I've just received a bill from Honda Financial services, saying that I have to pay $154.64 in Property/Excise taxes. Now I've never had to pay this on any car I've owned or leased. My A4 Audi, which is also leased doesn't require me to pay this.

So I went on-line and have researched State/Excise taxes in TX. It says that those are to be paid by Honda, since they are the ones who are making money off the car. If I was using it as a company vehicle, then yes, I'd have to pay it... And now it's too late to call, since Honda Finance offices are open only Mon-Fri.

Can anyone give me some input on this? It's not like I can't pay it, it's just weird. I have two similarly priced cars, both of them are leased, but I have to pay this tax on one of them, and not the other. How come?

 

I've never heard of a property/excise tax on a car before...

 

I don't know about Texas, but here in WA......

They used to have property tax on cars, many many moons ago. But then they changed the laws so that it didn't apply to cars, and created a new excise tax. That's basically the 1% the value of the car, that you pay every year to renew your tabs. But they abolished that a few years ago too.

CA has the same excise tax. Maybe that's what they are referring to? Except all the excise taxes I ever paid, were owed to the DMV, not the financial services company. And $154 dollars is cheap for excise tax. I had to pay around $600 or so.

 

I'm here in SA too...never had to pay the tax you're talking about. I'd call Honda to find out what they are really asking for and then check with the Base Legal folks to see if it's something you have to pay or they are trying to pawn off a cost to you.

Cheers, Z

 

Welcome to the world of property taxes....

Did you ever say that you drive the car to a client or anything like that?? If so, you are supposed to pay the tax... I know an accountant that got stuck with it...

Also, read your lease and see if they can 'pass through' any costs... it might be in your contract with Honda and not any of the other cars..

But businesses have to pay property taxes on personal property in Texas which is all of your furniture, cars, etc. etc....

 

Thanks Chief. I'll do that.

BTW, are you on Lackland?

 

Actually I retired out of HQ AETC at Randolph just last year. Where are you?

Z

 

Well since a car is not classed as "property" (for tax purposes), this is interesting. It IS however, consider "personal" property and under that definition, many states do impose personal property taxes on cars, boats, airplanes, trailers, and such.

Check out the wording and the distinction and I would most definitely look into this.

 

It costs about $500 in property taxes to own an 05 TL in MO. It goes down as the value of the car goes down. Also, in
mo, you pay it only on a property you owned on the 1st of the year.

 

I'm on Medina Annex of Lackland. 7 years in and a year until I get out. San Antonio real estate market is waiting for me

 

in years past, texas imposed a personal property tax on personal property leased in texas. the tax was technically the responsibility of the lessor, but as you've probably noticed, the standard AHFS lease form provides for passing such taxes on to the lessee.

all this changed 1/2/2001, and now AHFS can claim an exemption from property tax for personal use automobiles leased in Texas after that date.

you'll need to provide AHFS with Form 50-285, "Leased Vehicle Affidavit" which is available at the texas comptroller of public accounts website.

good luck.

 

sweet. Thanks. I'll call them tomorrow, and find out if that would work.

 

BTW, the personal property tax on leased vehicles in Texas is a local option thing ... my city doesn't charge it, but if I lived a few miles over in the next berg I'd have to pay it, too. I'm in the Dallas/Ft. Worth area, so I don't know about you folks in South Texas.

I DO know I had to pay about $1,000 bucks a year on a BMW 740 lease I had a few years ago and it frosted me big time. But the laws have changed since then and it's now done at the city level - if your city charges it. I still have to submit a form every year to state I don't use the car for business purposes! It's pretty weird. And note, too, that some call it an "inventory tax".

 

Well, I called the AHFS and they said that my county, BEXAR county, charges this tax, and then AFHS in turn relays it to me. So, I'm screwed ;-( Bastards.

And it even says so on my lease paperwork

 

Sorry to hear about that... but take a look and make sure that the value of the car is correct... it is too late for this year, but you can protest if they put it too high.. might save you a buck or two, but not much...