ekrampitzjr
Well-Known Member
- Joined
- May 28, 2021
- Messages
- 766
- Reaction score
- 1,059
- Points
- 93
- Location
- Virginia
- Vehicle Year
- 2011
- Make / Model
- Ford Ranger
- Engine Type
- 4.0 V6
- Transmission
- Automatic
- 2WD / 4WD
- 2WD
The crazy prices of used vehicles are affecting more than you think. Carvana wants $20K for old Rangers. Now the chickens are coming home to roost.
Virginia, like some other states, has a personal property tax on vehicles. It is paid annually to the locality (city or county) and is based on vehicle value. It's in addition to the annual fee to renew tags paid to the state DMV, but that fee isn't too bad.
Yesterday a letter arrived from the city commissioner of the revenue with a warning that residents will be paying more personal property tax on vehicles when the next bills are sent near the end of the year.
The reason is that state law requires localities to use Kelley Blue Book values for assessments, and those values have shot up because of demand for used vehicles. The letter warned that some assessments will go up 25% and even as much as 50%. There is a "car tax relief" that applies in Virginia for private vehicles that offsets some of the tax.
My rough number crunching based on Hopewell's 3.5% tax less the car tax relief means I'll probably be out of pocket about $100 more on my Ranger. The city phrases it as "$3.50 per $100 of assessed value", but that's just another way of saying 3.5%.
Those of you who have to deal with such taxes need to be aware that this is coming. Virginia's taxes are actually less than some other states impose, and Hopewell has a lower rate than some other localities. When I lived in Portsmouth years ago the rate there was 5%.
Also keep in mind that some states without a personal property tax charge all car owners big bucks to renew tags annually.
Virginia, like some other states, has a personal property tax on vehicles. It is paid annually to the locality (city or county) and is based on vehicle value. It's in addition to the annual fee to renew tags paid to the state DMV, but that fee isn't too bad.
Yesterday a letter arrived from the city commissioner of the revenue with a warning that residents will be paying more personal property tax on vehicles when the next bills are sent near the end of the year.
The reason is that state law requires localities to use Kelley Blue Book values for assessments, and those values have shot up because of demand for used vehicles. The letter warned that some assessments will go up 25% and even as much as 50%. There is a "car tax relief" that applies in Virginia for private vehicles that offsets some of the tax.
My rough number crunching based on Hopewell's 3.5% tax less the car tax relief means I'll probably be out of pocket about $100 more on my Ranger. The city phrases it as "$3.50 per $100 of assessed value", but that's just another way of saying 3.5%.
Those of you who have to deal with such taxes need to be aware that this is coming. Virginia's taxes are actually less than some other states impose, and Hopewell has a lower rate than some other localities. When I lived in Portsmouth years ago the rate there was 5%.
Also keep in mind that some states without a personal property tax charge all car owners big bucks to renew tags annually.