Understanding the Car Tag Vote

For better understanding of the difference between the current car tax/tag systems and the proposed system to be voted on August, 22, kotv.com has chosen five different used vehicles and one new car. Costs under the current and proposed systems will be compared over an assumed five-year ownership of each vehicle. The vehicles used for the comparisons are:
1994 Nissan Altima
1999 Ford Ranger
1998 Ford Mustang
1994 Chevy Silverado extended cab
1985 Honda Prelude

2000 Chevy S-10


Under the Current Law

Excise tax is paid one time, at the time of purchase. The tax is 3.25% of the base value of the car. Base value is the current value of the vehicle. The State of Oklahoma considers the base value to be the total delivery price, or price paid when car was new, minus depreciation. The state depreciates a cars’ value at 35%/year for excise tax calculation.

Tags are paid every year. The tax is 1.25% of a different base value for the car. This base value is calculated at 10% depreciation per year of the factory delivery price. That’s basically what the car was worth when it was new, before any extras are added by the buyer.

For instance:
1999 Ford Ranger
Delivery Price: $19,800
Current Value for tax purpose: $12,870
Excise tax for purchase of this vehicle: $418 Tag price for 2000: $222
Five year projected cost: $1,348

1998 Ford Mustang
Delivery Price: $17,500
Current value for tax purpose: $7,393
Excise tax: $240 Tag price for 2000: $161
Five year projection: $916

1994 Chevy Silverado extended cab
Delivery Price: $19,500
Current value for tax purpose: $1,470
Excise Tax: $48 Tag price for 2000: $139
Five year projection: $634

1994 Nissan Altima
Delivery Price: $15,700
Current value for tax purpose: $1184
Excise Tax: $25 Tag price for 2000: $113
Five year projection: $504

1985 Honda Prelude
Delivery Price: $13,500
Current value for tax purpose: $21
Excise Tax: $8 (state minimum) Tag price for 2000: $67
Five year projection: $299

2000 Chevy S-10
Delivery Price: $20,000
Current value for tax purpose: $20,000
Excise Tax: $650 Tag price for 2000: $270
Five year projection: $1738


Under the Proposed System

Excise tax will still be paid only one time, at the time of purchase. It will be calculated at 3.25% of actual purchase price. For example; our Chevy S-10 is brand new and valued by the current formula at $20,000. Under the proposed law, the owner may only pay $17,000 for the truck. $17,000 would be the price that the tax is calculated on. For used cars, we will use the most recent Kelley Blue Book value for each vehicle.

Tags will still be paid every year, but the system to figure your tag costs is much simpler. It is a fixed cost on a sliding scale based on how old the car is. Here is the scale.

1-4 yr. old vehicle= $85
5-8= $75
9-12= $55
13-16= $35
17+ yr. old vehicle= $15
*Note: A $5 administration fee is added to the first year tag purchase.

1999 Ford Ranger
Delivery price: $19,800
Current market value: $14,075
Excise tax: $457 Tag price for 2000: $90
Five year projection: $867

1998 Ford Mustang
Delivery price: $17,500
Current market value: $16,000
Excise tax: $520 Tag price for 2000: $90
Five year projection: $920

1994 Chevy Silverado extended cab
Delivery price: $19,500
Current market value: $13,300
Excise tax: $432 Tag price for 2000: $80
Five year projection: $752

1994 Nissan Altima
Delivery price: $15,700
Current market value: $6,500
Excise tax: $211 Tag price for 2000: $80
Five year projection: $531

1985 Honda Prelude
Delivery price: $13,500
Current market value: $2,700
Excise tax: $88 Tag price for 2000: $40
Five year projection: $208

2000 Chevy S-10
Delivery price: $20,000
Current market value: $17,000
Excise tax: $553 Tag price for 2000: $90
Five year projection: $973


Vehicle Comparisons

Five year projection Current vs. Proposed

2000 Chevy S-10 $1,735 vs. $973
1999 Ford Ranger $1,343 vs. $867
1998 Ford Mustang $916 vs. $920
1994 Chevy Silverado $634 vs. $752
1994 Nissan Altima $504 vs. $531
1985 Honda Prelude $299 vs. $208


Sean Mossman is a writer/producer for kotv.com. All questions or comments about this or any story can be e-mailed to smossman@kotv.com.