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Montana Legislature Scales Back Proposed ‘Ferrari Tax’

Legislature originally called for taxing those luxury vehicles between .08 percent and 1 percent of the retail price

By Molly Priddy

HELENA — Montana lawmakers are scaling back their so-called “Ferrari tax” on cars and recreational vehicles worth more than $150,000.

The Legislature originally called for taxing those luxury vehicles between .08 percent and 1 percent of the retail price, depending on the age of the vehicle.

The additional money would be used to shore up a special revenue account used for road projects and by the Department of Justice.

But a conference committee of legislators scaled back the tax Wednesday after car and RV dealers objected. The measure now would add an $825 fee on top of regular motor vehicle registration costs for 10 years.

Republican Rep. Randy Brodehl of Kalispell says the revisions were the product of talks between lawmakers, the governor’s office and dealers to make the tax more palatable.