Vehicle Property Tax Issues

[eRockBoon]

I so recently realized I was paying a lot more than I expected in property tax on my F-150 Lighting Pro (ER). So I went to our county vehicle tax estimator threw in my VIN and it spits back to me an MSRP that was nearly $13,000 more than the MSRP listed on the window sticker.

I called the county treasury's office and they tell me they don't actually use the MSRP to determine taxes but instead use the value of the vehicle determined by J.D. Power.

Is this common in other States? Is anyone else paying more in taxes simply because these trucks are more valuable than their original MSRP?

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[Amps]

Is this common in other States? Is anyone else paying more in taxes simply because these trucks are more valuable than their original MSRP?

Yes. My locality uses Fair Market Value. Many vehicles have had their fair market value increase.

 

[eRockBoon]

Crazy, I was always under the impression that is was based on MSRP. But I guess market value is more analogous to what the do for normal property tax.

 

[rdr854]

Most localities in Virginia use JD Power (NADA) clean trade in to determine the value.

 

[djherron]

I was told that the property taxes were higher on electric vehicles because you do not pay "road tax" (for road repair) because you do not purchase gasoline. This actually makes more sense more than just adding to the value of the vehicle.

 

[jimfigler]

Property tax? I guess that is one tax NY doesn't have for vehicles, we have enough others to compensate.

 

[Heliian]

property tax on my F-150 Lighting Pro

In my jurisdiction you pay tax when you purchase a vehicle. The price is based on dealer invoice when new and then based on book or declared value, whichever is higher, for used sales. I think they use KBB for value.

What is this "property tax" you're talking about though?

 

[jimfigler]

In my jurisdiction you pay tax when you purchase a vehicle. The price is based on dealer invoice when new and then based on book or declared value, whichever is higher, for used sales. I think they use KBB for value.

What is this "property tax" you're talking about though?

That is how NY does it but only goes to book value on a used sale if the selling price looks ridiculously low. But you can sell to a family member for $1.

 

[TaxmanHog]

I was told that the property taxes were higher on electric vehicles because you do not pay "road tax" (for road repair) because you do not purchase gasoline.

If this were the case, the tax rate would be codified in the state, city or county bylaws/charter/regulations/etc. depending where and how this is determined.

We have a flat rate of $25 tax per $1000 of valuation, of which the vehicles initial valuation is close to MSRP, then subsequent years it's depreciated until it hits 10% where the vehicle value remains frozen regardless of age, condition or market value.

 

[RickLightning]

In my jurisdiction you pay tax when you purchase a vehicle. The price is based on dealer invoice when new and then based on book or declared value, whichever is higher, for used sales. I think they use KBB for value.

What is this "property tax" you're talking about though?

In some states, they assess all "property" on an annual basis for taxation. For example, in Massachusetts, it's the town that assesses it. In South Carolina, it's the county.

In South Carolina, they also assess your motorboat, your trailer, your motor for the boat (separate).

So, when people say "our property taxes are less than yours"..., make sure you're adding in ALL the property taxes.

If we moved to SC, we might pay say 1/3 the real estate tax we pay in Michigan. But, we'd be assess the annual taxes on everything that Michigan doesn't charge. So, yes, in total it might be less, but it's not as far apart as it looks just comparing real estate taxes.

 

[jimfigler]

If this were the case, the tax rate would be codified in the state, city or county bylaws/charter/regulations/etc. depending where and how this is determined.

We have a flat rate of $25 tax per $1000 of valuation, of which the vehicles initial valuation is close to MSRP, then subsequent years it's depreciated until it hits 10% where the vehicle value remains frozen regardless of age, condition or market value.

Wow I never knew some states do this. So you pay 2.5% tax every year with the value depreciating every year? No initial sales tax?

 

[Toby57]

My state is very similar to what taxman posted.
Yes we pay sales tax on purchase.
You pay sales tax at time of purchase, where purchased.
The kicker, if the sales tax is less in the county you purchased than the county you live in,you must pay the difference at time of registration. If more than, to bad.

 

[eRockBoon]

We have a flat rate of $25 tax per $1000 of valuation, of which the vehicles initial valuation is close to MSRP, then subsequent years it's depreciated until it hits 10% where the vehicle value remains frozen regardless of age, condition or market value.

I would love to find this information for Douglas country Kansas but they won’t tell me when I call. They just tell me to use the online calculator which searches by VIN and my VIN often links to something that isn’t my vehicle.

 

[eRockBoon]

Wow I never knew some states do this. So you pay 2.5% tax every year with the value depreciating every year? No initial sales tax?

In my county we pay 9.3% sales tax at initial registration and 1.5% of fair market value annually when renewing registration.

 

[ivan256]

We have a flat rate of $25 tax per $1000 of valuation, of which the vehicles initial valuation is close to MSRP, then subsequent years it's depreciated until it hits 10% where the vehicle value remains frozen regardless of age, condition or market value.

Or until somebody else here buys it from you and it gets reset to the NADA guide valuation again.

It's nice how quickly and unrealistically valuations are depreciated here if you keep your vehicles a long time. But if you're somebody who likes to switch vehicles frequently - even if just changing from cheap old car to cheap old car - the tax burden is pretty high.

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