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Committee recommends against bill that would lower excise tax on older vehicles and change cross‑state exemption
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Summary
The House Transportation Committee voted 12–2 to recommend 'do not pass' on House Bill 1484, which would set a 5% excise tax on vehicles fewer than 10 years old and a $100 flat tax on vehicles 10 years or older and would broaden an exemption for purchases from states that do not assess vehicle excise or sales tax.
Representative Jared Haggart, R‑District 20, introduced House Bill 1484 to change how North Dakota charges motor vehicle excise tax, proposing a 5% tax on vehicles fewer than 10 years old and a $100 flat fee for vehicles 10 years old or older. “The crux of the bill is to change the tax imposed on motor vehicles,” Haggart told the committee, adding the measure came from a constituent who faced a large tax bill after moving back to the state.
Opponents said the proposal would encourage North Dakota residents to buy vehicles across state lines. “This language will incent individuals to avoid purchasing motor vehicles in North Dakota and instead simply drive across the border into Montana to make their purchases,” Matthew Larsgaard of the Automobile Dealers Association of North Dakota told the panel and outlined an example comparing the effects on a $50,000 sale.
Local officials warned of the bill’s effect on road funding. Corey Peterson of the North Dakota League of Cities said the fiscal note projects an $84 million reduction in state collections and flagged a likely loss to the flexible transportation fund that supports local road maintenance. Committee members also cited a fiscal estimate tied specifically to the age‑based change: about $10 million for the provision that sets older vehicles to the flat $100 amount.
After discussion about fairness, revenue needs for roads and cross‑border purchasing incentives, Representative Greg Koppelman moved a motion for the committee to recommend that the bill not pass; the motion was seconded by Representative Morton and carried on a roll call, 12–2. The roll call recorded Representative Fralick and Representative Johnston as the two dissenting votes.
The committee record shows members pressed on the scope of the fiscal note, the mechanics of use‑tax reporting for out‑of‑state purchases, and the equity question of taxing repeatedly traded used vehicles. Committee leadership said DOT and staff could consider future proposals that would phase or otherwise modify registration fees by number of transfers or age, but no amendment to HB 1484 was adopted before the committee voted to recommend do not pass.
Votes at a glance: the committee voted 12–2 to recommend 'do not pass' on House Bill 1484.
The bill’s sponsor and opponents asked for further work on alternatives that would protect state highway revenues while addressing concerns about repeated taxation of long‑owned vehicles.
