The L'Anse sentinel., 1923-02-09
Gasoline Tar
Registration
BY COLONEL SIDNEY D. WALDoN,
President Detroit, Automobile Club.


value, therefore, is constantly de-
scending one from brand new to the
vanishing point.
The average value throughout this
six years OF normal life Is one-third
Of tho original price. One would
think 1t should be one-half instead OF
one-third, until it is realized that the
greatest depreciation occurs during
the first and second years.
1t is practically impossible to ap'
praise the actual fair value OF every
motor vehicle In the state every year,
and TO take into proper account all OF
the influences that affect its deprecia'
Ton, such as mileage run, daily care,
amount OF overhauling and refinish-
ing. price fluctuations OF similar We
hicles, progress Of the art (making
older types obsolete) ETC., etc. And
so il has from necessity become an
established custom to tax motor
vehicles through registration fees that
are based on weight and horsepower
instead of upon value.
Weight and horsepower bear an in
direct but not a uniform relation to
value. For instance, new Packard
Twin Six represents three times as
much value per pound as new Ford,
or expressed inversely every dollar
spent in buying a Ford obtains three
times as much material by weight as
In Twin Six. To tax the Ford and
the Packard at the same rate per hun.
dred pounds is to impose an Unfair
burden upon the Ford. This, how
ever, can be very easily corrected.
Let us now see bow tax on gaso'
line imposes it's burden upon these
two typical vehicles.
A Packard Twin Six costs approxi
matcly ten times as much as a Ford.
but only uses twice as much fuel per
mile. For every ten dollars that the
Packard man pays, the Ford owner
has to contribute five dollars. Case
line consumption, therefore. bears no
direct relation to value. Gasoline con-
sumption is by no means confined to
motor vehicles. Also forty to forty
five per cent Of the motor vehicle
mileage of this state is made upon city
streets, and SO upon these two counts
It may be dismissed as measure OF
road use, or of highway wear and tear
No law can be framed putting tax
upon gasoline that will not automat-
ically place its heaviest burden upon
the poor and work decidedly in favor
OF the rich.
Here are some Igures for illustra.
ton.
A Ford Costs $4,000.
It's average fair value per year
for six years is $1Sl.00. The pres
ent Michigan state tax is S11.10.
or S.i per cent of the average fair
market value throughout its six
years Of normal life.
Assume that one-cent gasoline
tax upon Ford averages $500
per year. This is 3.S per cent OF
the average value and when add
ed to tho present registration fee.
equals 1872 per cent that must he
paid by the Ford owner to- the
State every year for the six years
OF normal life.
A Packard Twin Six Costs Sss5o.oo.
Its average fair market value
per year for six years is $12S3.00,
The present Michigan state tax is
S2G.15, or per cent OF the aver.
age fair market value for six
years.
Assume that a one.cent gasoline
tax upon II averages $1,000 per
year. This. Is only seven-tenths Of
one per cent OF the average value
and when added to the present
registration fee equals 81 per
cent.
All other vehicles fall into their |
relative positions between these two
extremes.
From the above It is apparent that |
our present registration law imposes |
an annual tax Of S.4FS upon the aver
age fair market value OF the Ford, |
and OF Pc upon the Packard. From
the standpoint of average value, there.
fore, the Ford owner Is paying over
four times as much tax every year as
does the Packard owner. Similarly
q one-cent tax on gasoline means $50
upon the average fair market value
of the Ford, and only seven-tenths OF
one per cent upon the Packard. Again
in this case the Ford owner pays al.
most five and one.half times as much
tax in relation to average value as
the Packard owner does.
One OF the often-heard arguments in
favor OF the gasoline tax is that the
visiting tourist would be made to pay
upon the fuel he uses his share OF i
highway maintenance. Dlsregarding
the value OF the tourist as a money
spender in our midst, the amount col.
lected from him during his short stay
would be relatively Insignificant com.
pared with the unjust busden such a
tax would impose upon the majority
OF our motorists, namely upon those
Of very limited means.
Added. laws mean added complica.
T.