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Old 09-10-2016, 10:11 AM
 
Location: Somewhere Out West
2,260 posts, read 2,131,561 times
Reputation: 1902

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Does anyone know how they calculate the value of an automobile for the purposes of determining what your ownership tax is supposed to be?

I ask because we went to register our vehicle, purchased new in January in another state when we lived there. The value they used was $2400 higher than MSRP and $5,200 than trade-in value per Nada guides.

We didn't register the vehicle as a result of this discrepancy and are unsure how we can challenge this? Knowing the source they use for valuation will help us.

Thank you.
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Old 09-10-2016, 05:07 PM
 
11,256 posts, read 43,208,400 times
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"taxable value" is calculated at 85% of the MSRP for a passenger vehicle. Once calculated, that figure stays on the registration paperwork for the life of the Colorado registrations. MSRP is the only figure that enters into the registration fees ... trade or loan value or any other figure is not used.

Where you had such a large discrepancy for the MSRP of your vehicle, perhaps it was misindentified by the clerk handling your application.

I'd go back to DMV with your documentation of the specific yr/make/model and options on the car you bought AND any paperwork you have showing MSRP figures on it. Perhaps you have the "window sticker" breakdown sheet of the new vehicle you purchased, which might help clarify the valuation?

Keep in mind that what you paid for the vehicle is not the issue for annual ownership tax valuation purposes.
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Old 09-11-2016, 06:53 AM
 
Location: Somewhere Out West
2,260 posts, read 2,131,561 times
Reputation: 1902
Thank you. Clearly the clerk made a mistake. I am taking a copy of the Jeep.com price and build sheet to show that they have the value wrong. If the taxable value is 85% of MSRP, then they have our taxable value at 20-20% more than it should be. She must have entered the wrong model.
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Old 09-11-2016, 08:12 AM
 
Location: Washington Park, Denver
6,905 posts, read 6,499,225 times
Reputation: 7355
Quote:
Originally Posted by revrandy View Post
Thank you. Clearly the clerk made a mistake. I am taking a copy of the Jeep.com price and build sheet to show that they have the value wrong. If the taxable value is 85% of MSRP, then they have our taxable value at 20-20% more than it should be. She must have entered the wrong model.
Wish you the best of luck, but they don't drill down to the specific options on your individual car. The number is fixed for your model, that's it.

I will be interested to hear how this ends up turning out.
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Old 09-11-2016, 12:56 PM
 
Location: Austin, Tx
316 posts, read 774,299 times
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Is the 85% of MSRP then depreciated in the following years?

i've read elsewhere that the tax rate is 1.79% and that the average vehicle tax is $412 per year. Is that about right? TIA.
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Old 09-11-2016, 03:54 PM
 
11,256 posts, read 43,208,400 times
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Quote:
Originally Posted by pjoseph2 View Post
Is the 85% of MSRP then depreciated in the following years?

NO. Once that taxable value base has been assigned to a vehicle, that value remains the same as long as the vehicle is registered in Colorado.

What does change is the tax rate applied to that valuation as the years go by. It does get lower, but after a certain time frame, it reaches the bottom of the scale minimum rate which will be the rate from that point on.


i've read elsewhere that the tax rate is 1.79% and that the average vehicle tax is $412 per year. Is that about right? TIA.
NO. You'll need to visit with the county DMV in which the vehicle is registered to get their estimates.

My older MB's and BMW's and Subie's were at the bottom of taxable valuation and weight charges, with the MB's coming in a $130/year and my Subie's under $100/year. Weld County.


PS: MSRP options can be a big factor in taxable valuation. A "base" model would have an assigned valuation, but add in trim packages, performance packages, engine upgrades and similar "packs" and it wouldn't be unusual for the MSRP valuation of a vehicle to go up by many thousands of dollars. You could easily option up a Toyota, for example, to close to it's upline family marque in price. Or buy an F-150 and put a larger engine package in it with upline interior/wheels/audio system pack ... and easily increase the MSRP valuation of the vehicle quite a bit.

Conversely, a person that buys the base line "stripper" truck doesn't want to be paying the MSRP value of the upline delivered models of the same model range. (an F-250 with the base engine isn't the same value vehicle as one with a Powerstroke diesel engine, for example ... both could be an "XLT" designated model with far different MSRP's as delivered). Unless you're buying the "top of the line" vehicle which is spec'ed with all the "bells and whistles" to a point where it effectively has no options except color combination, there's a huge difference to be found in the valuation of cars within a given model line from a manufacturer. A quick walk through a dealer's lot will show you those differences in the vehicles as spec'ed and priced on the window stickers.
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Old 09-12-2016, 07:12 PM
 
Location: Somewhere Out West
2,260 posts, read 2,131,561 times
Reputation: 1902
Quote:
Originally Posted by sunsprit View Post

PS: MSRP options can be a big factor in taxable valuation. A "base" model would have an assigned valuation, but add in trim packages, performance packages, engine upgrades and similar "packs" and it wouldn't be unusual for the MSRP valuation of a vehicle to go up by many thousands of dollars. You could easily option up a Toyota, for example, to close to it's upline family marque in price. Or buy an F-150 and put a larger engine package in it with upline interior/wheels/audio system pack ... and easily increase the MSRP valuation of the vehicle quite a bit.

Conversely, a person that buys the base line "stripper" truck doesn't want to be paying the MSRP value of the upline delivered models of the same model range. (an F-250 with the base engine isn't the same value vehicle as one with a Powerstroke diesel engine, for example ... both could be an "XLT" designated model with far different MSRP's as delivered). Unless you're buying the "top of the line" vehicle which is spec'ed with all the "bells and whistles" to a point where it effectively has no options except color combination, there's a huge difference to be found in the valuation of cars within a given model line from a manufacturer. A quick walk through a dealer's lot will show you those differences in the vehicles as spec'ed and priced on the window stickers.
A base model MSRP was not used as that is what we own. Manual transmission, manual windows, no A/C etc. It is thousands less than what they based it on.
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Old 09-12-2016, 10:10 PM
 
11,256 posts, read 43,208,400 times
Reputation: 14905
Quote:
Originally Posted by revrandy View Post
A base model MSRP was not used as that is what we own. Manual transmission, manual windows, no A/C etc. It is thousands less than what they based it on.
Sounds like you have the information in hand to go back to the county clerk for a proper MSRP valuation of your vehicle. Good luck.
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Old 10-26-2016, 04:34 PM
 
Location: Somewhere Out West
2,260 posts, read 2,131,561 times
Reputation: 1902
Sorry I forgot to update this thread with what happened. Along with our application for registration I took in the bill of sale and a print out from the manufacturer showing the MSRP of our vehicle. The clerk initially said but... then I protested and said their system was wrong. She disappeared in the the county recorder's office and came out saying they were to override what was in the computer.

By her correcting the MSRP of the vehicle our OWN tax went down by $90.

Yeah for common sense.
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Old 10-26-2016, 08:36 PM
 
Location: Washington Park, Denver
6,905 posts, read 6,499,225 times
Reputation: 7355
Quote:
Originally Posted by revrandy View Post
Sorry I forgot to update this thread with what happened. Along with our application for registration I took in the bill of sale and a print out from the manufacturer showing the MSRP of our vehicle. The clerk initially said but... then I protested and said their system was wrong. She disappeared in the the county recorder's office and came out saying they were to override what was in the computer.

By her correcting the MSRP of the vehicle our OWN tax went down by $90.

Yeah for common sense.
Nice! Good to know.
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