Car tag crisis

Most Mississippians think their cars tags are already high enough. But if the state legislature does not act before the first of July we may actually see car tags double in price. In fact, Hancock County Tax Collector Jimmy Ladner calls the situation a crisis.

In Mississippi part of the sales tax you pay on a new car goes to offset the price of car tags. However, with the economic slow down fewer new cars are being sold and the car tag fund is running out of money. In fact by July 1st, the shortage may be as high as 33 million. So what's the solution?

The legislature has been debating whether to take some of the proposed hike in tobacco taxes to bailout the fund. However, as you know so far this year the legislature has not agreed on how much to raise the tobacco tax. Lawmakers will consider the issue again in late May or early June. We have also heard proposals to raise taxes on the sale of used cars to help offset the fund shortage and even some people have suggested borrowing from the state's rainy day fund.

We are not sure what the best solution is. But we do know one thing for sure, Mississippi tax payers are going to be extremely upset at the legislature if it does not find somehow to fix the problem without doubling the price of car tags in Mississippi.

That's our opinion, we would like to hear yours. Email your thoughts to, or post your comments below.

David Vincent
WLOX-TV Station Manager

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