New Ulm review., 1921-05-18
new MOTOR TAX
LAW EXPLAINED
FIGURES SHOW SMALL AUTO
ASSESSED HIGHER THAN
LARGE MACHINE.
MINIMUM TAX ON FORMER IS
SIP, AS AGAINST SIS ON
THE LATTER.

Automobile owners OF Minnesota
are preparing to pay taxes on thei
cars to the state and help the gooe
roads program, instead of to the
county or city for general taxes, and
as result, are curious to learn what
the state taxation bill, passed by the
last Legislature, really means.
For everyone, except the owner oi
low-priced auto, the new law means
that he must pay two per cent of the
full list price while the car is less than
three years old, two per cent of three
fourths of the list price while it is be-
tween three and five years old, and two
per cent of one-half of the list price
thereafter. The year of the model is
designated as the first year, of the
cars life.
Ford Owners Hit Hard.
The owner of Ford or other low
priced car is hit by minimum tax of
$12 per year, regardless of the age of his
machine. No matter how far below
$l2 the two per cent tax would figure,
he must pay $12 per year just the
same during the entire life of his car.
Nonpartisan Leaguers and Labor men
in the House and Senate fought this
provision and tried their utmost to
secure and equalization of the motor
tax burden by raising the percentage
OF taxes or lowering the minimum,
but they failed to obtain the desired
relief
Illustrating the Point.
The following figures will illustrate
the scale of taxes and how they bear
on the car owner. The minimum tax
for cars over 2,0O0 pounds, it should
be understood, is S15, and it assumed
that the average car costing $1,000
or more weighs over 1000 pounds.
On autos costing $500, the two per
cent tax for the first year would figure
up to $40; for the fourth year, $3.50;
for the sixth year and thereafter, SIS,
but the minimum tax remains SIP for
each year, Notwithstanding. On the
other hand, cars costing 81 900 would
be taxed 500 the first year and SIS
each subsequent year. The fourth
year tax would figure up to this sum,
while for the sixth and subsequent
years it would figure up to $40. The
same minimum tax-$15-also ap-
plies to all higher priced machines
costing up to $4,000. On'a $4,000 car
the two per cent tax for the first year
would be $40; for the fourth year, $50,
and for the sixth and each subsequent
year, $40. The tax on $4,000 auto
would be figured on a basis of double
the taxes on $1,000 car, while that
on $4,000 machine is double that of a
$4,000 one, amounting to $120 for the
first year; $50 for the fourth year, and
$50 per annum for the sixth and each
succeeding year.
Minimum Equals Per Cent.
This, although the law rates the
$500 car during the fourth and fifth
years of its life as being worth only
1915, and during the rest of it's useful
ness at $3.50, the owner continues to
pay the $12 minimum tax every year
as long as the machine is in his pos
session. This amount equals "a pei
cent during the first three years Of
the cars life; 3.4 per cent during the
fourth and fifth years, and 4.8 per cent
of the legal value of the car for the
balance of it's life. Meanwhile, the
owners of high-priced cars never pay
more than two per cent.
Wheelage Tax Extra.
The Legislature authorized mum
cipalities to levy wheelage taxes o
not more than one-ffth of the STATE
taxes, on all vehicles using the streets
Should Minneapolis exercise thi
power, the Ford owner would pay
about $40 extra to the city and tn,
owner of the car costing $4,000 woult
pay about $24 extra.
Ira ctors Are Exempt.
The new law exempts agriculture
tractors and the small trailers used b.
campers 1t places on trucks ant
tractors in general two per cent tax
and on trailers, ETC., tax of one pc
cent. The minimum on all truck
and tractors of less than two tons
carrying capacity is SIS; between tw
and four tons, $40, and on four tons Q
more, $50. This creates a like in
justice to the owner of small truck
the farmer who uses his truck to trans
port products to market, the sma
business man and others.