Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1921-12-21
AMEND AUTO
LICENSE LAW
Present Law Does Not Seem Equit-
able And is Vigorously
Objected to by
Auto Owners.
LAW WILL HAVE
TO BE AMENDED
The Tax is Heavier for the Old
Worn Car Than for the
New One.


A loud cry, reverberating from the
Mississippi to the Missouri and north
and south through all the ATTITUDES
of Iowa, is sure to be heard from
now until the general assembly
amends the present automobile Il
cense law, which is discriminatory
and, therefore, unfair and inequit-
able. These who drafted the law and
put it through to final passage
probably never thought that the
price Of motor cars would drop, but
they did, and the owner Of an au-
tomobile purchased when the COM
modify was at the peak Of produc-
ton cost, finds himself paying
more for his license than his for
tunate neighbor who waited. The
tax, being computed on the purchase
price at 81 for every 800 of the
factory list, is heavier for the old,
worn car than for the new one,
which has the latest improvements.
In some cases this amounts to con-
siderable since prices have dropped
on some cars $1,000 or more. The
owner of an old car that cost $4,000
would pay fiat $40 in excess of his
neighbor who has the same model,
only an improved one, for which
he paid $4,000.
That the law will have to be
amended goes without saying. Any
one can see that it is discriminatory
and that it really does not operate
equitably. All other property that
| is subject to wear and tear and de-
probation in value is listed for tax
purposes at a lower value than its
original cost. Insurance companies
have scale in underwriting motor
cars. A $4,000 car one year old is
rarely insured for more than $1,000
although it may be worth more, but
the Iowa automobile license law
charges a tax rate based on the
original cost, which is by no means
the present value. That feature of
the law might stand, in as much as
it would be fair for all owners of
motor cars, but when it comes to
one owner paying more than an
other, with the man getting the
cheaper rate having the same model
only one more serviceable by virtue
of Improvements and less used, the
general assembly is going to hear
protests from every section of the
state.
If prices had increased, the own
er of the old car would have been
in the more favorable position and
would have paid less in taxes. Con-
sidering the actual depreciation of
his car, the law would have been
more equitable under that circum-
stance than it is now, yet it would
have been discriminatory. The new
car owner would have the same OBJ
lection which the old car owner has
now, the paying of higher pur-
chase price in the first place and
subsequently, heavier tax. A way
out might be found by computing
the tax every year on the prevailing
list prices of the Individual make
of cars. 1t would be quite impos-
sible to determine the real value of
an automobile after use by taking
the time of its service into con-
sideration. One car six months old
may have been driven $4,000 miles
or more; another may not go half
that distance in two years. This
would result in the newer model
having a lower real value than the
old one.
No doubt when the matter is
brought fully to the attention Of the
general assembly, as it surely will
be, the discrimination will be clearl,'
seen. Laws are supposed to be-
and just. This one SEE oe