New Nebraska law ups taxes on pricey vehicles

| 4/18/2006

Nebraska Gov. Dave Heineman has signed a bill into law increasing vehicle taxes for a few hundred people in the state – and this time it’s not truckers. The higher tax is expected to net the state about $30,000 more annually, The Associated Press reported.

The new law increases taxes on passenger vehicles and light trucks worth more than $80,000. For top-of-the-line vehicles, the tax will increase $40 for every $2,000 in value.

The $1,160 tax for the largest trucks will not be changed.

Existing Nebraska law requires all passenger vehicles with a manufacturer’s suggested retail price of more than $78,000 to be taxed at $1,460 the first year. The tax decreases over time. Vehicles more than 14 years old are not taxed.

The new law, previously LB248, gradually increases the tax, until it reaches $1,900 for vehicles with a price tag over $100,000. There also will be a slight decrease in taxes for cars and light trucks valued at less than $8,000.

Motorcycles also are included in the same taxing schedule as cars and light trucks.