Legislators say vehicle tags need reform

Wednesday, March 15th 2000, 12:00 am

By: News On 6

OKLAHOMA CITY (AP) -- Oklahoma legislators told a small crowd Wednesday that the current vehicle tag system is archaic and needs to be reformed and outlined their ideas on how to accomplish that.

"This issue is probably only rivaled by gas prices as far as the average motorist is concerned," said Chuck Mai, a spokesman for AAA Oklahoma, which sponsored the public forum. "Our main purpose is to keep this issue on the burner and to keep this issue alive."

Reps. Todd Hiett, R-Kellyville, and Ron Kirby, D-Lawton, who have both authored vehicle tag reform bills in the House, said
Oklahomans are paying too much in vehicle tags.

Hiett's bill, House Bill 2702, would lower the cost of vehicle tags to a flat rate, but would not increase the excise tax. His bill would cut tag fees to $85 for cars up to 5 years old. For cars 6 to 10 years old, the tag would be $45 and for older cars the cost would be $15.

"I think that the taxpayers should be first in line, not last in line to receive a reduction," he said.

Hiett said his bill would mean an estimated loss of nearly $138 million in collected tax revenue.

But the impact of the lost revenue would not be as extreme because of an estimated $500 million from a proposed bond project
and because of compliance with new vehicle tag law.

Some vehicles driven exclusively in Oklahoma are registered as out of state vehicles. In states like Texas, Arkansas and Kansas, the vehicle tag cost is substantially lower than in Oklahoma, Hiett said.

The figures used to estimate the lost revenue can't take into account these unregistered vehicles so the loss would probably be
decreased, he said.

Kirby's bill would cut tag fees to $85 a year for cars up to 5 years old, $45 for cars between 6 and 10 years old and $15 for older cars. His bill also adjusts the 3.25 percent excise tax on
the factory-delivered price of a vehicle to a 4.5 percent sales tax on the actual price after trade-ins and other discounts are factored in.

"Basically, what we are trying to do," Kirby said, "is what all the eight surrounding states are doing, pay the tax on the actual price."

Rep. Russ Roach, D-Tulsa, said the system is so unfair that some tag agencies and employees are coaching people to cheat the system by getting farm or commercial vehicle tags.

He said his constituents are constantly complaining to him about $40,000 sport utility vehicles that are labeled as commercial
vehicles, but are used for other things like hauling children around town.

Roach said in the past 10 years, normal registration for vehicles has gone down while the number of registered farm and
commercial vehicles has risen 40 percent.

Roach suggested the final solution to the vehicle tag issue may be an initiative petition.

"This is an issue where the public is way ahead of the Legislature," Roach said. "If the Legislature fails to respond, I think the public should take it into their hands.