LINCOLN — A crackdown on improper out-of-state vehicle registrations has netted Nebraska $850,000 more in taxes and fees, but state officials aren't certain whether they will broaden the investigation to include more states.

So far, officials have focused on Nebraska vehicles registered in South Dakota and Iowa.

That's because the two neighboring states use Social Security numbers to identify people registering cars — making it possible to run a computer match against Nebraska's driver's license database, which also uses Social Security numbers.

Beverly Neth, State Department of Motor Vehicles director, said officials know Nebraska cars are being improperly registered in more states.

However, officials must find a "common identifier" like a Social Security number to conduct a similar review of auto registration records in those states. Many states, including Nebraska, do not include Social Security numbers on motor vehicle registrations, she said.

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State Patrol Col. Bryan Tuma reported Wednesday that the current investigation had found a "pervasive and widespread" practice of Nebraskans circumventing state motor vehicle tax laws by registering their cars in the neighboring states.

More than 2,500 people voluntarily re-registered about 2,800 vehicles in Nebraska and paid back taxes and fees, Tuma said.

State law requires any motor vehicle or trailer that is operated, parked or towed on Nebraska highways for more than 30 days to be registered in Nebraska.

Tuma said each of Nebraska's 93 counties has seen at least one motorist re-register a vehicle after being notified by the State Patrol. Two people in Lancaster County were arrested on suspicion of tax evasion.

Most of the re-registrations, about 40 percent, came from Douglas County, while 15 percent were from Sarpy County and 9 percent from Lancaster County.

Tuma said 2,096 of the people who voluntarily paid up had registered their vehicles in Iowa and 422 in South Dakota.

The effort has resulted in collection of $260,000 in motor vehicle taxes; $399,000 in state sales taxes; $63,000 in city sales taxes; $51,000 in wheel taxes; $72,000 in fees; $384 in county sales taxes; and $7,600 in sales tax interest and penalties.

Nebraska officials know the practice isn't confined to Iowa and South Dakota.

Montana, for instance, charges far less to title and license motor homes than Nebraska, which collects sales tax on the vehicles. Some of the homes can be valued at several hundred thousand dollars.

Neth and Tax Commissioner Doug Ewald said Internet sites and out-of-state law firms help Nebraskans establish post office boxes and limited liability corporations for use in licensing motor homes.

State Patrol spokeswoman Deb Collins said the patrol is receiving more reports of Nebraska cars with plates from as far away as Oregon due to heightened attention to the issue.

Neth said a decision will be made about the scope of future enforcement actions when the current investigation is completed.

She said the current effort, which involved a review of 14,000 records and letters being sent to more than 10,000 Nebraskans with questionable registrations, has taken considerable staff time.

The State Patrol's commander said authorities will track down the 3,825 people who still haven't responded to letters asking them to pay up or explain why they registered a vehicle in Iowa or South Dakota.

Nebraska vehicle registration taxes are based on the age and value of each vehicle and can total hundreds of dollars, so registering a car elsewhere can yield a savings of hundreds of dollars annually.

Neth objected when asked if the investigation indicated that Nebraska motor vehicle taxes are too high, prompting people to "save money" by registering their cars in states with lower taxes and fees.

"I don't see that as 'saving money.' I see it as committing a crime," Neth said.

Many of the vehicles being registered out of state are high-ticket luxury cars or motor homes, she said. She said one person paid more than $26,000 in back taxes and fees on two motor homes. One of the homes was valued at $200,000 and the second one was valued at $400,000.

She also said those who improperly registered vehicles in other states are not entitled to refunds from those states.

Although the investigation has found a significant number of violations, officials said no wrongdoing was found in the cases of about one-fifth of the people who got letters from the State Patrol.

Most were able to show legitimate reasons for registering a vehicle in another state. Those who work or attend college in another state may register the cars they use in that state.

In at least 17 cases, Social Security numbers belonging to Nebraskans were mistakenly listed on Iowa vehicle registrations, apparently because of typographical errors.

In a few other cases, Neth said, someone may have stolen a Nebraskan's identity to register a car, and she urged anyone who thinks their Social Security number was incorrectly used to contact the Iowa Department of Transportation's Office of Vehicle Services to investigate further.

• Contact the writer: 402-473-9581, leslie.reed@owh.com