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Vehicle Property Taxes

Discussion in 'Energy, Environment, and Policy' started by dave, Oct 1, 2012.

  1. dave

    dave Member

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    I live in KY, and just realized that if I end up buying my Model S for around $85K, I will be looking at roughly $1000/year in property taxes on it. Does anyone else live in a state that charges this tax? Do you also find it hard to stomach or am I just too cheap?

    I had talked myself into "investing" the $85K to buy car, but now that I consider the increased property taxes along with the insurance premiums, and mandatory maintenance plans, the cost to own this car is getting a little out of hand. I'm trying to justify it, but am losing the battle with myself.

    Someone talk me back into it. :)
     
  2. Doug_G

    Doug_G Lead Moderator

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    WTF? How in the world can they possibly justify that???
     
  3. ElSupreme

    ElSupreme Model S 03182

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    #3 ElSupreme, Oct 1, 2012
    Last edited: Oct 1, 2012
    Georgia just ended this practice. It was called ad velorum tax, or the 'birthday tax' because it was due on your birthday with your vehicle registration. They rapidly depreciated the value of the vehicle. I think most people paid between $500-$200 a year.

    EDIT: My last tax (Feb 2012) was ~$230 on a 5.5 year old VW GTI ($23k sticker) with 100k miles on it. I don't remember paying more than ~$350 my first year, but I don't remember.
     
  4. AnOutsider

    AnOutsider S532 # XS27

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    Had no idea states did these. We pay taxes on purchase/registration, but that's it. Time to move?
     
  5. markb1

    markb1 Active Member

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    We've got that here in California too, though I think it's about half that. And it goes down each year at the vehicle depreciates. It's also tax deductible, as long as you don't pay AMT. (Though I suspect a large number of us Tesla buyers pay AMT.)
     
  6. Langzaiguy

    Langzaiguy Member

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    Hey dave, I'm in ky too! I actually crunched the numbers too and got the same figures. In ky, there are many taxes figured into our annual vehicle registration.

    Like you mentioned, this plus the maintenance fee has pushed me into waiting a couple years for an S or a GenIII.

    If you want to be talked into keeping your reservation I would t tell you that any new car would be taxed at least $500 annually and that the taxes can be written off your state and fed taxes later.

    Sent from my SCH-I510 using Tapatalk 2
     
  7. augkuo

    augkuo Member

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    In California the VLF fee is 1.15% of the vehicle purchase price - so around $1000/year as well. I don't think you should equate owning this car with an econobox - the taxes would be the same with a similarly priced luxury vehicle. The only difference is that other people will be subsidizing your Model S ownership (tax credits/rebates) so don't feel so bad ;)
     
  8. phx182flyer

    phx182flyer P11051

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    Arizona has a VLT (vehicle license tax) based on 60% of the manufactures base price, then reduced 16.25 percent for subsequent years. 2.80 / 100 dollars assessed valuation for new registration
     
  9. markb1

    markb1 Active Member

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    I think it's actually .65%
     
  10. augkuo

    augkuo Member

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    right - it was reduced after July 2011 - I guess I got my roadster a couple of months too soon ;(
     
  11. Mike_Schlechter

    Mike_Schlechter Model S - P457

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    CT also has property tax on cars. There was a movement to limit or eliminate the tax on low / no emissions vehicles, but it has gone the way of the Dodo in the current fiscal crisis.
     
  12. sublimaze1

    sublimaze1 8Dec2012 / Leeroy Jenkins

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    @ dave in KY

    I cannot tell you to "hang in there" or to "bail" - what I can do it put on my political hat and say, for example, that your state has this tax (or penalty) while my state does not. For instance, my state has no state income tax - but in order for me to practice medicine, I have to pay $826 for a 24 month license. It was $26 when I was in Pennsylvania in the 80s-90s.

    What I am saying is that each state has a "gotcha" that will - well - get ya. The biggest reason you have not had to deal with this, I surmise, is that this is the first car you have considered buying that swells that tax to noticable. Maybe not. But maybe.

    It is one of those situations where you have to dig in and make some choices. And remember, we all have to go to work and pay taxes, because 51% of the population is relying on us for benefits.

    Political hat removed. Hoping he doesn't regret that Romney-Like comment.

    WJ
     
  13. dave

    dave Member

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    Well, the most expensive vehicle I've owned is my minivan which I paid $36K for last year. It was appraised at $30K for tax purposes this year, and produced a bill of $379. As I pay that this month, I started thinking about how I'd feel when I get a $1000 bill for my Tesla. That money doesn't even go towards the principal, it's just gone...

    So no, I've never had a luxury vehicle before. I wasn't even the market for one. I'm just a humble IT geek that got enamored by the technology in the Tesla and wanted in. Somehow I can stomach paying for the car, since it feels like I'm paying for SOMETHING. I'm gonna have trouble with the taxes and maintenance plans though. They go against my frugal nature...

    Unfortunately, I don't have enough deductions to itemize on my taxes, so I can't claim it as a deduction either.

    They should charge us a base price for the car and then we can buy the battery as an "accessory" later on that wouldn't be included in the base value for tax purposes. ;)
     
  14. AustinPowers

    AustinPowers Total Smeghead

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    #14 AustinPowers, Oct 1, 2012
    Last edited: Oct 1, 2012
    If you do, don't move to Germany. Why?
    First, you pay 19% VAT on the purchase (no exemption for EV's) which means 57,400 Euro plus 10,906 Euro VAT = 68,306 Euro naked base price for the 40 kWh Model S *
    Second, no incentives for buying an EV, so no 7,500 or whatever tax reduction. You do save the vehicle tax for five years (sounds good, doesn't it?), but if you already had an eco-friendly gasonline car with a low fuel consumption, what you save amounts to a few hundred Dollars at most (a VW Passat EcoFuel for example costs 29 Euro / year so you save just 145 Euro / five years!).
    Third, as Model S is a "premium" vehicle with lots of power, insurance premiums will be comparable to say a big-engined 5-series, E-class or A6, in other words "not good value for money". Absolutely no doubt about it.

    ___________________________________________________
    *I know technically this won't be the price in Euro, but considering necessary adaptations for the European markets, transport, import taxes etc., I don't think it will be much less than the equivalent in Dollar.
     
  15. steve841

    steve841 Active Member

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    Wow... Reading this thread just makes me hate government even more.

    Quit wasting our money!
     
  16. araxara

    araxara S-P85#3,218 X-90D#3,299

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    Yes, but for EV's and alternate fuel vehicles it's reduced quite a bit because the assessed value of the vehicle is only 1% of the factory list price:

    Vehicle License Tax (VLT) – The VLT for an AFV is changed to a rate of $4.00 per $100 of assessed valuation, which is determined by the following:

    a. For the first year, the assessed value is 1% of the factory list price (FLP) of the AFV.
    b. For subsequent years, the assessed value is depreciated 15% each year.
    c. The minimum VLT for an AFV registration is $5.00.

    Fees – In addition, an AFV is subject to: $8.00 vehicle registration fee, $8.00 one-time special plate or sticker fee, 25¢ Air Quality Compliance Fee (if in an emissions test area) and a $1.50 Air Quality Fee.


    Alternative Fuel Vehicle Information
     
  17. Liz G

    Liz G P03056

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    Buying this car is a good start.... Get us off oil and we won't have to spend so much protecting our interests in the Middle East.

    Sorry couldn't help myself....promise I'll stop now.
     
  18. steve841

    steve841 Active Member

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    Only flaw with your thinking.... State taxes, not federal taxes.
     
  19. sublimaze1

    sublimaze1 8Dec2012 / Leeroy Jenkins

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    she may have meant our troops ....
     
  20. phx182flyer

    phx182flyer P11051

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    Oops. Forgot they implemented this. Thanks for the correction.
     

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