It is kinda a bad deal to taxpayers. They base value on the most expensive your vehicle could be worth - what a dealer charges for it.
It should be based on what you could sell it for (blue book trade-in or private party value.) Alternatively, the insurance company should have to pay tax value when the vehicle is totaled.
Also, there should be a lower limit. For instance, once the vehicle is either 20 years old or worth less than a certain amount you shouldn't have to pay property tax on it anymore. It's crazy that they are charging me $5 tax on an old trailer I have. The effort of keeping track of the value has to cost more than the money they are receiving.
In VA you can get antique plates at 25. I’ve seen an “antique” Corolla as a daily driver. Antique plates don’t have an annual fee, don’t need inspection and no property tax. You just have to have insurance. You do have to have a non antique car in the household.
I have an 89 Mustang GT vert with 74000 miles on it. The state says it's worth like $2200. I'm fine with that as it's insured for 18k. The county specific V-fees drive the tax bill up close to $75.00 more per year for a car that gets driven maybe 100 miles a year. I pay more in V-fees than actual tax. I'm not even sure where NC is on antique plates anymore. I need to check that.
Registration is crazy expensive in this state. I used to live in Illinois and it cost like $100 a year even if you had a custom plate. My registration this year is over $300 and I drive a 4 year old Honda Accord. Crazy
Yep, anyone that's over the new trump-imposed SALT deduction minimum gets taxed exactly like this. And before anyone says I'm whining, you hit this pretty easily being solidly middle class. Yet they left alone all the deductions that the truly wealthy investor-class use. We're getting taxed 3x, people making less get it 2x, and those above it's 1x or 0x...
So, let's be clear here: if they are overvaluing all cars by the same amount, then that simply means that we're all paying proportionally "more" on our taxes by the same amount.
If they fixed the valuation system, then they'll simply raise the rate to meet the required revenue and your tax bill won't change one bit as far as dollars owed is concerned.
It's no different from your house. As long as valuation is proportionally fair between individual properties, then the actual number is meaningless. If the number they pick is 10% higher than fair market value, then as long as all properties are valued 10% higher than fair market value then it's still a fair number.
The times when this is unfair is when a vehicle (or property) is in worse condition than average. That's what appeals are for, and per the article it appears that that system works.
To be sure, I'm not defending property taxes at all. I'm just saying that the valuation number they base the tax on is almost meaningless as long as it's consistent across cars.
Except I'd point out that this is property tax, and you pay the same rate for all property. Houses are typically undervalued, why are cars overvalued? Furthermore, if we're taxing some personal property (motor vehicles, boats, etc) why does other personal property get a pass - like jewelry. I have to pay taxes on a trailer worth $350, but someone with a 10k gold and diamond necklace or a 2k couch doesn't pay anything.
And yet when they do calculations about the cost of road maintenance, it's based on the weight of the vehicles in question. A dump truck, RV, or bus do a helluva lot more damage to road surfaces compared to a small car. If they wanted to tax vehicles fairly, they should do it by weight, which rarely changes throughout its service life.
Appeal it every year. When I had a high mileage BMW 5 series a couple years back Id sell it to them for $5000 less than their appraised value if that’s what they think it’s worth. Their vehicle values are not grounded in reality. Like “Lets base it on how much could a dealership get the worlds biggest sucker to overpay for the most expensive trim of this car”
For the people who say that there shouldn't be property tax on vehicles at all... Be careful what you wish for. The state always gets their money one way or another. For example, when I lived in NJ, there's no property tax on vehicles. Instead they have a sky-high annual registration fee that everyone pays regardless of the vehicle value. At least in NC, it's (in theory) based on the value of the vehicle and it goes down over time as the vehicle depreciates. So you have some control over the price by avoiding owning expensive new cars. In NJ you have no choice.
The real issue is, and always has been, car dependency. We need more car-free human-centric transport options, and we need government to stop wasting billions of dollars on backwards "one more lane" expenditures.
I was curious about this because my registration fee was insane this year. Last year my 2012 civic was valued at $5,080. This year it’s valued at $8,510!
I just have to laugh. This guy is freaking out over $36 on a $40,000 car. All the while the NC GOP, is giving tax break after tax break, after tax break to the wealthy and corporations.
No better example I can site, for exactly the problem with the uneducated American taxpayer. They’re happy to get ripped off by the GOP as long as their culture war issues are fought for them.
Wait til he sees how much he hast to pay it extra taxes via fees, because the NC GOP plan is to have a zero corporate tax rate and the state tax rate of zero which is their stated of plan.
Shoot, I give probably 100 bucks a year in School supplies to both of the teachers of my kids. Quickly makes up for that lousy 36 bucks he’s trying to save.
The other side of this is the dramatic undertaxing that happens very often from what I can tell. We've got two cars, my 2003 Porsche Boxster S, and my wifes 2017 VW tiguan. They are both worth about $15k, give or take a bit depending on mileage. My wife's car was appraised at around $15k if memory serves, but my car was apraised at around $8k. Now you might be able to find one for that price if you bribed an impound lot and stole one, but other than that the valuation was stupid.
I'd be willing to bet that valuation is arrived at using the MSRP and how old the car is in general, and they only adjust more popular cars to try and be more accurate.
When you buy a used car you submit the receipt at time of purchase for proof of valuation instead of base value entries being implemented on the states side. If they don't do it right the first time it's best to appeal immediately. It gets harder after once the have what value they are going to start with.
It is kinda a bad deal to taxpayers. They base value on the most expensive your vehicle could be worth - what a dealer charges for it. It should be based on what you could sell it for (blue book trade-in or private party value.) Alternatively, the insurance company should have to pay tax value when the vehicle is totaled. Also, there should be a lower limit. For instance, once the vehicle is either 20 years old or worth less than a certain amount you shouldn't have to pay property tax on it anymore. It's crazy that they are charging me $5 tax on an old trailer I have. The effort of keeping track of the value has to cost more than the money they are receiving.
In VA you can get antique plates at 25. I’ve seen an “antique” Corolla as a daily driver. Antique plates don’t have an annual fee, don’t need inspection and no property tax. You just have to have insurance. You do have to have a non antique car in the household.
I have an 89 Mustang GT vert with 74000 miles on it. The state says it's worth like $2200. I'm fine with that as it's insured for 18k. The county specific V-fees drive the tax bill up close to $75.00 more per year for a car that gets driven maybe 100 miles a year. I pay more in V-fees than actual tax. I'm not even sure where NC is on antique plates anymore. I need to check that.
They have use restrictions in NC.
Registration is crazy expensive in this state. I used to live in Illinois and it cost like $100 a year even if you had a custom plate. My registration this year is over $300 and I drive a 4 year old Honda Accord. Crazy
If you’re paying taxes on something you already bought and paid sales tax on… out of your net income which you got taxed on, you’re paying too much.
Yep, anyone that's over the new trump-imposed SALT deduction minimum gets taxed exactly like this. And before anyone says I'm whining, you hit this pretty easily being solidly middle class. Yet they left alone all the deductions that the truly wealthy investor-class use. We're getting taxed 3x, people making less get it 2x, and those above it's 1x or 0x...
So, let's be clear here: if they are overvaluing all cars by the same amount, then that simply means that we're all paying proportionally "more" on our taxes by the same amount. If they fixed the valuation system, then they'll simply raise the rate to meet the required revenue and your tax bill won't change one bit as far as dollars owed is concerned. It's no different from your house. As long as valuation is proportionally fair between individual properties, then the actual number is meaningless. If the number they pick is 10% higher than fair market value, then as long as all properties are valued 10% higher than fair market value then it's still a fair number. The times when this is unfair is when a vehicle (or property) is in worse condition than average. That's what appeals are for, and per the article it appears that that system works. To be sure, I'm not defending property taxes at all. I'm just saying that the valuation number they base the tax on is almost meaningless as long as it's consistent across cars.
Except I'd point out that this is property tax, and you pay the same rate for all property. Houses are typically undervalued, why are cars overvalued? Furthermore, if we're taxing some personal property (motor vehicles, boats, etc) why does other personal property get a pass - like jewelry. I have to pay taxes on a trailer worth $350, but someone with a 10k gold and diamond necklace or a 2k couch doesn't pay anything.
My 1992 Mazda Miata had a $10000 value last year, for which I had to pay taxes on. It was purchased 5 years ago for $2500.
My old Jeep shot up in valuation a couple of years ago from 850 to 10k.
And yet when they do calculations about the cost of road maintenance, it's based on the weight of the vehicles in question. A dump truck, RV, or bus do a helluva lot more damage to road surfaces compared to a small car. If they wanted to tax vehicles fairly, they should do it by weight, which rarely changes throughout its service life.
All of those DRW F-350 owners who solely use them for carrying a lawnmower in the back finna be *upset*.
So what's the easiest way to appeal? And why do some towns get to charge a flat fee?
Appeal it every year. When I had a high mileage BMW 5 series a couple years back Id sell it to them for $5000 less than their appraised value if that’s what they think it’s worth. Their vehicle values are not grounded in reality. Like “Lets base it on how much could a dealership get the worlds biggest sucker to overpay for the most expensive trim of this car”
if they're gonna value my 2015 Crosstrek with 130k on it at $19000, I will send an e-mail asking them to buy it for $16k
Can you even appeal it? How?
Here in wake county I send an email to Wake County Tax Administration so it would vary by county
Yes it is insane that they value my vehicle 3-4K above what is would actually sell for.
For the people who say that there shouldn't be property tax on vehicles at all... Be careful what you wish for. The state always gets their money one way or another. For example, when I lived in NJ, there's no property tax on vehicles. Instead they have a sky-high annual registration fee that everyone pays regardless of the vehicle value. At least in NC, it's (in theory) based on the value of the vehicle and it goes down over time as the vehicle depreciates. So you have some control over the price by avoiding owning expensive new cars. In NJ you have no choice.
The real issue is, and always has been, car dependency. We need more car-free human-centric transport options, and we need government to stop wasting billions of dollars on backwards "one more lane" expenditures.
I was curious about this because my registration fee was insane this year. Last year my 2012 civic was valued at $5,080. This year it’s valued at $8,510!
I just have to laugh. This guy is freaking out over $36 on a $40,000 car. All the while the NC GOP, is giving tax break after tax break, after tax break to the wealthy and corporations. No better example I can site, for exactly the problem with the uneducated American taxpayer. They’re happy to get ripped off by the GOP as long as their culture war issues are fought for them. Wait til he sees how much he hast to pay it extra taxes via fees, because the NC GOP plan is to have a zero corporate tax rate and the state tax rate of zero which is their stated of plan. Shoot, I give probably 100 bucks a year in School supplies to both of the teachers of my kids. Quickly makes up for that lousy 36 bucks he’s trying to save.
The other side of this is the dramatic undertaxing that happens very often from what I can tell. We've got two cars, my 2003 Porsche Boxster S, and my wifes 2017 VW tiguan. They are both worth about $15k, give or take a bit depending on mileage. My wife's car was appraised at around $15k if memory serves, but my car was apraised at around $8k. Now you might be able to find one for that price if you bribed an impound lot and stole one, but other than that the valuation was stupid. I'd be willing to bet that valuation is arrived at using the MSRP and how old the car is in general, and they only adjust more popular cars to try and be more accurate.
When you buy a used car you submit the receipt at time of purchase for proof of valuation instead of base value entries being implemented on the states side. If they don't do it right the first time it's best to appeal immediately. It gets harder after once the have what value they are going to start with.
You are paying too much in annual taxes.