THE TAX MAN COMMETH
States Look to Raise Revenue on the Backs of Antique Vehicle Hobbyists
It's that dreaded time of the year known collectively around the country as tax time. With state coffers depleted, the government in Washington, D.C., isn't the only one that's after your hard-earned money. State governments are increasingly looking at collector and antique cars as a piggy bank they can crack open when they need to feed their bloated budgets. In Michigan, the birthplace of the American automobile industry, collectors and hobbyists take deserved pride in preserving these relics of a bygone era for future generations. It is ironic then, that the state which spawned these historic works of art is now looking to capitalize on their continued existence by increasing taxes and fees on them.
Legislation (HB 5897) introduced this year in the Michigan Legislature threatens to change the $30 registration fee for historic motor vehicles (renewable every 10 years) to an annual fee. Under current Michigan law, the owner of an historic vehicle may also choose to use restored authentic Michigan plates from the same year as the vehicle's model year for a one-time fee of $35. The bill would increase that one-time fee as well, to an annual registration fee of $30. Under the bill, each of the registrations would come up for renewal every year on the vehicle owner's birthday. "Supporters of this bill are ignoring the fact that these older cars are infrequently driven; they are second or third vehicles deserving of reduced registration fees," said SAN Director Ethan Landesman. "On the vehicle registration fee alone, this policy represents a 1,000% fee increase over 10 years."
Other states have joined the parade as well. The SAN has tracked the introduction of a variety of new state bills which seek to raise taxes and fees, create vehicle registration surcharges and increase inspection fees to pay for new projects. States raising money isn't the only concern, though. There has also been an uptick in the number of bills introduced which would negatively impact the ability of enthusiasts to partake in the historic and classic vehicle hobby. The SAN has been actively fighting numerous anti-hobby inoperable vehicle bills that would limit your right to work on cars on private property, scrappage bills that would destroy classic cars and parts, and exhaust system bills that would make restorations dramatically more difficult. Fortunately, we also have some friends in government around the country who are active in supporting the hobby through legislation.
It is important to remain vigilant and informed so that together as a hobby we can continue to create victories over bad legislation that threatens our way of life. To stay up-to-date on all the legislation affecting the car hobby, visit www.SEMASAN.com frequently to stay informed, and protect your passion.
CAUCUS CORNER
Each month Driving Force features members of the State Automotive Enthusiast Leadership Caucus. The SEMA-supported caucus is a bipartisan group of state lawmakers, nearly 400 strong, whose common thread is a love and appreciation for automobiles. Here are its newest members:
Arkansas
Senator Shane Broadway
Representative Allen Kerr
Representative Barbara Nix
Florida
Representative Ed Hooper
Indiana
Senator Travis Holdman
Representative Bill Friend
Representative Nancy Michael
Iowa
Representative Linda Upmeyer
Kansas
Senator Mike Petersen
Kentucky
Representative Tim Couch
Representative Ted Edmonds
Representative Richard Henderson
Representative Ruth Ann Palumbo
Maine
Representative Gary Knight
Representative Linda Sanborn
Maryland
Delegate Wayne Norman
Mississippi
Representative Scott DeLano
South Dakota
Representative Thomas Brunner
Virginia
Delegate Ron Villanueva
Washington
Senator Jim Honeyford
Representative Jan Angel
Representative Tom Campbell
Representative Marcie Maxwell