Why are there so many cars with Morelos license plates in CDMX?

Placas Morelos Cdmx

In CDMX, it is common to see a large number of cars circulating with Morelos license plates. This trend has its origin in the elimination of vehicle ownership in that state since 2012, which has encouraged many owners of vehicles, especially luxury vehicles, to license there to avoid this tax.

It should be remembered that in CDMX only vehicles whose value does not exceed 250,000 pesos are exempt from paying ownership tax, which leaves out the vast majority of cars, especially high-end ones.

This phenomenon is not fortuitous, since on many occasions the vehicle agencies themselves offer buyers the option of registering in Morelos to save money on the purchase. However, this practice is illegal, since in 2022 a reform was made to article 160 of the Tax Code that requires people living in CDMX to license their cars in the capital. The fine for not complying with this condition ranges from 521 pesos to 911 pesos.

In addition to the elimination of the ownership, another factor that encourages this practice is that Morelos is part of the Environmental Commission of the Megalopolis, which allows cars with license plates from this state to circulate without problems in CDMX, as long as they have the appropriate verification hologram.

However, this situation generates serious problems. First, the CDMX Government stops collecting millions of pesos in taxes, which affects its public finances. Second, some vehicles with Morelos license plates evade photo fines in CDMX, which can lead to a road safety problem due to speeding.

Ferrari 360 Modena Mexico

Many super sports vehicles are registered in Morelos

Ferrari 360 Modena Mexico

A practice that benefits Morelos?

Despite the disadvantages, there is a small advantage to this practice: owners of cars with Morelos license plates are not exempt from vehicle inspection, so more than a million people must periodically go to that state to carry out their procedures.

Streets of Downtown Cuernavaca, Morelos

This generates a massive exodus of people, who often take advantage of the opportunity to carry out activities related to tourism, which in theory benefits some sectors of the local economy of Morelos, especially those related to gastronomy, entertainment and lodging.

Source: xataka