Printer Friendly Version

This is a printer friendly version of an article from www.goupstate.com
To print this article open the file menu and choose Print.

Back

Article published Jul 2, 2004
Counties should be more aggressive in delinquent tax collections

One of the most hated taxes in South Carolina is the levy placed on vehicles -- hated so much that some people just don't pay.Counties in the Palmetto State lose millions of dollars annually because they aren't as aggressive in their car tax collections as they are for real estate taxes.Much of the reason for these unpaid bills is that county officials rely on law enforcement authorities to catch people whose vehicle taxes are delinquent. An expired license plate is a good indication that taxes have not been paid on that vehicle. This enforcement job largely falls to state troopers, who are fewer on our roadways because of state budget cutbacks and have more important priorities, such as helping to make our roads safer -- not chasing down deadbeat taxpayers.The fact that troopers issued 961 tickets last year for expired license plates and have written 292 so far this year likely is an indication of the worsening inability of state troopers to police expiration dates on vehicle license plates.The biggest flaw in the system of delinquent vehicle tax collections, however, was created when state law was changed two decades ago, preventing county tax collectors from refusing taxes on a newly acquired vehicle until the delinquent taxpayer had settled his past vehicle tax debts. Tax collectors previously could keep a vehicle owner from getting a license plate for one car while still owing taxes on another. The law was rewritten to allow a person to purchase a car and get a tag even though taxes were delinquent on another car.But before lawmakers race back to the Statehouse to consider fixing that problem -- and some are more interested in doing away with vehicle taxes -- local governments and the state Department of Revenue should examine technology that would help them verify and track down unpaid vehicle taxes, which amounted to $2.6 million last year in Spartanburg County.Vehicle taxes, say tax collectors, sometimes go unpaid for legitimate reasons. The owner might have sold the vehicle on which taxes were owed and failed to notify the county auditor. But the issue of just how much money counties are losing in vehicle taxes to delinquent taxpayers won't be resolved unless county officials decide to become more aggressive in collections. This could be done by mailing notices to suspected delinquent taxpayers and establishing a link to state Division of Motor Vehicle records that would track vehicle ownership, clearing up questions of wheth-er someone owes a delinquent tax bill.Ignored, government will continue to allow an unfair shifting of the tax burden to those who aren't trying to beat the system.