Buyers of new luxury cars and recreational vehicles registered in Montana would face a new annual tax of at least $1,500 if their vehicles are worth at least $150,000, under a bill endorsed by a Senate committee on Wednesday.

As reported by the Bozeman Daily Chronicle, the Senate Finance and Claims Committee unanimously voted to levy a new 1 percent surtax on new vehicles and RVs with manufacturers’ suggested retail prices of more than $150,000. The tax would drop to 0.9% when vehicles are 1 year old, to 0.8 percent if they are 2 years old.

Dubbed by some legislators as the “Ferrari tax,” the new tax would be on top of the current annual licensing fees already paid by owners of these vehicles under the amendment.

The amendments are now on House Bill 650, sponsored by Rep. Randy Brodehl, R-Kalispell. The full Senate will debate the bill.
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