Cars - Who is Tax-Friendly?? (Manchester, Nashua: sales, lease, vehicle registration)

[WinterWonder]

I am having trouble understanding this article (click on link below) which analyses the best and worst states in which to own a car, based on all expenses (sales tax, hidden fees, excise taxes, etc.)

Tax-Friendly Places to Buy a Car - Kiplinger.com

What I don't understand is why it says NH is one of the worst, that over a 5 year period, I'd actually pay more in NH ($2,045) than in MA ($1,104)??

I just don't understand. MA has 5% sales tax, and a higher yearly auto excise tax than NH...

Can anyone adverse in these tax laws explain why the article claims what it does?

Thanks!
Winter Wonder

[nicolem]

I would like to know where they get their facts from. $2045 seems a little huge for a car-maybe a big truck? Even then-

I have lived in Nashua, Penacook and now Laconia. My five years on the same car have never even come close to that amount. I am unsure about small towns.

I have a 2007 Camry and my state and city registration was less than 500 brand new-maybe in the 300's- I cannot remember-will have to look it up.. Your registration goes down as your car gets older so there is no way that I would ever get to that. Concord even raised their registration a year or two ago to help pay for the parking garage and there is no way I could ever come near to paying that much in 5-years.

I know it is based on weight. Maybe a huge heavy Escalade or something.

The sales tax alone from the Mass car and the excise tax should make MA higher. This figure just does not seem correct.

[nicolem]

I will add- I thought- that in addition to higher insurance rates- I thought a higher Mass excise tax is why people on the border and in second homes try to illegally register their cars here.

[casualobserver]

Here's a cut n' paste from the City of Manchester website. For the $20,000 Camry, I calculate a 5 year tax of $1,325. I don't know annual Mass fees off the top of my head, but if you start out with a 5% sales tax of $1,000..........




City of Manchester, NH Registration Permit Fees

The City permit fee for registration is based on the vehicle model year, the original factory list price of the vehicle, and the expiration date. For a new registration, the model year determines which tax rate ($18, 15, 12, 9, 6, or 3 dollars per $1,000 of original list price) is used to compute the City permit fee. For example, a 2008 model year is charged $18 per thousand; a 2007 model year is charged $15 per thousand, etc. The number of months for which a new vehicle will be registered is determined by either the vehicle owner's month of birth or an assigned month if the owner is a business or lease company. Generally, a new vehicle cannot be registered for less than five months or more than sixteen months. The authority to charge this fee is stated in (RSA 261:153) Fees for Registration Permits


Top (broken link)What Is The State Fee?


Generally, the State motor vehicle registrations fees are calculated based upon weight. Motor vehicles that weigh between 0 and 3000 pounds are charged $25.20/year ($2.10/month); between 3,001 – 5,000 pounds is charged $37.20/year ($3.10/ month); 5,001 – 8,000 pounds are charged $49.20/year ($4.10/month); and 8,001 – 73,280 pounds are charged $.84 per hundred pounds gross. The authority to charge this fee is stated in (RSA 261:141) Fees to be Collected.

Top (broken link)

[OCCASparky]

And don't forget kids, that tax is deductible from your federal returns.

[bryfry]

Thanks for shedding some light on this. Newcomers, like me, need to know this stuff! Thanks.

[Merjolie8]

We are newcomers also and just got an 08 Subaru Forester X (the cheapest one, less than $19,000). We were hit with a registration fee at out town of $491 plus $96.50 at DMV. According to this, the 2,000 figure for 5 years seems accurate to me.

[MissingAll4Seasons]

I checked out that site and their data is all whacked out... in all the states I've lived in, the only one they got even close to right was Alaska (maybe North Carolina). Virginia is so far off I almost choked on my drink - ok, maybe if you lived in the boon docks of southern VA your taxes for 5 years might be less than $1k; but when I lived in NoVa my annual taxes and fees were easily $300 a year on a piece of junk car that was 5 years old... heck, I paid less in Texas where I bought it and registered it for the 5 years previous. Someone's data is not accurate!

[OCCASparky]

Originally Posted by Merjolie8

We are newcomers also and just got an 08 Subaru Forester X (the cheapest one, less than $19,000). We were hit with a registration fee at out town of $491 plus $96.50 at DMV. According to this, the 2,000 figure for 5 years seems accurate to me.

And pray tell, what was the sales tax for that car?

In MA, it would have been $1000.

[buck naked]

we don't have a sales tax....


I pay roughly 500 a year for registration, but my car is heavy. It is convertible. This year it is 4 years old, so the registration was a little less. $400 including the state portion. So $2000 seems to be right on.