Do you live in California but still owe state tax money? Presumably, by now, many are getting used to alternative means of transportation. On October 4, 2011, California Governor Jerry Brown signed legislation that authorized the revocation of the driver’s licenses of the 1,000 most egregious taxpayers in the state, unless they clearly file tax refund plans with the Franchise Tax Board or the State Board. of equalization. This latest move is aimed at ensuring that an estimated $6.5 billion in unpaid state income and business taxes are paid.
The California Department of Motor Vehicles can now access tax delinquent list information from state tax officials to facilitate the revocation of such licenses. Amazingly, the top 250 individuals and businesses on the state’s delinquent list owe approximately $155 million. On top of that, a Los Angeles couple has racked up the largest outstanding bill in personal income taxes, amounting to a staggering $14.2 million!
It was only this summer that a similar car/tax bill program went into effect on the East Coast, and drivers are still getting used to it! Elsewhere, to close an estimated $1.3 billion budget gap in Maryland, lawmakers agreed on June 1, 2011 to make driver’s licenses and vehicle registrations contingent on motorists’ tax compliance.
Vehicle-related taxes are becoming more common in the United States. This is not by accident, but a deliberate move to tap into Americans’ passion for cars. Other taxes, such as fuel taxes, are generally collected at both the federal and state levels. At this rate, we should be prepared for more car taxes; it all depends on fuel pump prices and the political landscape. Don’t be surprised if gas taxes are raised or tax breaks for drivers are introduced; It’s all about time.
If you drive a hybrid car, you can still enjoy some individual tax credits, though not for long. However, there are still more tax breaks available for other alternative fuel vehicles. To date, the inhabitants of urban and suburban areas continue to fight for the taxes of travelers.
Some tax advocates are happy with the per-mile tax proposals. Although official talks about a possible mileage tax appear to have been put on hold, it is only a matter of time before it comes up again.
One would wonder why there is so much fuss over vehicle-related taxes. It is simple; The United States has more than 200 million licensed drivers, all eligible taxpayers. The logic is that the more taxes the government squeezes out of defaulters, the more money for your treasury! And with the stinging recession, nothing is more important to the government than a steady stream of revenue!