New Ulm review., 1922-02-01
MOTOR LICENSE
ii . ~. - q. 49, as;ls s.s
Law is PUzZl ZlLE. Il.

FACTORY PRICE REMAINS TAX
BASIS TILL MINIMUM
is REACHED.
TRUCKS FURNISH CoMPUToRs
PLENTY OPPORTUNITY
TO FIGURE.
With Wednesday, February Is,
fixed as the date when the penalty Of
s25 cents a day shall be imposed on all
motor vehicle owners who have by
then failed to obtain their new 1922
state licenses, hundreds Of Minnesota
motorists are clamoring to secure the
necessary tags.
Law Is a Puzzle. 2
Numerous perplexities concerning
the workings Of the auto tax law COM
front the owner Of a motor vehicle, and
it is exceedingly difficult to explain
the seeming inequalities Of the new
statute. For instance, the man who
bought a Ford, sedan in 1920 has ap-
parent reason to question why he
should pay tax Of $3.50 for his two
year-old car, while the owner Of a.1922
model Ford sedan is required to dig up
only $13.13. 5zs E..z
List Price Governs.
OF fcourse, .thelaw provides an answer
to this rather perplexing query, but
this answer contains but little satis-
faction for, the man who owns a car
purchased new during the wartime
kiting of prices, regardless of whether
or not he was the original purchaser.
The factory price sticks to the car
like feas to a dog. At least such is 9
ruling made public by the attorney
generals office recently.
Diagramming the Case.
E. The attorney generals ruling states
that the new motor-vehicle tax in
Minnesota. is based on the list price:
the factory price of the car. The old
Ford sedan, bought in 1920, was listed
at $795, and at two per cent, which
is the tax rate, the. tax amounts to
$3.50. On the other hand, the new
1922 model Ford sedan, just pur-
chased, is listed at $685. factory price,
and two per cent of this is only $13.13
Had there been no fuctuation in the
prices of automobiles, such as struck
the country in 1921, there might not
have been this discrepancy, the motor
ist is informed. The list price might
then have been the same, for the 1920
as for the 1922 model, and the tax con-
sequently the same.
Much of the apparent discrepancy
between the 1921 tax and that: OF 1922
for instance, because the registration
taxes for 1921 were, based on the hist
prices set forth in the Iowa rate book.
This was an emergency rate book, pro-
vided by the Legislature because the
law was passed so late in the year that
there was not time to, get statements
from the manufacturers.
l. u Z. H g q . ~.
f Relief in Sight.
i Hereafter, however, the list price Of
| the model on November 1aof the year
of the inodelis to be taken as the basic
l5priee. In other words, the price of the
| Il92O model would eethe{ manufactur.
er,s statement Of price made on No
yember 1yof that year.. a man who
buys q 1922 model car this month
would file an affidavit to show the
factory price. If the price should
change between now and November /
| 1922, the statement. Of the manu-.
Efacturer on November would be the
basic price on which would be leviec
Ethe tax for the 1928 license. III
s When 1923 rolls around, the mar
downing the 1920 model will be eligible
Ifors 25 per cent reduction. This
would make his tax; Of $3.50 only
ISL. 90. But since the minimum es.
tablished for that size of car, he vii
have to- pay s12. The tax Of $l2 3
Iyear will then remain on his car. a
man owning q larger car and payint
more in tax would be. benefited b,
1.-The further reduction to only SO PEI
Ecent Of the original tax. But the ca
weighing 1000 pounds and over ca1
never be taxed less than Sis q year
THAT is the minimum estab blished un
der the law for automobiles Zig thi
class. Bss tsg II yS7t.,g 1T
Many of the Fords for which License
have been taken, date, back: to 1914
I The fee for these was the $l2 minimum
Il srhnro alsns have hppn nanv n1I;rin