Motor Vehicle Tax Evasion Investigation Nets Results


Motor Vehicle Tax Fraud Investigationesults in Compliance & Additional Revenue

(Lincoln, NE)-  An ongoing investigation into the failure of Nebraska residents to properly title and register their vehicles in the State of Nebraska has led to two arrests, and more than 2,500 people, registering 2,800 vehicles, resulting in more than $850,000.00 collected.

The investigation by the Nebraska State Patrol (NSP) in conjunction with the Nebraska Department of Motor Vehicles (DMV) and the Nebraska Department of Revenue began in February 2008, and led to the June mailing of more than 10,000 letters to Nebraska residents with vehicles registered in the states of Iowa and South Dakota.

“We are extremely pleased with the outcome of the investigation to this point,” said Colonel Bryan Tuma, Superintendent of the Nebraska State Patrol.  “Our investigators continue to review information provided by residents who complied with the letter.   We look forward to being able to clear the names of the people who are in compliance and seek compliance from those residents who are violating the law.”

The investigation relied on data base information gathered from the Iowa and South Dakota Motor Vehicle Departments. 

Beverly Neth, Director of the Nebraska Department of Motor Vehicles said, “We are finding a high percentage of residents who have improperly registered vehicles are those who have purchased high ticket items, such as luxury cars or motor homes.  For one individual, that amounted to more than $26,000.00 in back taxes and fees owed on two motor homes.”

The Department of Motor Vehicles and the Department of Revenue has estimated citizens failing to properly title and register their vehicles are costing the State of Nebraska upwards of $11 million annually.   This figure includes loss of revenue from motor vehicle taxes and fees as well a loss in sales tax revenue.

Tax Commissioner Doug Ewald said, “This investigation sends a message, the State of Nebraska is serious about creating a more equitable tax structure for all Nebraskans, through the aggressive enforcement of the state's motor vehicle registration laws.”

Governor Dave Heineman said, “I want to thank all of those who've taken steps to get in compliance and who have cooperated with this investigation.  I appreciate the work of everyone involved in this effort and I hope it will encourage the remaining individuals to follow-up with the State Patrol's Auto Fraud Division.”

Of the 10, 241 letters mailed concerning compliance with vehicle registration laws, approximately 2,100 individuals have contacted NSP and provided documentation demonstrating compliance with state law.  So far, 2, 518 people have come in compliance.  More than a third of those receiving a letter have yet to respond to the inquiry. 

Those individuals who have yet to respond are asked to contact their County Treasurer to verify that their paperwork is correct.   Individuals needing further clarification can contact the Nebraska Auto Fraud Division at (402) 471-0111.