is California updating license fees correctly? question for new owners

[Lunares]

New owners in California, what's your VLF? For those who don't know, Vehicle License Fee or VLF is a percent of value property tax you pay yearly on your car.

It is supposed to update based on value of the car. But my P3D is now 'worth' 62k new instead of 79.5k new like when I bought and i don't believe the DMV is updating properly.

My VLF this year is $471 ($739 total). What's yours as a new (P3D) owner?

 

[SSedan]

I would bet they depreciate it a certain percentage per year, going by KBB or the like across a thousand models and trim levels would be a nightmare. Then again as idiotically as Cali does everything else.........

 

[Lunares]

I would bet they depreciate it a certain percentage per year, going by KBB or the like across a thousand models and trim levels would be a nightmare. Then again as idiotically as Cali does everything else.........

I believe you are correct but wonder if there is a way to protest

Seems crap to have 79.5k listed as my purchase price when it's now 63k for the same exact car. that's about $100/yr

 

[SSedan]

But if they are depreciating the purchase price every year it is fine. The purchase price baseline being listed isn't bad.

I would look into if they depreciate or maybe the Tax rate falls a little with each year of age 5% year one 4.75% year two etc. Not actual number just saying there are a few ways to accomplish the same thing.

 

[cpa]

Generally, personal property in California is taxed at 1% of the fair market value. The Board of Equalization has a depreciation schedule that the county assessors use for determining the unsecured property tax rolls each year. All personal property has a minimum value regardless of age. I believe the absolute minimum value is 20-25% of the original cost until the asset is disposed of or retired from service. I have clients paying unsecured property taxes on assets acquired in the '70s because they are still being used in their business.

Automobiles fall within these rules but the taxes are assessed and collected by the DMV instead of the local tax collector. Since you say that your VLF was $471, that would seem to indicate that the DMV assessed this fee on $47,100 of value. I cannot say whether this is a reasonable valuation or not.

If you are so curious, I suggest contacting the Board of Equalization and/or the DMV and request a copy of the schedule that is used to determine the value of automobiles for the annual license fee. Make a FOIA request if need be.

If you still have this car 25 years from now, you will still have a small amount assessed for the VLF, but it will not be zero.

 

[RayK]

New owners in California, what's your VLF?

I'd say be happy for now that CA has yet to start adding additional licensing fees because we are not paying any dinojuice taxes.

Edit: And if I'm not mistaken, VLF is tax deductible.

 

[therealmrmike]

Edit: And if I'm not mistaken, VLF is tax deductible.

Yes that is correct and is the only part of the registration that is deductable

 

[miimura]

Yes that is correct and is the only part of the registration that is deductable

Yes, that is because it is the only registration component that is based on a percentage of value. As such, it is a personal property tax, a tax class that is deductible. The other fees are not deductible because they are fixed, not based on value.

 

[9erDog]

VLF is 0.65% of value based on the purchase price/value when acquired and drops for the first 11 renewal years (so by about 8% each year).

FFVR 34

So it goes by how much you paid and drops by a percentage every year. The current selling price of a new vehicle identical to yours does not matter.

 

[mickle]

VLF is 0.65% of value based on the purchase price/value when acquired and drops for the first 11 renewal years (so by about 8% each year).

FFVR 34

So it goes by how much you paid and drops by a percentage every year. The current selling price of a new vehicle identical to yours does not matter.

So it might pay to order FSD after buying the car, that way your yearly VLF will be lower (if you can get FSD at same cost during a trial period or something like that).