fleuger99

Yesterday I received my excise/use tax bill for my RDX. It was a not so small $885.50. Here in MA they base it on the KBB MSRP value. They break it down as follows:

Year 1 = 90% of MSRP value
Year 2 = 60%
Year 3 = 40%
Year 4 = 25%
Year 5 and later = 10%

How are other states calculating this legal robbery?

DateTSX

I feel you on the excise tax. Good thing I bough mine used. the damage wasn't so bad on a two year old car.

What is the excise tax use for anyways? I still damaged road that hasn't been fix for ages!

KeithL

Do you pay sales tax as well on the purchase? That kind of sucks.

In Georgia you used to pay sales tax then annual ad valoerm which on a my M37S was about $525 a year and would depreciate a bit after year 2.

Effective March 1 Georgia changes things for the better (unless you are leasing);

You will pay 6.5 (rising to 7% over next 2 years) at purchase, and no longer get the annual ad valoerm bill and just pay annual registration of around $20.

If you lease you are screwed for now, the leasing company will pay the 6.5% and you still have to pay sales tax on the monthly payment. whihc typcially in GA runs from 6-7%.

There is a bill in the state senate to exempt leases form the sales tax putting it on par with a purchase, but this bill has been stalled so for now leasing in GA after March 1 is a dumb move.

These new rules only take effect for transaction after March 1, with some exceptions that allow cars bought in the last year to opt into the new program.

CoachRick

Unfortunately, we lived in Fulton Co., Georgia for those lovely ad valorem years...roughly 1% of the 'value' of the vehicle per year! We paid over $900 one year!

Fortunately, Texas has a nominal fee for private vehicles...about $75 per year for ours. The 6.5% sales tax is paid upon purchase OR lease(up front). It behooves a Texas resident to trade rather than sell privately, since the trade value is deducted from the sales price of the new vehicle, thus saving 6.5% of the trade value. Lest everyone pack up and move to Texas, we get slapped 'up side the head' with real property taxes in the 2-3% range annually...takes a bit of the fun out of owning a nice house.

South Carolina has some gahdawful process now. My brother tried to explain it...those legislators in SC and GA must have too much time on their hands

KeithL

Its all about the revenue and this change in GA was driven mostly by auto dealers because previously a private car sale paid no sales taxes so you save when you bought from a private party, that goes away March 1 as well.

fleuger99

Yes, we pay 6.25% sales tax as well. Only benefit to avoid taxes is trading in a car.
Trade Value = $10K
New Car = $25K
Sales Tax calculated on $15K only.

bh9712

In Denver, we pay sales tax when we buy the car (State, mass transit, and local tax based on where you live). Then when we register the car and get our plates, we have to pay an annual ownership tax - For the first year, it is 2.1% of 85% of the MSRP plus road tax, bridge tax... It goes down as the car gets older, but it was about $860 for me in the first year...

Dorsey

Florida is 6% sales tax plus a county discretionary tax (usually 1% on first $5K). The amount of any trade-in is not included. The sales tax qualifies as a deduction (in addition to the amount from the IRS sales tax table) on Federal income tax. Other than that there is no personal property tax so the only continuing governmental fee is the annual registration which is around $72. Please come visit and stay in a hotel and get a rental car. Then you will see where alot of our tax revenue comes from.

SlowLane

I live in MA too, so I share your pain. My excise tax will probably be around $500 this year . I lived in 3 other states before moving to MA, and not one of them had a yearly excise tax. Just sales tax when you buy the car.

weather

Wholly crap...are you guys saying that we actually pay one less tax than you guys pay?!

Here, you pay the sales tax on the vehicle at purchase, then you pay your annual plate fee which is ~100 a year. That is it...

CoachRick

Indeedy....when we were in Sandy Springs, that 7% tax at the dealer made for a LOT of 'private sale' ads in the paper. I'm sure the Asbury Group(Nalley et al) can make some serious noise when they get a mind to--not to mention the other 'family' and independent dealers. Not sure how it is now, but the auto section of the AJC was routinely thicker than many daily newspapers! Atlanta is a 'car' town, that's for sure!

I remember standing in the tag line at the North Fulton Annex and noticed an older woman with her registration in hand. This was years ago; but she had an '80s Chevy Citation and her ancillary tag fees were MORE than her ad valorem tax. The grand total was <$15 !!!

But, HEY...we get twice as many plates as you Georgia guys!!!

saxman48

I just purchased a new 2013 RDX near my home in the SF Bay Area. My county charges 9% sales tax (adjacent counties charge less, but we pay our home county rate regardless of purchase location). In addition, Gov Brown gets his cut, which for this purchase totals about $362. That $362 includes a $90 registration fee, $244 vehicle license fee, and misc charges for smog and tire disposal. That $362 will typically reduce every year that I own the car.

fleuger99

Good to see its not just us getting raped!

fleuger99

Same here, I lived in Cincinnati OH for 6 years before moving to MA and most of my expenses were half. Insurance, no excise taxes, property taxes etc.

I'm working on my wife to move to Austin TX. Way better weather, lower taxes and lower cost of living in general. Cool smaller city.

weather

fleuger....If your wife won't move to Texas with you, let me know. I'll grab my blond wig and I'll gladly get away from this darn snowy country of ours!! (lol)

fleuger99

I guess it can happen?

When I lived in Toronto the fees were low but we got killed with the auto insurance. I pay $765/year for my auto insurance now in MA. In Toronto it was around $1800. Crazy.

weather

^^^ Wholly Molly! That was crazy....I am paying ~750/year for the TL and ~820 for the RDX which ain't bad either. 1800$ was absurd! But then again, that is Toronto for you

fleuger99

Large metropolitan areas insurance is always high. I pay $611 for my R1200R bike but that includes $15K medical coverage which I figured I'd need if I come off

SlowLane

The excise tax helps feed local politicians. I found a pic of them eating. One party rule here in MA.

fleuger99

Stop insulting those pigs!!!

Commonwealth my @ss! LOL!

fleuger99

Hey Weather I appreciate your offer but I'll pass You know I'm becoming a little concerned. Blonde wigs in this post and then comments from you about TRANNIES in another post LOL!

weather

Lmao....

CoachRick

Come on down; but watch out for those real property taxes...2.5-3% of appraised value(like that $100k home 'in town' that's appraised @ $450k because of 'gentrification') .

I reckon you know of your namesake town just outside of Austin...Pflugerville...http://www.pflugervilletx.gov/

Weather's not too bad this weekend...still a little chilly for my taste.
http://www.weather.com/weather/weeke...+TX+78717:4:US