Originally Posted by 419gottaminute
anyone eliborate on this?
It's the "Motor Vehicle Ad Valorem" tax. Go HERE
, read the second paragraph down. Click the link for more info, including how to calculate it. It's sometimes called a "Personal Property Tax" in other states, such as Missouri. In other states, such as Mississippi, this tax is added the the price of the tag fee.
It's an annual tax based on a state-calculated value of your vehicle (somewhere between the wholesale and retail value). The rate varies significantly between different counties and cities, ranging from $15 to $49 per $1000 in assessed value. According to THIS DOCUMENT
(pdf), if you live in rural Dade county a $20,000 vehicle would cost you about $382 per year. The same vehicle would cost a resident of Ft. Oglethorpe (Walker Co.) $618 per year.
The tax drops every year as the value of the vehicle decreases.
TN residents do not pay this tax, either as a separate tax, or as part of the tag.