7/16/09-Gov. Jim Gibbons has signed a bill into law that changes the way the state determines depreciation on motor vehicles. It takes effect Sept. 1.
Previously SB429, the new law slows the depreciation factor in calculating the basic governmental services tax.
In addition to vehicles based in Nevada, the depreciation changes also apply to vehicles based in other jurisdictions apportioned for travel in the state through the IRP.
For trucks weighing at least 10,000 pounds, the amount of depreciation allowed on the vehicle’s value will be reduced from 75 percent to 85 percent in the first year. During the next nine years, the values will be 10 percent higher than they were previously (to 38 percent in the fifth year, for example, from 28 percent).
For vehicle weighing less than 10,000 pounds, the amount of depreciation will be reduced from 85 percent to 95 percent in the first year.
The tax is estimated to raise $94 million during the next two years. The extra revenue will be routed to the state’s general fund.