personal property tax, new car purchase (Roanoke, Staunton: sales, real estate, 2014)

[Rtom45]

If everything goes as planned, my wife and I will be moving from PA. to the Roanoke area this coming fall. My question is this - when we move we know we will have to register our vehicles in Virginia. I assume at this time we will also have to pay personal property tax on those vehicles. We are planning on buying a new car for my wife after we move, from a Roanoke dealership. Will we also then pay personal property tax on the new vehicle? Since PA. does not have a personal property tax, (we have a sales tax), does it make sense to buy a car here before we move?

[CapsChick]

Personal property tax must be paid on all vehicles garaged in Virginia, regardless of where they are purchased. See here for info. It all gets pro-rated based on your move/purchase date.

[vacoder]

Originally Posted by CapsChick

Personal property tax must be paid on all vehicles garaged in Virginia, regardless of where they are purchased. See here for info. It all gets pro-rated based on your move/purchase date.

I think the proration depends on county/jurisdiction. Some counties do not prorate.

[Tony in Roanoke]

Originally Posted by Rtom45

does it make sense to buy a car here before we move?

The sales tax on a vehicle purchase in VA is 3%, in PA it is at least 6% and I believe as high as 8% in Philly. That should be your focus point, not property tax.

[emsman]

My advice would be to sell the car in PA before you move if your getting a car right away in VA. Here's why; you can use the money for a down payment on the new car and skip the taxes on the car you would have brought down. Virginia assess the property tax on every vehicle you own as of January 1st of every year, so you get a lower tax on the new car because you won't "own" it in Virginia's eyes until January 2013, which gives the new car time to depreciate slightly.

In short, you will own it for a few months before it's assessed in 2013 at a lower, depreciated rate because it's a year older. You'll skip the hassle of having to pay to change the car from PA and then pay taxes and registration for the new one.

Rough idea w/ no trade-in based on $25,000 car; sales tax-$350, tags-$36.50, processing fee- up to $200 depending on dealer. Again, these are not exact numbers and some independant cities charge an additional sales tax. I don't know if Roanoke does, but I know Staunton,VA does, got caught there w/ my truck purchase.

[Tony in Roanoke]

Originally Posted by emsman

$25,000 car; sales tax-$350.

Is that right? 3% tax on $25,000 is $750, yes?

The sales tax is often larger than the savings on a sell and buy.

[md21722]

For vehicle purchases, the Virginia sales tax is 3%. Personal property tax is NOT paid at the time of purchase. You will get the bill at roughly the same time as your real estate property tax bill. When you first bill is due depends on how the city or county collects personal property tax. Some have you pay the entire bill once a year and split it up into two payments. Some cities and counties prorate property tax while others do not.

Whether or not it makes sense for you to purchase in PA before you move depends on the exact situation. The sales tax for cars in VA is 3% and in PA is 6%. On a $30,000 that is a difference of $900. However, buying a car in the fall means you'll have to pay taxes on it in 2013 because you will have owned it as of 1/1/13. If the property taxes will be < $900 then it makes sense to buy in the fall. If you delayed your purchase until 1/2/13 you will not be assessed any taxes until 2014 and you would do even better.

If you're buying a house or itemizing your deductions on your federal taxes, don't forget that the personal property tax is deductible.

[Life'sABeach]

VA has a personal property tax AND sales tax. And from what I can tell so far, their rates for property tax are outrageous. That's my only complaint so far.

When we licensed and registered our two cars and one motorcycle, we paid about $400 to the DMV (that included driver's licenses, too). Then a month or two later, I got a bill for two months of property taxes for 2011.

[Kreutz]

Originally Posted by Life'sABeach

VA has a personal property tax AND sales tax. And from what I can tell so far, their rates for property tax are outrageous. That's my only complaint so far.

When we licensed and registered our two cars and one motorcycle, we paid about $400 to the DMV (that included driver's licenses, too). Then a month or two later, I got a bill for two months of property taxes for 2011.

In NY its called a registration fee. its all about getting your $.

VA seems to be double taxation, I dont forsee it being eliminated anytime soon, doubt any politician has the guts for it.

[Carl Becker]

Let me make sure I fully understand this VA tax situation...I have a 2009 Toyota RAV4.....i am taking it with me to VA...All though I have already paid Texas Sale Tax on the auto when I purchased it in Texas in 2009, are you saying that VA is going to charge me taxes again?....iF so, I hope they charge me taxes for what the car is actually worth now (2 1/2 years older)...These tax people in VA collect every penny they can legallky collect...Wonder if all the poeplke they have on their payroll collecting taxes bring in enough tax money to pay their salaries?

Ben Bolt