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Vehicle registration enforcement nets $800,000 for state

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BY NANCY HICKS / Lincoln Journal Star

Wednesday, Jul 16, 2008 - 05:44:22 pm CDT

Nebraska counties have collected more than $853,000 in taxes and fees from 2,518 residents who had their vehicles illegally registered in other states.

The collections were a response to 10,200 letters the state sent to Nebraskans believed to have registered vehicles illegally in Iowa or South Dakota.

The state is focusing efforts on the “pervasive and widespread practice of circumventing Nebraska taxes and fees,” said Col. Bryan Tuma, superintendent of the Nebraska State Patrol.

Story Photo
(LJS File)

Many on the list had bought high-priced vehicles or motor homes and registered them in neighboring states with lower taxes and fees, said Beverly Neth, director of the Department of Motor Vehicles.

In one case, owners of a 2007 Fiesta motor home owed the state $6,602 in sales tax and more than $1,900 for two years’ worth of fees and other taxes, Neth said.

Another owner owed more than $26,000 in taxes and fees on two RVs.

The state departments of Motor Vehicles and Revenue estimate $11 million in taxes and fees is lost each year by people who register vehicles illegally in other states.

To find alleged violators, Nebraska motor vehicles staff matched Social Security numbers on Iowa and South Dakota registration databases with driver’s license information here, Neth said.

Tuma and Neth said about 2,075 of the letters sent out were returned as undeliverable; 2,096 letters based on Iowa registrations and 422 were based on South Dakota registrations were in error, or there was a legitimate reason for the situation.

Some errors related to incorrect Social Security numbers in Iowa’s database. But a few of the people who were sent letters were people whose Social Security numbers were being used by someone else, said Neth.

She encouraged anyone who received a letter where there was a Social Security error to contact the Iowa Department of Transportation at (515) 237-3110 or ovsmail@dot.iowa.gov.

Now, the Nebraska patrol will focus on 3,800 Nebraskans whose names remain on the list of potential law violators.

In determining what cases to pursue, the patrol will consider such factors as owning multiple vehicles, duration of registration elsewhere, the dollar amount and past criminal activity, Tuma said.

The agencies are considering similar searches with other states in which Nebraskans may be illegally registering vehicles.

South Dakota has no residency requirement for vehicle registration, but people who registered cars and trucks in Iowa had to give false addresses to do so, Neth said.

Anyone who lives in Nebraska for 30 days or more is required to register and license their vehicles here, state Tax Commissioner Doug Ewald said. Nonresidents who work in the state are also required to register vehicles here.

Reach Nancy Hicks at 473-7250 or nhicks@journalstar.com.


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Galen wrote on July 16, 2008 10:08 am:
" Well - LOWER THE FEES AND TAXES! You already lose $11 million a year, maybe if you lowered the ante, then you'd gain some of it back. "

 New to Lincoln wrote on July 16, 2008 10:30 am:
" If you want to enforce something that is illegal try picking up all of the illegal aliens that are in this state. I have found 4 different familys of them here in Lincoln and have called LPD and the state patrol. The results = nothing. "

 Lee Lamson wrote on July 16, 2008 10:46 am:
" Nebraska vehicle registration is EXPENSIVE. I drive a 2004 Chevy Impala and had called the Nebraska DMV for an estimate as I am moving to Lincoln from Denver. I was quoted $350 for the first year and not less than $300 the second year. I last paid $138 in Colorado. I can't say I blame anyone who would register in another state.Moving to Nebraska I have 30 days to register my vehicle. With a major move from out of state and all else that has to be done to move in, 30 days is really pushing the limit. I left Nebraska 21 years ago and I can now see nothing has changed. With the current economey what doe's Nebraska do for you? "

 Heres a thought wrote on July 16, 2008 11:12 am:
" Let's try reducing the cost of wheel tax and registration costs in Nebraska. It's way too high. Not only is it ridiculous to license your car in this state, it is even ridiculous to license my boat trailer. The money we pay for licensing is out of control. When you can go to S.D. and pay 20 dollars regardless of what type of car you drive, it only makes sense to try and license there if you own property in that state. "

 me wrote on July 16, 2008 11:22 am:
" how many people live here in nebraska that have kansas plates? why didnt they check those also? fair is fair. "

 good.......... wrote on July 16, 2008 11:31 am:
" now lower the vehicle taxes "

 Nelson Ha-Ha wrote on July 16, 2008 11:39 am:
" The arrests were important, because they sent a message that was carried in every local and state news medium. Most of the tax evaders would melt if they ever had to spend even one night in jail, so as soon as they realized that they might get arrested, they got terrified and did what they should have done in the first place. "

 Dano wrote on July 16, 2008 11:41 am:
" There is a 7% recovery. Only another 93% more to go. Better get cracking. "

 so.... wrote on July 16, 2008 11:41 am:
" So, what will you do now to collect from the other 7,500 who may not be registered correctly? Time to ante up folks like the rest of the law abiding citizens do. "

 JB wrote on July 16, 2008 11:41 am:
" Yet another reason Iowa is better then Nebraska. "

 Concerned Neighbor wrote on July 16, 2008 11:47 am:
" I have turned in my neighbor several times and they tell the police they just moved here.
The funny thing is that they have 2 vehicles registered out of state and have lived at the same address for over 2 years.
How do I go about getting this taken care of? "

 Other side wrote on July 16, 2008 11:47 am:
" Maybe if people actually registered here THEN they could lower the taxes. "

 to heres a thought wrote on July 16, 2008 12:05 pm:
" Don't let them fool you... not every county has the wheel tax. Which is stupid. If we have to pay it in Lancaster county, we should have to pay it everywhere in the state. Argh. "

 NE native in TX wrote on July 16, 2008 12:23 pm:
" I have been away from NE for 12 years now. Periodically I think about returning to live and raise my young family and this is something high on the list of cons for several reasons. When I visit I notice a large difference, btwn TX and NE, in the number of older (5+ yr) vehicles still in use and wonder if such high priced registration fees don't contribute. If so, congratulations to the state law makers for endlessly maintaining a run down appearance and no doubt adding to a national pollution problem. TX registration ranges from about $50-$80 anually, whether it's a Ford or a Ferrari. In NE you buy a $30K vehicle and you basically get to make 13 vehicle payments per year. Not good. Could someone work to rearrange this taxing scheme. Maybe significantly reduce the vehicle registration fees, and raise the sales tax to off set (the difference has to come from somewhere). This would spread the cost impact out, people may tend to buy a nicer (higher price) vehicle more often, improve appearances, and possibly help get a few natives to return. Now Iowa has NE on income from casinos and license plates, funny. Oh, and don't state troopers have better ways to serve? It's
a frustrating topic. "

 Nina wrote on July 16, 2008 12:24 pm:
" What a windfall! Yes, Nebraska is the most expensive place to license in the midwest. Another problem is that apparently, counties vary in their interpretations of DMV rules regarding titles. The way a large Lancaster County dealer filled out the title didn't fly with our local county, prompting another trip to the county seat and another missed half-day of work at my own expense. Lancaster County accepted hundreds of this dealer's titles written in the same manner, just fine each year. This needs to be remedied, to accommodate reasonable business practices that serve the public. "

 John wrote on July 16, 2008 12:54 pm:
" Money for NE roads has to come from somewhere. If the taxes on vehicle registration were lowered, the slack would only need to be picked up elsewhere. With that in mind, I would support raising the taxes on vehicles in order to complete much needed NDOR projects. "

 Lets be productive wrote on July 16, 2008 1:03 pm:
" Instead of complaining about how high our fees and taxes are (fwiw, I agree they are high, I don't like paying them either), perhaps people should get involved with their gov't and elected representatives to develop alternate means of funding for the roads. Most states have lower fees and taxes because they either use toll booths (too late to put them on I-80 per Fed. law), rely on revenue from gambling, or depend on revenue from tourism. We are currently 0 for 3 in these realms, thus we have to pay higher taxes to maintain our roads.
Stop complaining and be productive. Too many people wait for "someone else" to do things for them "

 Outside the Box wrote on July 16, 2008 1:17 pm:
" I enjoy the rantings of the "anti-tax" crowd on these boards. Their notion of dismissing tax evasion because the tax is considered "too high" is hysterical.

When people don't pay taxes, government services cannot be fully supported. If the tax amount is too high, work to get the amount reduced. Regardless, there is no excuse for condoning and enabling tax evaders to steal from those of us to pay taxes. "

 ALB wrote on July 16, 2008 1:20 pm:
" Lancaster Co. does not have wheel tax...only Lincoln. "

 Rob wrote on July 16, 2008 1:50 pm:
" As usual NE over taxes. They aren't very smart in the Legislature. All our brain power has left the state. We have a car that is 8 years old.
Like to get another one but the taxes. We should have signs up at every
entrance to the state. WELCOME TO THE TAXATION STATE. "

 Debra wrote on July 16, 2008 1:50 pm:
" As a life-long resident of Nebraska, I pay my vehicle registration costs as required by law. Do I like spending that much? No. But it's the law. If you really don't like it, MOVE to a different state! Trying to justify breaking the law simply because it's cheaper in surrounding states is ridiculous. If everything's so peachy in the other states, move there and LEGALLY pay their costs. Otherwise, buck up and pay up. If you really feel strongly about reducing the cost of vehicle registration, start a petition drive or something to push a legal solution, for heaven's sake! "

 And now wrote on July 16, 2008 2:11 pm:
" do something about all the unregistered cars on the road. Every time I'm out I see at least 3 cars with no plates, no in-transits, and most likely no insurance. Go after these guys also! "

 Keep looking wrote on July 16, 2008 2:32 pm:
" Wish they would start looking into the people that register in Kansas and Missouri too! "

 Gordon wrote on July 16, 2008 2:34 pm:
" In Maryland, I pay $132 and we renew EVERY TWO YEARS on my 2004 car valued at $9,000. That's right; $66/Year. We also don't change plates every 3-4 years either. In Lincoln, I would be paying $200 each year for the same car. Don't use the population argument. Maryland's state population is not that big. The sales tax is also 5.00%. "

 Huh wrote on July 16, 2008 2:35 pm:
" I would say recovering $850,000 in lost revenue is definitely resources put to good use for NSP. That is like saying law enforcment shouldn't investigate white collar crimes since no violence is involved in them. "

 With our wrote on July 16, 2008 2:47 pm:
" assinine property taxes and registration fees it is no wonder! Do you know how many out of state kids come here for college and leave as soon as they graduate? And how can you blame them! This state is so backwards it isn't even funny. And that will be about 1,500 less students coming here next year. Good thinking! "

 Nina wrote on July 16, 2008 2:50 pm:
" 'And Now' must realize that if a vehicle is purchased from a private party other than a registered auto dealer, no 'in transit' sign is to be used. Proof of purchase and insurance must be in vehicle, and these people have 30 days to license, just as if they had bought the auto from a dealer. Furthermore, cars without plates are much more prone to being stopped by the law, to have the above necessities checked. So it's not a crime to drive a vehicle with no plates and no 'in transit' sign. "

 sean wrote on July 16, 2008 2:56 pm:
" I got one of those letters. I live in Lincoln for three months out of the year. The rest(9 months) I live in Missouri. So they wanted me to registere the car in Nebraska. "

 kent wrote on July 16, 2008 3:17 pm:
" I agree that it IS wrong to go to another state for this because it is against the law. So with that being said...

Considering the large number that do it I would think there is something to be said by it. These people knew it was illegal beforehand and knew the penalties. It was/is in poor judgement to do it but they still did. Would they have stayed in Nebraska if it was cheaper to register? That is the $11,000,000 question.

Do I think that at least some people would still do this if there was a few bucks they think they could save going across state lines? Absolutely. Like any other problem there is never a complete solution but it looks like there may be potential for everyone registering and the state to save money.

Just don't think I am promoting changing to accomidate those that are doing something illegal. Cut everyone some slack and maybe we might be surprised. Who knows. Not enough information to look at. "

 SmoooveB wrote on July 16, 2008 3:56 pm:
" I pay my taxes. Why shouldn't everyone else? "

 Anti-Snitch wrote on July 16, 2008 4:23 pm:
" Concerned Neighbor,
Awesome, tonight will I find you sitting on your porch yelling at the Neighbor kids to quit playing. "

 J J wrote on July 16, 2008 4:26 pm:
" Why dont the state of nebraska include the sales tax and license fees in the car loan like alot of states do.this would not only help the the state get there money, but help the tax payers as well! "

 JoBeth wrote on July 16, 2008 4:26 pm:
" OK, now how about all the poeple that register in another county, like where their parents live and the ones with the cars are in their 50's? I don't think this is right. I own property in another county, but I live here so I register here. Lot's of people brag that they don't. How can we catch them? "

 Tacres wrote on July 16, 2008 4:34 pm:
" I've been to Council Bluffs, but I don't remember seeing the Utopia that results from having lower vehicle taxes. Any guesses as to how many Iowans work in Nebraska and pay higher non-resident income taxes? The number of Nebraskans that work in another state (excluding low paying casino jobs) has to be nearly none. Our small firm of 14 employs three Iowans in good Nebraska-based jobs. "

 CS wrote on July 16, 2008 4:39 pm:
" Not all 'no in-transits' are illegal. Private vehicle sales do not have in-transits because it is illegal to manufacture one and put it in the window. You can't have an in-transit in NE unless you got it from a dealer. Having a hand done in-transit can net you a ticket. Of course, in Lincoln, I was informed that since I had no in-transit on my two week old car that I either had to pay the 100 ticket (for no proof of insurance and no registration;they assume both to write the ticket if you aren't standing there), come to court to contest it, or in the future leave my BIll of Sale on the dash so it would be visible to the city parking nazi. Ummm....sure, ill just leave the only proof of ownership I have in PLAIN SIGHT on my dashboard. What a riot. Out of state and out of county/city students don't have to pay NE or Lincoln registration, either. They are legally exempt if their home of residence is not in the city/state. "

 Only IA and SD wrote on July 16, 2008 4:45 pm:
" The reason they went after Iowa and South Dakota plates is that those states require folks to supply their Social Security number when they register, Nebraska used that data to compare our residents to their registration roles. I'm sure they'd go after Kansas, Colorado, Wyoming and Missouri too if they had access to such data. "

 re new to lincoln wrote on July 16, 2008 4:46 pm:
" This is about titling your car, not immigration. "

 Call Revenue wrote on July 16, 2008 5:09 pm:
" If your neighbors have bogus plates, don't call the police - call the state department of revenue. They're used to hammering tax evaders, and they're better equipped to do it. "

 BP wrote on July 16, 2008 5:24 pm:
" I have to register my car for the first time in Lincoln this month and I am not thrilled to start paying wheel tax. I know it is a lot to ask, but I think we deserve to see an itemize list of where all this money is going. The streets in north Lincoln (70th Holdredge-Adams to name one bad stretch) definetly are not seeing that money. And I know there will always be streets that need attention, but I wouldn't mind seeing it wrote down or put on a website. I think it would give people a little peace of mind. "

 Yer Pal Val wrote on July 16, 2008 5:33 pm:
" Jumping jehosophat. How many times will it take to knock it into peoples heads that such a large state with such a small population cannot be compared to a tiny state with a huge population and massive corporate base for taxation purposes? It seems like everyone wants to enforce laws regarding immigration, but doesn't want to enforce them re: taxation. Well folks, you can't just pick and choose. I only hope that the state patrol starts doing inter-county checks on where vehicles are registered. You know, for all folks registering their cars in Cherry or Seward (or other) counties when they live and work here in Lincoln. It's time to REALLY enforce the complaint about "Those folks that come here and steal our jobs, refuse to pay taxes, and send their money back home to support their families. They ought to be rounded up and thrown in jail or shipped back to where they come from..." (read Cortland, Roca, Seward, Waverly, Valparaiso, Davey...) "

 You are Way out of line wrote on July 17, 2008 8:46 am:
" Your taxes are high...look at the quotes. I would register my car somewhere else. Now if you LOWER them to reasonable rates, you'd still be making your money and people would now be legal to plate here. Nebraska you are becoming a hateful state--money grabbing state. Am so glad I am considering moving to KC. "

 rmm wrote on July 17, 2008 10:15 am:
" Might I suggest yet another petition drive! How about establishing a flat wheel tax statewide? A 20-year old car and a brand spankin new one each have four wheels and/or occupy and cause relatively the same amount of wear and tear on our roads. "

 they are asking for it wrote on July 17, 2008 11:01 am:
" a couple months ago i was driving behind a high-end Porshe with S.D. plates and a plate cover that named a Lincoln dealership that sells Porsches. um isn't that a dead give away you violated the law? "

 Josh wrote on July 17, 2008 12:05 pm:
" I get tired of the old argument that Nebraska is a big state with a small population, so these taxes have to be high to pay for all the roads. That is so untrue- there are other similar sized states with equal or even small populations that get by with roads in equally as good of shape as ours that have much lower taxes and fees all around! South Dakota, for example has much lower population, lower sales tax, lower car registration fees, and much lower property taxes, along with no state income tax. North Dakota is the same way, with even lower population, though they do have an income tax. "

 Jessie wrote on July 17, 2008 12:21 pm:
" Yes, our vehicle registration taxes are high. But that's no reason to break the law. Maybe if more people registered like they're supposed to they could lower it.

And if you like these other states so well, move there! "

 Jeremiah wrote on July 17, 2008 1:09 pm:
" I think you should pay based on the weight of your vehicle. Heavier trucks do more damage than my Corolla. Then all you SUV lovers can complain about something besides gas prices. "

 Fed wrote on July 17, 2008 11:03 pm:
" So now when will they go after whoever violated FEDERAL law by using SSNs from drivers licenses for something they're not authorized for? Oh yea, 34 years of Privacy Act violations--doesn't look good for enforcement. SSNs collected for driver's licensing are ONLY to be used for dead-beat parent enforcement. Oh well. Who needs rights. "

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