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Fairfax County property tax appeal

Discussion in 'Mid-Atlantic' started by Rik, Aug 24, 2014.

  1. Rik

    Rik Member

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    For those in Fairfax County, it's car tax time. Just got my bill and they are assessing my 2010 non-sport at 75k. I am pulling together some CPO and public examples of sales to appeal. Anyone else have (successful) experience in appealing to FFX?
     
  2. Xenoilphobe

    Xenoilphobe Active Member

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    #2 Xenoilphobe, Aug 25, 2014
    Last edited: Aug 25, 2014
    Good luck! Wonder what my 2013 p85 will be assessed?
     
  3. fryfrye

    fryfrye Member

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    My 2013 was assessed at $65,160 not sure I have a leg to stand on for a very well equipped S85...
     
  4. iadbound

    iadbound Member

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    I looked into this issue a little before purchasing the car. Here is what the Fairfax County website says about its assessment process:

    Like all other localities, Fairfax County obtains car values from the Eastern Edition of NADA’s Official Used Car Guide. Specifically, the Department of Tax Administration (DTA) uses the clean trade-in value published in the January edition of the pricing guide. In doing so, DTA uses the base value not including applicable adjustments (i.e., vehicle options).

    DTA will consider adjustments for high mileage, and for condition under appeal
    .


    For new model year vehicles, the assessed value is based on a percentage of MSRP. This is the base-model MSRP, not including options. NADA Guide values are used for subsequent years. Discounting from the MSRP provides a uniform assessment for each class of new model vehicles, and generally provides a reasonable but conservative depreciation curve when compared to the values in next year’s pricing guide.



    Please note the red, italicized text (my emphasis). The NADA guide lists only two models of Model S, the base model and the performance model. Thus, an S85 should be treated as a S60 base model for valuation purposes because the 85 kWh battery is an option for the base model. Also, the information here suggests that Fairfax County does not consider any optional equipment in its valuation. Thus, in theory, the $65,160 reflects the trade-in value of a 2013 Tesla Model S base model with no options.

    Despite the language of the website, it is not entirely clear how Fairfax County is really doing this calculation, and the NADA guide doesn't seem to really have 2013 Model S values -- at least not when I check the website. So either the Model S base model with no options has really held its value, or Fairfax County is just taking a shot in the dark. But who can tell for sure. You might want to call and ask. I would really like to know how they came up with the figure.
     
  5. fryfrye

    fryfrye Member

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    I actually asked -- but have not heard back. But strangely enough, if you use Tesla's own deprecation model on the residual buyback, it gets pretty darn close to the figure that the county used... keeping in mind that it is the value from Jan 1 -- I will post an update if I hear back.
     
  6. scaesare

    scaesare Active Member

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    Interesting thread. I'm in Loudoun County... as I'm putting ~24K miles/yr on the car I may see what depreciation they assign as well...
     
  7. wycolo

    wycolo Active Member

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    In counties that tax based on value it should be pointed out that such tax is fully deductible on IRS Sched A.
    --
     
  8. fryfrye

    fryfrye Member

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    Received the following reply:

    Thank you for your email.

    The method to value automobiles is prescribed under Virginia Code Section 58.1-3503(a)(3). In accord with Virginia law, the values of automobiles for assessment purposes must be from a recognized pricing guide applied uniformly and as of January 1 each year. In certain cases, when an individual model vehicle is not listed in the NADA, the commissioner may select another method which establishes fair market value. Your 2014 value was obtained from the January 2014 Edition of the Black Book CPI (Cars of Particular Interest). Generally, the County will use the “good” value category. However, the CPI did not have a “good” value available. Therefore, the current policy is to use a percentage of the MSRP. In 2014, 90% of the MSRP of $72,400, as reflected in the CPI was used to obtain an assessed value. Uniformity is very important for purposes of taxation, which is why a recognized pricing guide is used.
     
  9. iadbound

    iadbound Member

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    Very interesting on the methodology, except that the MSRP is incorrect, which you may want to point out. It should be $69,900. Maybe NADA won't bother with Tesla values since it's out to get Tesla.:wink:
     
  10. fryfrye

    fryfrye Member

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    Great Catch!
     
  11. iadbound

    iadbound Member

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    Happy to throw gas on the fire if it saves us all a few bucks.:biggrin:
     
  12. fryfrye

    fryfrye Member

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    Received the following this AM:

    Research on the $7,500, indicates that it is a government tax credit, not a reduction to the MSRP. Although the “net effect” might make it seem that way, Tesla and other electric vehicle buyers do not get a $7,500 discount at time of purchase. They pay the full price and receive their tax credit at their next annual tax filing. Regardless of what the vehicle owner paid, the tax is assessed based on the MSRP, not MSRP less discount, rebates, tax credits, etc… The base MSRP’s for each Tesla model in the CPI data set are provided by Tesla and are not created or adjusted by CPI’s editors. Unless Tesla publishes a lower MSRP and provides that information to the vehicle valuation industry (NADA, Kelley, BlackBook, etc.) we must stick with what they currently report.

    While it has been discussed by the Board of Supervisors, currently Fairfax County Code does not provide for a tax reduction or any kind of relief for hybrid or electric vehicles.

    --- Does anyone know how to appeal something aside from milage?

    Jason
     
  13. iadbound

    iadbound Member

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  14. JST

    JST Active Member

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    Interesting--why is the "P" a separate model? I thought that was just an option, as well. Seems like a big artificial tax hit to charge Model S owners on the base price of a 60 unless you order the P, in which case you pay not just for the cost of the P option, but for the "option price" of the 85 kwh battery, as well.


    EDIT: Excluding the tax credit is pretty unfair, since the tax credit has a direct impact on the value of the car post-purchase.
     
  15. wycolo

    wycolo Active Member

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    The State of Wyoming does not include Options in their evaluation. So my base price was determined to be $57k which has NO BATTERY AT ALL. That's the way my window sticker was printed- Tesla listed the 85 battery and the 60 battery both as available options. As if you could simply order a non-running MS. Don't know if the new window stickers are laid out the same way. Bring your window sticker to show assessor!
    --
     
  16. JST

    JST Active Member

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    That's awesome.
     
  17. dave

    dave Member

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    Ugh, dreading my first tax bill in Kentucky... Should wipe out any gas savings completely.
     
  18. Treker56

    Treker56 Member

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    Great intel. The base price MSRP from my sticker was $57,400 and the assessed value after 18 months is $56,160 which is too high! Disputed.
     
  19. DFibRL8R

    DFibRL8R Member

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    #20 DFibRL8R, Sep 8, 2014
    Last edited: Sep 8, 2014
    The price of $57,400 on the sticker for my 2013 S60 is lister as the "Standard Vehicle Price". The NADA MSRP lists $69,900. I'm not sure where they get that number, maybe standard vehicle price plus the 60 kWh battery which is listed on the sticker at 10k. Either way, I plan to appeal to Loudoun County for last year's (2013) assessment which was $85,410 AND this year's assessment which was $58,050.

    The website for Loudoun County states the Prior model year vehicles not listed in the guide are assessed at 75% of the MSRP. That should come out to only $43,050.

     

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