Warning: Vehicles Registered Outside Utah Could Now Cost You
Crack Down on Vehicles Registered Out of State
Lawmakers are looking to stop people in Utah who register their cars, boats, and recreational vehicles in another state to avoid sales tax. When these vehicles are bought in another state, but used in Utah, it undermines the tax base.
There is no property tax in Idaho, Oregon and Washington and this is the reason some Utahns register their vehicles in these states to avoid taxes in the beehive state.
Because sales tax helps maintain roads and reservoirs, legislators are focusing on these illegal registrations. They estimate there are as many as 16,000 of these vehicles in Utah resulting in a loss of $64 million to the state.
What Will it Cost You if Your Vehicle Isn’t Registered in Utah?
The current plan is not to go after the money lost in the past, but to get these vehicles registered properly in the future. They are offering a six-month grace period where people can get their vehicles registered correctly.
It is important at a time when the state is improving the highways in Utah and needs the funding that is being missed. This isn’t a new problem, and other states deal with similar issues and have different ways of cracking down on it.
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If the problem persists or grows, legislatures may have to look at stronger measures. However it turns out, if you have cars, boats, or off-road vehicles registered in another state, expect to be hearing from the state of Utah soon.
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