Car Tag, Excise Tax Cut Clears Committee

The Senate Finance Committee has approved legislation which would slash car tag fees and excise taxes, delivering significant savings to Oklahoma motorists. SB 1 by Senator Lewis Long was approved on a 12-2 vote today.

"I think Oklahomans are paying too much for their car tags and deserve abreak. That¹s what I¹m trying to give them," said Senator Long.

SB 1 will reduce tag renewal or "registration" fees, in addition to cutting the excise tax on new and used car purchases. The proposed changes in the state's tag and tax formula will also provide additional savings for Oklahoma senior citizens.

"The state has been gouging motorists on car tags for too long. We need to deliver some relief to working Oklahomans and their families," said Long.

Under the new formula, the savings on tag and excise fees would vary from vehicle to vehicle, depending on its value and other factors. Ultimately, costs to Oklahoma motorists would be cut by at least one-third in some cases and as much as one-half in others. For example:

• Someone buying a new car costing $20,000 with a $4,500 trade-in would ultimately save $466 on tags and taxes, a savings of 33%;
  
• Someone buying a used car costing $10,000 with a $2,500 trade-in would ultimately save $255 or 42%;
  
  
• A senior citizen buying a car costing $20,000 with a $4,500 trade-in would ultimately save $766 or 54%.

"Oklahoma taxpayers will get a pretty big chunk of savings, especially senior citizens. It¹ll make rates more reasonable and closer in line with what other states are charging," said Senator Long.

The next stop for SB 1 is the full Senate.