So why exactly does Colorado and California tax the hell out of new cars?

Oldsmobilex

When it comes to taxing cars, the state of Colorado along with many
other large states like California, have got it completely wrong.

In fact, not only does Colorado have it wrong, but completely backwards as well.

After
doing a bit of internet digging I discovered that Colorado has a fairy
complicated and convoluted process of taxing and licensing cars. In
other words, when you go to get your new car's license plates you are
taxed using a formula that takes into account:

"*The weight and year of the vehicle determines the license fees.

*The year of the vehicle and the taxable value determine the ownership fee.

*The
taxable value is determined from the MSRP (Manufacturers Suggested
Retail Price). This is calculated depending on the type of vehicle."

And
as many Colorado resident are well aware, the amount you pay the state
for tags decreases each year along with the value of your car.

In California a similar VFL (Vehicle Value Formula)
is calculated and, "The formula for VLF assessment established by the
Legislature is based upon the purchase price of the vehicle or the
value of the vehicle when acquired. The VLF decreases with each renewal
for the first 11 years."

The real word outcome of this backwards
taxing calculation means that both states are creating and nourishing
strong incentives to keep old cars on the road, and fostering equally
strong disincentives to for car buyers to go out and buy new cars.

At a time when many European countries like the U.K. have passed laws
that pay citizens to scrap old cars, in Colorado and California local
politicians are doing the exact opposite by dramatically taxing new
cars.

This
is completely backwards for a number of very straightforward reasons.
Even forgetting about the fact that new car sales create jobs and help
the struggling economy, imposing a higher tax on new cars keeps old
cars on the road longer, and is extremely short sighted because:

1)
Old cars pollute much more. Cars that are 10-years or older, "tend to
have worse smog-forming emissions, partly because the regulations
weren't as strict a decade ago, and partly because pollution controls
can fail with time."

2) Old cars (10-years or older) are
unsafe when compared to new cars. Many 2009 cars come equipped with
such standard safely features such as multiple air bags, traction
control, stability control, bluetooth phone connectivity, satellite
navigation, radar based cruise control, and new laser based systems
that provide better night vision and even stop the car in the case of a possible head on crash.

Plus
new cars have better brakes, tires, headlights, crash protection, and
so much more  improved safety technology that it makes old cars look
like the model T of your great grandfather's era. Yet our local
politicians still think it wise to substantially tax safer and cleaner
new cars, and actually decrease this tax as the car becomes older,
unsafer, and begins to pollute more and more.

Is this not completely backwards?

Of
course, there are politicians who would argue that increase the tax on
car ownership as a car gets older is unfair to the those who cannot
afford new cars.

But this is not a social rights or welfare issue. It should be fist and foremost about safety.

Every
time I see a car in a parking lot at the local grocery store with bald
tires I shutter. Because I know that my wife's and my son's life is at
risk during the next rain or snow storm from a driver who can't or
won't be able to stop when the light turns red.

I see the T-bone
crash flash before my eyes, and hear the blades of the life flight
helicopter trip to the hospital as my family is clinging to life.

No matter if politicians believe or not, the four thousand pound car driving down the street is the most dangerous weapon you'll ever own.

I
also deeply believe it should also be the safest. In my opinion any tax
that encourages citizens to drive unsafe cars in not only backwards,
but completely idiotic, and just plain wrong.

Click HERE to follow me on Twitter for the latest news and updates.