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Old 04-24-2015, 08:45 AM
 
7 posts, read 12,415 times
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Ive tried to do some searching and its quote confusing as to what Im going to have to pay for taxes in AZ in regards to a car.

Right now, I have a 2004 Lexus IS300 that is probably worth somewhere around 7-8k and has never been registered in AZ. Would I use the calculator based on the fact that its a 2004 and the base price or would I use 2015 since that would be the first year it is being registered in AZ?

Thank you for any help clarifying this!
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Old 04-24-2015, 09:02 AM
 
Location: Mesa, AZ (via NY)
163 posts, read 205,674 times
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The amount is going to be based on the current value. It won't be more than a couple hundred but I don't know how to get the exact number.
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Old 04-24-2015, 10:26 AM
 
Location: Sonoran Desert
38,952 posts, read 50,866,357 times
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It does not have a lot to do with what the actual retail value is. They start out at MSRP and then drop it 16% per year. If it is 10 years old that works out to the current value for VLT being about 20% of the base MSRP. The tax is like 4% or so of that amount.
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Old 04-24-2015, 10:27 AM
 
7 posts, read 12,415 times
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Thank you all for your help on this. I paid $40 to ask a tax professional and they are saying the 2004 base price of the car. This could not be more confusing.
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Old 04-24-2015, 10:30 AM
 
Location: Sonoran Desert
38,952 posts, read 50,866,357 times
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Quote:
Originally Posted by su_maverick View Post
Thank you all for your help on this. I paid $40 to ask a tax professional and they are saying the 2004 base price of the car. This could not be more confusing.
I may be wrong in what I told you above. That (16% per year reduction) is for cars continually registered in the state. It may be on the book value for a 2004 if it is your first year. It is DEFINITELY not based on what you paid in 2004. Forget that.
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Old 04-24-2015, 10:38 AM
 
Location: Sonoran Desert
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I got this from ADOT web site:

On this blog, we cannot accurately estimate how much your registration will cost, however, the Vehicle License Tax, which is included as part of the annual fee to register your vehicle, is based on an assessed value of 60 percent of the manufacturer’s base retail price reduced by 16.25 percent for each year since the vehicle was first registered (in any state). From there, the rate is calculated based on the assessed value and date first registered.

So I was basically correct except, and it is an important except, the base price is is discounted to 60 % initially. In your case, if your car cost $40K base new, then today's value for registration is about

20% of $24K or around $5K and your fees will be a couple hundred bucks, if that.
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Old 04-24-2015, 10:51 AM
 
7 posts, read 12,415 times
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Quote:
Originally Posted by Ponderosa View Post
I got this from ADOT web site:

On this blog, we cannot accurately estimate how much your registration will cost, however, the Vehicle License Tax, which is included as part of the annual fee to register your vehicle, is based on an assessed value of 60 percent of the manufacturer’s base retail price reduced by 16.25 percent for each year since the vehicle was first registered (in any state). From there, the rate is calculated based on the assessed value and date first registered.

So I was basically correct except, and it is an important except, the base price is is discounted to 60 % initially. In your case, if your car cost $40K base new, then today's value for registration is about

20% of $24K or around $5K and your fees will be a couple hundred bucks, if that.
Thank you for the detailed help.

So, what I am getting at would be the following.

Initial Base MSRP - $40k (for sanity sake of doing the math)
VLT MSRP Modifier - 60%
Modified MSRP - $24k

Compounded 16.25% reduction per year since first registration of the car.

This would say that the car would be valued at around 3500 right now for tax purposes. At the VLT rate of 2.89 per $100, it would then be $98 in taxes.

Does this math seem right?
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Old 04-24-2015, 11:09 AM
 
Location: Raleigh, NC
19,360 posts, read 27,571,517 times
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If you just paid $40 to a tax guy to figure out what your 2004 vehicle is going to cost in taxes, you probably already paid $40 too much for this expense.
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Old 04-24-2015, 11:53 AM
 
7 posts, read 12,415 times
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Quote:
Originally Posted by Jkgourmet View Post
If you just paid $40 to a tax guy to figure out what your 2004 vehicle is going to cost in taxes, you probably already paid $40 too much for this expense.
Eh, there is more to it. I wanted to know the cost of my current car but also what the cost would be if I bought a collector car as well that had never been registered in AZ. Its initial MSRP was significantly higher than the IS300 lol.
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Old 04-24-2015, 12:07 PM
 
Location: Sonoran Desert
38,952 posts, read 50,866,357 times
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Quote:
Originally Posted by su_maverick View Post
Thank you for the detailed help.

So, what I am getting at would be the following.

Initial Base MSRP - $40k (for sanity sake of doing the math)
VLT MSRP Modifier - 60%
Modified MSRP - $24k

Compounded 16.25% reduction per year since first registration of the car.

This would say that the car would be valued at around 3500 right now for tax purposes. At the VLT rate of 2.89 per $100, it would then be $98 in taxes.

Does this math seem right?
Yup. 2.89 is lower than I thought it was. In any case, 10 year old cars don't cost much. Ask me how I know. haha. You'll have to pay another 25 or so for an emissions test. You will pass unless your car is showing or recently had check engine lights because that is all they check for.
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