Nebraskans buying cars hit hard by taxes, fees

An Omaha World-Herald review has found that Nebraska residents, on average, pay more in taxes and fees when they buy a car here than they would in any neighboring state but Kansas. It’s worse in Omaha and several other Nebraska cities because of a local sales tax and a wheel tax that many residents of nearby states avoid. Omaha, in fact, charges the ninth-highest combination of automobile and gasoline taxes of 50 major U.S. cities in a District of Columbia tax study.

Omaha ranks higher than any other Great Plains city in the study — 11 spots ahead of its nearest rival, Wichita, Kan. State officials, car dealers and car owners agree it’s the totality of these taxes and fees — not just the high cost of registration — that has led thousands of Nebraskans to cross the state’s borders and illegally register their cars and pay taxes in nearby states. Some say the Nebraska Legislature needs to address the matter soon by lowering auto taxes, making it tougher to evade those taxes, or both. “All I can tell you is this: These people aren’t going to Iowa, South Dakota and Wyoming because they like the color of the license plates,” said Loy Todd, director of the Nebraska New Car and Truck Dealers Association.

If an Omahan bought a 2008 Ford Explorer in South Dakota and illegally registered it there earlier this year, he paid about $1,400 less in combined sales taxes, registration costs and fees than he would have in Omaha. And that’s just in the first year.

Across the border in Iowa, buy a Chevy Silverado pickup truck and pay about $1,000 less in taxes and registration fees than you would in Nebraska, in part because Iowa charges far less to register a pickup truck than it does a car. Several loopholes in Nebraska law also make it easier to evade car taxes, said Beverly Neth, director of the Nebraska Department of Motor Vehicles.

Most bridges in Nebraska considered safe

Motorists can safely drive cars and pickups over any open highway bridge in Nebraska, a state roads official said Thursday. Even if an open bridge is listed as structurally deficient on the National Bridge Inventory, it’s safe for passenger vehicles, said Mary Jo Oie, spokeswoman for the Nebraska Department of Roads. Drivers with heavy loads, however, need to observe posted weight limits. At the same time, Nebraska, like other states, has bridges that increasingly need repairs and replacement, Oie said.

Nebraska has closed no state highway bridges in response to last year’s Interstate 35 bridge collapse in Minneapolis, Oie said. Any bridges currently closed for replacement or repair were scheduled before the collapse. All of the roughly 15,000 bridges in Nebraska are inspected at least once every two years. About 3,500 are maintained by the state and another 380 belong to cities.

The remaining 11,500 are maintained by Nebraska counties. Use extra caution when encountering county bridges on minimum maintenance dirt roads, a former state bridge engineer told the Journal Star last year.

Nebraska officials: Ethanol should defend itself

These days corn-based ethanol is being blamed for worldwide food shortages, inflation and environmental problems. But Nebraska Ethanol Board officials say much of the criticisms of ethanol are based on flawed information, and the industry needs to do more to defend itself. Nebraska Ethanol Board officials meeting Friday in Kearney said their industry had been slow to defend itself.

“The ethanol industry, frankly, didn’t do as good a job being proactive,” said Ethanol Board Administrator Todd Sneller. The federal Renewable Fuels Standard is being challenged on several fronts, plus tax incentives and related tariffs are set to expire at the end of 2010. Nebraska ranks second nationally in ethanol production. The state’s Ethanol Board says Nebraska’s 21 ethanol plants annually produce more than 1.3 billion gallons of ethanol, using nearly a half billion bushels of corn.

Nebraska official: Ethanol plants focused on managing risk in tough times

As corn prices soar near the $8 mark, owners and managers at Nebraska’s 21 ethanol plants are focusing on risk management techniques with their ultimate success hinging on the ability to anticipate the cyclical nature of the commodities business. Most of the companies already up and running in the state “are on pretty solid ground” in that respect, according to Todd Sneller, administrator of the Nebraska Ethanol Board.

These days, however, there is little room for error. “While we hear a lot about $7 and $8 corn, I suspect most Nebraska plants are not operating with costs at that level,” Sneller said. “Many of the managers I’ve talked to have been through these cycles before and have been managing risk and building up capital reserves. Because of that foresight they will be better able to weather these challenging economic times.” Debt is another significant variable in the health of individual plants, Sneller noted. Many of Nebraska’s plants have been in operation for a period of time, allowing them to amortize much of that debt.

The serious economic impact of Nebraska’s recent flooding

Destroyed crops, damaged roads — central Nebraska is busy recovering from a month of flooding. Counties are spending tens of thousands of dollars on roadwork, while farmers are predicting much smaller yields.

To give you an idea of the damage, farmers in Buffalo County alone could see a 25% reduction in their yield. Meanwhile, road crews could be spending the rest of the summer bringing back flooded roadways.

Time for Motor Vehicle Tax Overhaul in Nebraska

Nebraska needs to overhaul its motor vehicle tax, according to the latest report from the Platte Institute for Economic Research. In a four-page report released Monday, the nonpartisan think tank recommends significant change to the amount citizens must pay when registering their vehicles and to the way funds received from the tax are used. In the report, the Platte Institute uses an example of a registering a 2007 Honda Odyssey in Nebraska and bordering states.

The report shows that only Wyoming is more expensive than Nebraska. The report also points out that 60% of the motor vehicle tax goes to education while none of the tax is specifically allocated to roads, even though we are facing a roads-funding conundrum. Registering a 2007 Honda Odyssey in Lincoln will cost you roughly 10 times more than it would in South Dakota, according to the report.

Roger Lempke, Executive Director of the Platte Institute, said: “To have the highest vehicle registration cost, except for Wyoming, in the Midwest region and yet face such a severe roads construction funds crisis appears illogical.” To read the full report, go to: www.platteinstitute.org

Gas tax to go up 3 cents a gallon in Nebraska – but less than projected

Nebraska motorists will feel a little more pain at the pump beginning July 1. State gasoline taxes will go up 3 cents a gallon on that date, the Nebraska Department of Revenue announced Monday. The increase will put the state’s share of motor fuel taxes at 26 cents per gallon of gasoline, gasohol or diesel fuel. The federal government charges an additional 18.4 cents per gallon of gasoline or gasohol, and 24.4 cents per gallon of diesel fuel.

The state tax increase is slightly less than had been projected this spring, when the Legislature voted a $15 million budget increase for the State Department of Roads. At that time, officials predicted that the budget boost would result in a July 1 increase of 3.5 cents per gallon, to a total of 26.5 cents.

State Sen. Deb Fischer of Valentine, who heads the Transportation Committee and pushed for the gas tax change, said she wondered whether consumers would notice the tax increase when they buy gas. She said many motorists didn’t notice the 4-cent drop on Jan. 1 because of rising gasoline prices. She said that during a trip to Lincoln last week, she paid $3.95 per gallon to fuel up in Valentine, drove past pumps in Kearney selling gas at $3.77 a gallon, then refueled in Lincoln at $3.80 per gallon.

Nebraska senators stymie fight over railroad crossings

Local authorities could have a say in whether railroad crossings are closed under a bill lawmakers have advanced. Senator Russ Karpisek of Wilber was hoping to snuff out a 2006 law that could eventually close up to 200 crossings to motorists — most in small towns.

The law calls for all crossings without gates, signals or alarm bells that are within a quarter mile of another with such warning devices to be removed unless it would close the only route to property. Karpisek has agreed to an amended bill that leaves the 2006 law intact, but gives more credence to the written opinion of an engineer, who could be hired by a city. The opinion would be enough to exempt a crossing from closure under the measure (LB837) that won first-round approval Tuesday.

Nebraska gas prices could lag national peak, AAA says

Retail gas prices could climb as high as $4 a gallon this summer, but prices at such lofty levels will make many Americans think twice about hitting the road this summer, the Energy Department said Tuesday. Nonetheless, Nebraskans appear to be making plans for more travel in the late spring and early summer, according to AAA Nebraska.

Average monthly gas prices will peak around $3.60 a gallon in June, the Energy Department said. However, prices could rise much higher than that at times. “It is possible that prices at some point will cross the $4 per gallon threshold,” the EIA said. In Nebraska, motorists can expect a range of from $3.40 to $3.60 this summer for self-service unleaded, said AAA Nebraska spokeswoman Rose White.

Western Nebraska road repair delays blamed on costs

The needs of the Nebraska Department of Roads continue to be many despite a decrease in state funds. Craig Lind, Nebraska Dept. of Roads District 5 engineer, told the Gering Business Club on Wednesday that creative solutions are needed to deal with the demands for road repairs or new highways when there continues to be less money available for such projects. Lind said the way Nebraska taxes and supports highway construction will probably have to change because of the use of fuel-efficient hybrid vehicles and those that use alternative fuels.

Nebraska roads projects are funded, in part, with proceeds from fuel taxes, and that money has continued to decline as motorists drive fewer miles because of increased fuel costs. Lind said in fiscal year 2008, the district would have about $18.2 million in funding available for projects, and projections indicate that number might be cut to $12 million in fiscal year 2009.

With increases across the board for materials and other fixed costs, not as much work can be done as in the past. The cost of asphalt, for example, has increased from $120 a ton to $470 a ton.