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Model X + Personal Property Tax = Expensive

Lysol

Member
Oct 22, 2016
100
52
Virginia
*I know a lot of you already know about personal property taxes, my wife and I have had to learn all of this stuff on our own.

Just thought I'd throw this out there as people moving to VA with a Tesla (or any expensive car) might want to know about the personal property tax situation here. In short, you must pay $ per year to own your car. The more your car is worth, the more $ you pay per year.

Currently, I'm unaware of any EV tax relief.

My wife and I just moved to Leesburg, VA from Fairfax County, VA. We are already aware of the county property tax that Virginia counties have. Each county in VA uses 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. Anyway, each county has a % that differs from others that you must pay either bi-annually or annually. There is a tax relief so the owner pays a % of the tax up to the value of $20k and then pays 100% of the tax up to the value of the vehicle after.

We used to live in Fairfax County and not in a town or city so we've only had to pay just the county property tax there on our vehicles. Now that we moved to Leesburg, VA we not only have to pay the Loudoun County property tax, but we also have to pay a Leesburg, VA property tax... lol.

Just to recap when purchasing a vehicle here in VA:
VA Initial Sales Tax - 4.15%
County Personal Property Tax - Differs
Town Personal Property Tax - Differs

Our old location:
Fairfax County tax - 4.57%

Our new location:
Loudown County tax - 4.2% | tax relief is 60.5% on the first $20k
Leesburg, VA tax - 1% | tax relief 52% on the first $20k

For a $100,000 car in Loudoun County it would cost:
$100,000 * .042 = $4200
Relief calculation:
$20,000 * .042 = $840
$840 * .605 = $508.2
Total with relief:
$4200 - $508.2 = $3,691.80

Now to calculate same car value in Leesburg, VA:
$100,000 * .01 = $1000
Relief calculation:
$20,000 * .01 = $200
$200 * .38 = $104
Total with relief:
$1000 - $200 = $800

Now to add both taxes...
Loudoun County + Leesburg:
$3,691.80 + $800 = $4,491.80

That comes out to $374.32 per month just to pay personal property taxes on a $100k electric car. Now, I know this will go down slightly each year as the car devalues, but it's still quite a hard pill to swallow considering it's money out of your pocket. I was able to rationalize moving up to a more expensive car (Model X 75d) that doesn't have the gas costs of an ICE, but after we found out that we have to pay both the county and town personal property tax (we thought we would only have to pay the town tax), it bumps the Model X out of rationalization for us.
 

Lysol

Member
Oct 22, 2016
100
52
Virginia
I calculated the tax relief for Leesburg wrong. It's actually $96/year more than my initial calculation. Below is correct:

Now to calculate same car value in Leesburg, VA:
$100,000 * .01 = $1000
Relief calculation:
$20,000 * .01 = $200
$200 * .38 = $104
Total with relief:
$1000 - $104 = $896

Now to add both taxes...
Loudoun County + Leesburg:
$3,691.80 + $896 = $4,587.80

That comes out to $382.32 per month just to pay personal property taxes on a $100k electric car.
 

182RG

Free The Service Manuals From Tyranny
Apr 26, 2016
714
935
Virginia
The property tax seems high and unfair. Perhaps you should start a movement to repeal this tax!
It used to be worse, before "relief" was instituted under a previous governor.

That said, the OP does live in one of the most affluent parts of Virginia. Part of the price you pay to be closer to DC.
 

Lysol

Member
Oct 22, 2016
100
52
Virginia
Yea. Don't get me wrong... I love the area. I understand how local services need to get their money from somewhere, but it still hurts my eyes when calculating that... lol.
 

182RG

Free The Service Manuals From Tyranny
Apr 26, 2016
714
935
Virginia
Yea. Don't get me wrong... I love the area. I understand how local services need to get their money from somewhere, but it still hurts my eyes when calculating that... lol.

It does. I live in Frederick (west of you). I'll take our state income, real estate and sales tax rates over a lot of other places. Think about Jersey, NY, Cali, etc.
 

Lloyd

Well-Known Member
Jan 12, 2011
6,268
2,068
San Luis Obispo, CA
Is this on all personal property, or just automobiles? If just autos, how did they decide to single out this particular possession? If this, why not jewelry, stock holdings etc.
 

182RG

Free The Service Manuals From Tyranny
Apr 26, 2016
714
935
Virginia
Is this on all personal property, or just automobiles? If just autos, how did they decide to single out this particular possession? If this, why not jewelry, stock holdings etc.

Automobiles, motorcycles, boats, RVs, tools, airplanes. It's what they consider "Tangible Personal Property". No body reports tools. The usual targets are those property items that are registered with the state and/or locality. Our state sales tax and income taxes are relatively low, with no local income tax, and most areas of the state have very low real estate taxes. The theory behind it is that it is progressive, and taxes those who can afford expensive items. Frankly, I agree with it. It gives me a choice.
 

DillyBop

Member
Sep 24, 2015
173
80
Middleburg, VA
That comes out to $382.32 per month just to pay personal property taxes on a $100k electric car.

yep. now imagine those same taxes on a $165k car!

oh, and no fed tax credit bc i'm retired.

now add in car insurance at $3k/yr. and annual service about $700/yr. and a new set of performance rubber every year about $2k.

sux.
 
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Reactions: Cowby

hill

Active Member
Apr 21, 2015
1,311
659
Lake Forest, CA
The op could always move to Montana - where vehicle cost - no matter how pricey - isn't even part of the equation ;
  • Vehicles 4 years old and under: $217.
  • Vehicles 5 to 10 years old: $87.
  • Vehicles over 11 years old: $28 (if vehicle is not permanently registered).
+ no sales tax
;)
 
  • Informative
Reactions: Cowby and passcore

Lysol

Member
Oct 22, 2016
100
52
Virginia
The op could always move to Montana - where vehicle cost - no matter how pricey - isn't even part of the equation ;
  • Vehicles 4 years old and under: $217.
  • Vehicles 5 to 10 years old: $87.
  • Vehicles over 11 years old: $28 (if vehicle is not permanently registered).
+ no sales tax
;)
Now that's a state high up on our list of places to visit...

I've read into registering my car out of state, but my coworker did that with his range rover and got caught. Someone snitched on him and reported it. They came after him for $30k in unpaid county taxes... I believe they backtracked the cost to when he moved to VA.
 

AMN

Supporting Member
May 24, 2013
384
1,429
MSP, JFK, BZN
On a car worth $150k, we pay $1,500 annual registration tax in MN. Does that make you feel better?

P.S. No wonder our government runs at a surplus.
 

rush6410

Member
Sep 26, 2016
631
603
Montgomery TX
You're lucky you don't live in a city that has higher taxes. I lived in Suffolk VA for a bit and was paying 8% personal property tax. We actually moved from VA because of the high tax rates.
 

AMPUP

Member
Mar 27, 2014
638
227
Dunn Loring, VA
Well Virginia's total Tax liability is better than Maryland and many other states (Income, Property, Personal Property included). Loudon and Fairfax counties are also two of the best in the country from a Living, schools, crime standpoint.

Now, I think the personal property tax is crazy and the way that they calculate it for the Tesla isn't fair (They don't use KBB they use the black book value), when I picked up my P5+ in 2014 they couldn't value the car and left myself and many owners frustrated, when they did value it they used the P85+ cost which many argued wasn't fair as with other cars they value on base model with no options, that wasn't the case with Fairfax county.

I think I calculated once that I will end up paying about $15K in Taxes (Purchase and Property) over a 5 year ownership...Do I like it, no. But like I said total TAX liability in Virginia is still one of the lowest around.
 

JHuberman

Member
Dec 28, 2016
140
149
Raleigh
Raleigh NC shocked me with the Taxes and fees:
North Carolina purchase fees: $2554 includes $2331 in hwy. use tax + $130 electric vehicle (penalty) fee
Annual Property tax for Wake County and Raleigh City: $821
 

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