How the used-car price spike affected tax assessments in Virginia

E

ekrampitzjr

Joined
Mar 23, 2003
Messages
1,954
Location
Hopewell, Virginia, USA
After the crazy price spikes for used vehicles over the last few years, things appear to be getting back on track based on the tax assessment I just received on my 2011 Ford Ranger. Virginia localities impose a personal-property tax annually on vehicles, with exceptions for those of negligible value. The assessments are based on KBB and other sources. Mileage normally is not a direct factor, only age, but an assessment can be appealed based on mileage and vehicle condition.

I noticed that the tax amount was significantly lower when the bill came in the mail yesterday, so I checked. Last year the locality warned that everyone's vehicle tax was going higher because of KBB values. It wasn't kidding. This year things look different.

Thought some of you might be interested, especially if you might be looking for a used vehicle soon..

Bought this truck in spring 2021
Late 2021 assessment: $7,150
Late 2022 assessment: $9,150, which is a $2,000 jump from 2021
Late 2023 assessment: $6,975, which is a $2,175 drop from 2022 and just below the 2021 assessment

The Edmunds site gives the purchase value of the truck (dealer purchase from me or trade-in value) as $6,000, by comparison, but I believe I could get significantly more if I wanted to sell it myself. That site bases values partly on mileage. No, my Ranger is not for sale. :LOL:
 
That's wild they base it on actual value, AZ just reduces the tax 16.25% a year.

A vehicle license tax is included as part of the annual fee to register your vehicle. It is based on an assessed value of 60percent of the manufacturer’s base retail price reduced by16.25 percent for each year since the vehicle was first registered in Arizona (15% before 8-1-98).From there, the rate is calculated based on the assessedvalue. $2.80 per $100 of assessed value for new vehicles and $2.89 per $100 for used vehicles.
Click to expand...
 
b_b said:
wait... you have to pay a tax every year for a product that you paid taxes on when you purchased?
Click to expand...

Yes, we get to pay 5% sales tax when purchasing a vehicle and then 4% every year thereafter. I paid about $3200 in personal property taxes this year for my vehicles. My locality only taxes what is owned on January 1, so I try to time my vehicle purchases to give myself an extra year of tax free (ie, January purchase...). Some localities tax for the entire year, regardless of when the vehicle was purchased.

Luckily, my locality (small, rural) has been adjusting tax rates to account for the increased vehicle values so that our bills don't increase.
 
ekrampitzjr said:
After the crazy price spikes for used vehicles over the last few years, things appear to be getting back on track based on the tax assessment I just received on my 2011 Ford Ranger. Virginia localities impose a personal-property tax annually on vehicles, with exceptions for those of negligible value. The assessments are based on KBB and other sources. Mileage normally is not a direct factor, only age, but an assessment can be appealed based on mileage and vehicle condition.

I noticed that the tax amount was significantly lower when the bill came in the mail yesterday, so I checked. Last year the locality warned that everyone's vehicle tax was going higher because of KBB values. It wasn't kidding. This year things look different.

Thought some of you might be interested, especially if you might be looking for a used vehicle soon..

Bought this truck in spring 2021
Late 2021 assessment: $7,150
Late 2022 assessment: $9,150, which is a $2,000 jump from 2021
Late 2023 assessment: $6,975, which is a $2,175 drop from 2022 and just below the 2021 assessment

The Edmunds site gives the purchase value of the truck (dealer purchase from me or trade-in value) as $6,000, by comparison, but I believe I could get significantly more if I wanted to sell it myself. That site bases values partly on mileage. No, my Ranger is not for sale. :LOL:
Click to expand...

If it is assessed at 9k what would the taxes be? What would be the taxes on a 60k or 100k car
 
I think people are missing that our "registration fee" is 30 bucks a year. Many states don't charge a personal property tax on a vehicle but they have 500 dollar a year registration fees.
I just paid 102 bucks at the DMV for a set of new plates with 3 year stickers.

And, the state doesn't do this, it simply says it is legal for counties to do it...so they ALL do it, some have different rates than others. I have vehicles "garaged" in 2 different counties because I own property in 2 counties. One charges 3.50 per 100 of value and one charges 5 bucks per 100.
 
raaizin said:
If it is assessed at 9k what would the taxes be? What would be the taxes on a 60k or 100k car
Click to expand...
depends on where you live, this is not a state tax, this is a county tax.
It can be over a grand on a higher end new car. One place I pay is 3.50 per 100 and one is 5.00 per 100
 
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