BY SENATOR BROOME
A CONCURRENT RESOLUTI ON
To urge and request the Department of Public Safety and Corrections, 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.
WHEREAS, Article VII, Section 5 of the Constitution of Louisiana requires the
legislature to impose an annual license tax of not more than one dollar per each one thousand
dollars of the "actual value" of automobiles for private use, as provided by law, except that
such annual license tax shall not be less than ten dollars per automobile for private use; and
WHEREAS, R.S. 47:463(A)(1) provides for collection of the annual motor vehicle
license tax each two years in advance on each passenger-carrying automobile, van, low-
speed vehicle, or other motor vehicle carrying only persons and their personal effects
exclusively in amounts fixed by the following schedule:
(a) For an automobile having an actual value of ten thousand dollars or less,
the annual license tax shall be ten dollars; and
(b) For an automobile having an actual value of greater than ten thousand
dollars, the annual license tax shall be the base tax of ten dollars plus an additional
tax of one dollar per each one thousand dollars of "actual value" above ten thousand
dollars; and
WHEREAS, R.S. 47:463(A)(2) provides that the "actual cash value" of each private
passenger vehicle shall be determined as of the time of purchase or first renewal according
to criteria established by the commissioner, and the tax shall be based on such "actual value"
for each renewal thereafter; and
WHEREAS, the office of motor vehicles collects the motor vehicle license tax on
each vehicle based on the "actual value" of the vehicle determined as of the time of purchase
and initial registration of each automobile as provided by its regulations; and
WHEREAS, the "actual value" of an automobile depreciates approximately fifteen
per cent per year, or thirty percent per two-year renewal period; and SCR NO. 68 ENROLLED
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WHEREAS, currently, such depreciation of an automobile is not considered when
the office of motor vehicles determines the "actual value" upon renewal of registration and
collection of the motor vehicle license tax each two years; and
WHEREAS, collection of the motor vehicle license tax based on the depreciated
"actual value" of an automobile upon each two-year renewal will likely reduce total revenues
collected; and
WHEREAS, such collections are currently deposited into the Transportation Trust
Fund and into the State Highway Improvement Fund No. 2.
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
urge and request the Department of Public Safety and Corrections, office of motor vehicles,
to study the impact of assessing 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.
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
deputy secretary of the Department of Public Safety and Corrections and to the
commissioner of the office of motor vehicles.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES