RuskiTrombone Posted January 6, 2006 Share Posted January 6, 2006 Received my auto property tax today. Government estimates my trade in value for my car is 27,000 so I got taxed on that amount. I purchased my car a few months ago for 22,000. Guess this is what is confusing me. Why am I paying taxes on 27K when I wouldn't get anywhere close to that if I went to go sell my car right now. If someone were to purchase a brand new Subaru Legacy GT limited right now they can get one for less than 27K. Damn the man. I blame it on Bush. Link to comment Share on other sites More sharing options...
PGT Posted January 6, 2006 Share Posted January 6, 2006 Bush?? It's a VA thing...blame the legislature. I believe you can take a copy of the original sales paperwork and get a new valuation at the county tax office. They may also go off Blue Book, in that case, you are screwed. It's what the property is valued at, not what it cost your nor replacement cost either. Link to comment Share on other sites More sharing options...
RuskiTrombone Posted January 6, 2006 Author Share Posted January 6, 2006 I go with everyone now and blame Bush for everything. Its the cool stupid thing to do. The fairfax property tax booklet says I can contest it but they get their values from NADA trade in values which I know are always very high. They account for 110% to value over what KBB would put it as. I always find it amuzing when people come in to sell me their cars with NADA values in mind. Link to comment Share on other sites More sharing options...
jlce88 Posted January 6, 2006 Share Posted January 6, 2006 That's why it's called a "Commonwealth" and therein lies one reason (other than traffic) that I changed residence as soon as possible when I joined the military and got back stateside. I got hosed b/c they taxed my 90 Legacy wagon at blue book value instead of what I bought it for, which was $900. VA really hosed me too as they were charging me personal property taxes and I had to get a Prince William County sticker when I lived in Germany!!! I didn't drive my car one minute in VA or the US for that matter for three years and they still made me pay. When I joined the Army, I went overseas out of basic and didn't have a chance to get a different states address and boy did I pay for it. I'm still p/oed about that after 15+ years. Sorry about your luck and I'm sad to hear that they're still bending residents over, but hey, Fairfax county has the largest school bus fleet in the US. Link to comment Share on other sites More sharing options...
Opie Posted January 6, 2006 Share Posted January 6, 2006 I always wondered how state's charged you a tax based on the car's worth every year...it would seem to me that the 2nd year you shouldn't be able to be taxed on the same thing again....unless they reduced the tax amount by the amount paid the year before... Of course I'm taxed on my property's (home) value each year...so I guess it's the same type of thing... Glad I only pay $45 per year for my Florida tag (it's a Specialty Plate too!) as they charge per year by the vehicle's weight....(impact on the roadway). Of course are road are over-crowded, poorly maintained and suck in general... Link to comment Share on other sites More sharing options...
PGT Posted January 6, 2006 Share Posted January 6, 2006 The tax goes to the local government. The state VA has 75% reuimbursement, meaning they cover 3/4 of the actual tax and the owner pays 25% of what they did just a few years back. I remember stroking a check to Fairfax for $1K on my '98 Accord. Loudoun County, where I live now, charges the tax in two installments....every six months. So, $175 or so twice a year. Not too bad, compared to what was in place five years ago. Link to comment Share on other sites More sharing options...
jlce88 Posted January 6, 2006 Share Posted January 6, 2006 Well that is better than before, but I'm still a visitor only to that state. Me mum and brothers still live up in Manassas and Winchester and I have to pass through to visit the in-laws in Maryland. Link to comment Share on other sites More sharing options...
RuskiTrombone Posted January 6, 2006 Author Share Posted January 6, 2006 I think military gets some kind of exemption. I read through something of sort in the booklet when searching where they got the estimate for $27K. PGT how were you charged 1K on a 98 accord?!? Was there some sort of mistake? Many local residents own properties in other states like Florida and you see alot of cars around here with Florida plates. My rents recently purchased a condo on the ocean so I figure they will be registering their cars there by next year. Link to comment Share on other sites More sharing options...
Whitestar Pilot Posted January 6, 2006 Share Posted January 6, 2006 Wow. In Oklahoma, businesses have to pay tax on assets, but not individuals (except for real-estate). Link to comment Share on other sites More sharing options...
PhilT Posted January 6, 2006 Share Posted January 6, 2006 Wow. In Oklahoma, businesses have to pay tax on assets, but not individuals (except for real-estate). No such thing in Canada either, but we do get shafted in a multitude of other ways e.g Income tax 40%, Sales tax 15% Double Award Winning Legacy GT Wagon Link to comment Share on other sites More sharing options...
elpete77 Posted January 6, 2006 Share Posted January 6, 2006 Never heard of auto property tax, isn't that what registration fees are for? Do they tax your clothes too? Jewelry? Where will it end? All the professonal atheletes will have to sell their 90 carat diamond earrings and 15 lb gold necklaces! Link to comment Share on other sites More sharing options...
Guest *Jedimaster* Posted January 6, 2006 Share Posted January 6, 2006 Move. Link to comment Share on other sites More sharing options...
PGT Posted January 6, 2006 Share Posted January 6, 2006 PGT how were you charged 1K on a 98 accord?!? Was there some sort of mistake? Nah....that's what it cost back then. Check your tax statement - it shows how much the state paid on your behalf as part of former Gov. Gilmore's pledge to abloish the car tax. They almost did....but the legislature stopped the final cut, thus the current burden on you at 25% of the original amount (with the state covering 75% paid to the county). I always wished they would kill it and raise the sales tax .5% in exchange. I hated paying a huge amount in one lump sum. I believe it was only for cars valued over a certain amount....$10K or something. Link to comment Share on other sites More sharing options...
PGT Posted January 6, 2006 Share Posted January 6, 2006 Move. VA is fiscally responsible. No financial woes here with the state gov't. Plus, unemployment is far lower than most places in the country and the salaries are high. If only it didn't cost $550K for .06/acre and a townhouse an hour from DC. Link to comment Share on other sites More sharing options...
Guest *Jedimaster* Posted January 6, 2006 Share Posted January 6, 2006 Yup- I've thought about moving to VA because I have family there, but the land prices are off the charts. Link to comment Share on other sites More sharing options...
PGT Posted January 6, 2006 Share Posted January 6, 2006 They have actually settled back down over the last six months. Now is a great time to buy, as the prices won't be dropping and will only head back up. Link to comment Share on other sites More sharing options...
wukindada Posted January 6, 2006 Share Posted January 6, 2006 Ruski...I thought you were moving to FL? We do not have such a silly Tax...Nor......a State income Tax:) If you stay away from the coastal areas of FL the cost of living is very reasonable too;) Toyota 6EATS .........SUCK!!!!!! Link to comment Share on other sites More sharing options...
rallispec Posted January 6, 2006 Share Posted January 6, 2006 I agree, now is probably the the time to buy, but i couldnt even come close to affording a house right now... As it is, renting is taking everything i've got.. Link to comment Share on other sites More sharing options...
NHLEG Posted January 6, 2006 Share Posted January 6, 2006 I remember when I moved to NH and registered my car for the first time. NH is one of the few States without an income or sales tax so I was surprised when the lady asked for a check for a couple hundred bucks. I asked her, "Does NH have an excise tax?" (like ME does and I had just moved from there). She said, "No, it's not an excise tax, it's a users fee." What??? Link to comment Share on other sites More sharing options...
IwannaSportSedan Posted January 6, 2006 Share Posted January 6, 2006 If you walk, I'll tax your feet, because I'm the TAX MAN! Great Beatles song, there. Even when they don't call it a tax, they still soak you. I'll bet most people don't have any idea (I probably have no idea) how much money the government soaks out of the economy. Most people don't think of the government as a COST to the country. I am not saying that it is entirely an unwarranted cost, but it seems like all levels of government have gotten far too money hungry, as social programs far outstrip the more basic and appropriate purposes of government. Like my grandad always said... The government never earned a dollar in it's life. It just takes yours. (2.6 Trillion of them this year, in just the Federal Govt. alone.) Link to comment Share on other sites More sharing options...
RuskiTrombone Posted January 6, 2006 Author Share Posted January 6, 2006 Ruski...I thought you were moving to FL? We do not have such a silly Tax...Nor......a State income Tax:) If you stay away from the coastal areas of FL the cost of living is very reasonable too;) Fiancee and I decided to stay in Northern VA. The work possibilities once I graduate are endless. I can stay at my current position as part time to make extra money to pay my property taxes and purchase toilet paper when needed. All the family is here as well so we have someone to drop the kids off with when we want alone time. There are many more reasons but those were the most important. Link to comment Share on other sites More sharing options...
PGT Posted January 6, 2006 Share Posted January 6, 2006 I agree, now is probably the the time to buy, but i couldnt even come close to affording a house right now... As it is, renting is taking everything i've got.. I thought so too...but, owning is cheaper than renting. The interest is deductible - that's about $3-500/month in savings. I bought before I thought I was 'ready' and I'm thankful every day since. Within a year, I was able to refi with 20% equity, which helped my payments come WAY down. It actually costs you more to wait if you think about it. Buy now and lock in the price while it's settled down a bit. Houses are staying on the market longer in NoVA, which means people are willing to be more flexible (i.e. pay your closing costs). Link to comment Share on other sites More sharing options...
RuskiTrombone Posted January 6, 2006 Author Share Posted January 6, 2006 PGT is correct. Buying is so much more financially smarter. Think of how much people had made of appreciation alone. When you buy make sure you lock in your rate. We might be witnessing some higher interest rates in the near future and you don't want to be stuck paying 10% interest on a house. I only wish I had purchased something 5 years ago. Link to comment Share on other sites More sharing options...
rallispec Posted January 6, 2006 Share Posted January 6, 2006 i've got to talk with somebody who knows finances, and can give me accurate representation of what i'd be looking at as far as monthly payments go for a mortgage--- But i have a feeling that even the cheapest townhomes are out of my reach, at least until after I'm married next summer and my fiance (then wife) has a full time job and we're both bringing in income.. i dont want to stick myself in a sitation where i'm going to be screwed down the road if anything were to happen to us and I've got nothing to fall back on. anyhow.. this is a discussion for another day... and i heard that the tax deduction on house payments may be going the way of the dodo... anyone else remmeber hearing that? Link to comment Share on other sites More sharing options...
PGT Posted January 6, 2006 Share Posted January 6, 2006 I disagree on the fixed interest loan, but we are getting off-topic. Unless you are planning on staying in the house you buy more than 5-7 years (unlikely for us), you are throwing money away. Case: A 5/1 ARM at 4.25%. 4.25% for the first five years, then a max increase of 1% in rate each year after (assuming the rates go up. So worst case, in year eight, you are paying 7.25%. Given a fixed rate today of about 5.5%, you'd be saving money for the first 6-7 years, which would help someone 'on the fence' get into a house now vs. later. By the time you need to refi, you have equity which changes the financials. Link to comment Share on other sites More sharing options...
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