Auto Tax (credit card, how much, purchase)

[ajzjmsmom]

I searched the forums before posting this but I needed to see if someone could either answer my question or direct me to a website. I need info on the tax that VA has on automobiles. I know from what I hear it is pretty substantial but since the only thing we pay here in NM is a tax with the initial purchase and then for registration either once a year or every two years we pay nothing else. Could someone please explain to me how this tax works, if it is paid at one time during the year or if it it taken out of a paycheck like your state taxes? Do you also have to do the registration once a year in addition to this tax? I apologize in advance if there was already a post about this and if it sounds unintelligent on my part for not understanding this. Thanks

[becwells]

I'm pretty sure that the only automobile tax incurred is paid at time of purchase. I've never seen anything or been asked to pay any auto tax - all we pay is our yearly registration.

I could be wrong though...anyone else?

EDIT: Do you mean Personal Property taxes?? If so, it depends on your county. We live in Loudon county, and we pay $4.20 per $100 of assessed value - if our car is worth $16k, we pay about $640 a year. I think we pay it every 6-months, but you may have the option to pay yearly. It comes as a separate bill - it does not come out of our paychecks.

[oneasterisk]

They normally charge a % of the value of the vehicle:

PWC - Personal Property Tax Information

It's paid one time, mine is due around October and coincides with the county sticker.

Registration is either annual or every two years, you decide. I do it for every two years just to save the hassle, plus if you live in certain counties you also have to do emissions inspection every time you do registration.

Commonwealth of Virginia Department of Motor Vehicles

[fdeitz]

The exact rate of the personal property tax varies by county or locality. At least in most of the counties around here - the personal property tax is due on October 5 and is paid directly to the locality at that time by personal check (or credit card can be used where I am but I think they charge a small fee). It probably averages 4% of the value of the car and the tax on the first $20,000 is further reduced by 70%. On a fairly new car it could be $200 or more.

The state does have a registration fee for cars - but it is low compared to the personal property tax.

Most localities also require you to display a county or city sticker - and there's something like a $15 or $25 fee for that each year. It is paid the same time as the personal property tax and usually the new ones need to be displayed by November 15.

There may be some website that explains all this - but since the personal property tax varies by locality you would have to go to that locality's website for details. Usually they will have a heading that says Personal Property Tax. It is not only on cars but things like boats, campers, etc.

[ajzjmsmom]

Originally Posted by becwells

I'm pretty sure that the only automobile tax incurred is paid at time of purchase. I've never seen anything or been asked to pay any auto tax - all we pay is our yearly registration.

I could be wrong though...anyone else?

EDIT: Do you mean Personal Property taxes?? If so, it depends on your county. We live in Loudon county, and we pay $4.20 per $100 of assessed value - if our car is worth $16k, we pay about $640 a year. I think we pay it every 6-months, but you may have the option to pay yearly. It comes as a separate bill - it does not come out of our paychecks.

yep, thanks that was what i needed, it is called the luxury tax is that correct?

[fdeitz]

Originally Posted by ajzjmsmom

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yep, thanks that was what i needed, it is called the luxury tax is that correct?

I've never heard it referred by that term. Personal Property Tax is the correct term. Also, again for the value up to $20,000 - while as one poster said it may be taxed at 4.2%, per legislation passed some time ago there is a 70% discount of that tax. For the amount OVER $20,000 - it is indeed taxed at the full rate. So for the example given, the tax would NOT be $640 but would rather be 30% of that or $192.

[ajzjmsmom]

Originally Posted by fdeitz

I've never heard it referred by that term. Personal Property Tax is the correct term. Also, again for the value up to $20,000 - while as one poster said it may be taxed at 4.2%, per legislation passed some time ago there is a 70% discount of that tax. For the amount OVER $20,000 - it is indeed taxed at the full rate. So for the example given, the tax would NOT be $640 but would rather be 30% of that or $192.

How do they determine the value of the vehicle? We don't have new ones do they use Kelly Blue Book? So if I am understanding you correctly if you do not have one valued over $20,000 then it is not taxed as high. I think KBB has my car valued at $5500. If this is the case then I will cease freaking out about this tax. I was kinda freaking out since I have never lived anywhere they had this.

On another note how do they determine how much you pay for registration for your vehicle? I know here in NM ours is very low, for the car I mentioned we only pay $37 a year. I know in Texas it was higher.

BTW thanks for taking time out of your day to answer my questions. I looked on PWC's website but they didn't really give any more info other than you had to pay the tax and when it was due.

[sls76]

Originally Posted by ajzjmsmom

How do they determine the value of the vehicle? We don't have new ones do they use Kelly Blue Book? So if I am understanding you correctly if you do not have one valued over $20,000 then it is not taxed as high. I think KBB has my car valued at $5500. If this is the case then I will cease freaking out about this tax. I was kinda freaking out since I have never lived anywhere they had this.

On another note how do they determine how much you pay for registration for your vehicle? I know here in NM ours is very low, for the car I mentioned we only pay $37 a year. I know in Texas it was higher.

BTW thanks for taking time out of your day to answer my questions. I looked on PWC's website but they didn't really give any more info other than you had to pay the tax and when it was due.

They use the NADA value.

PWC - Personal Property Tax Information

http://www.nadaguides.com/usedcars.a...item=270667572

[oneasterisk]

Originally Posted by ajzjmsmom

On another note how do they determine how much you pay for registration for your vehicle? I know here in NM ours is very low, for the car I mentioned we only pay $37 a year. I know in Texas it was higher.

Here are the fees in PWC, what locality are you looking for? We may be able to give you more specific numbers. I keep giving PWC info, since that's where I live.

http://www.dmv.virginia.gov/webdoc/citizen/fees.asp

[novahousehunter]

It is annual.
The first 1000 of your car is exempt (my last car was worth under 1K so I didn't have to pay it).
I think it is for most over 100 and under 500, though of course it depends on the worth of your car.
If you don't agree with the assessment you can contest it. I used to have a truck that I bought for 3500 and they kept assessing it at 12K year after year. You send in some documentation.

I've never lived in any other state that did this.