A Republican senator will try anew to exempt senior citizens eligible for property tax protection from paying a vehicle license tax for one vehicle.
The exemption does not apply to motor homes under a bill filed by Sen. Jay Tibshraeny, R-21.
Tibshraeny had introduced a similar legislation last session.
Asked what the chances are of S1020 getting through at a time when the state is facing nearly a $1 billion deficit, Tibshraeny said his understanding is that his bill would not be a cost to the general fund, or if it is, the impact would be minimal. There are approximately 5 million vehicles registered in the state, and the average annual vehicle license tax (VLT) is about $180.
A legislative analysis of last session’s bill (S1031) said fiscal impact cannot be determined because data on vehicle owners who qualify for the senior property valuation freeze are lacking. But using a set of “simplifying assumptions,” the analysis said the bill might reduce VLT collections by about $4.5 million in FY 2008 — a loss of $1 million to the Highway User Revenue Fund and $3.5 million to local jurisdictions.
The analysis said the bill would have no impact on the general fund.
In 2006, Tibshraeny introduced a similar measure, which comfortably passed in the Senate but was ultimately rejected by House members.
This year, the legislation did not reach the Senate floor.
“One of the biggest complaints I get from senior citizens and all citizens is the VLT tax that we have, and so this bill would offer relief to senior citizens,” Tibshraeny said.