wiseman299

I'm new to the area I just moved not to long ago from NY, anyway I'm a little confused about how your taxes work here. I plan on getting an s2000 within 2-3 months and trying to plan my money out very carefully. what are your sales taxes for cars?? I'm buying out of state and i researched and found that the taxes are 3.5 and 1 percent local added on is that correct plus do i have to pay local if I'm buying out of state? last question at the end of the year you have another tax for owning it what's the percentage on that and why do you have to pay that?
thanks
marcus

DaveZ

I could be wrong, but I think its a 3.5% state tax then another 1 percent goes to the locality.

Don't forget about the personal property tax in Virginia which gets you year after year. It's $3.50 per $100 of assessed NADA value. It was suppossed to be phased out over 5 years for cars valued under $20,000 but when the econmy went south, they had to halt the phase-out. Just to give you an idea, on my car - probably assessed over $25k, I paid about $380 in personal property tax in 2002 (that's with some level of tax relief). In my locality, they collect PPT every 6 months - half of the annual total each time.

AndyP

Marcus,

If you were to buy a car out of your home state of VA, your VA tax would apply. BUT, you don't get charged the Dealer's Business License Tax which is only a few tenths of a percent last time I checked - still a few dollars to save. Also, you won't pay a hefty "processing fee" that mostl VA dealers charge(could be up to $300 if not more).

I'll look into it tomorrow and give you a solid answer.

Note - If you plan on buying an S, don't wait 2-3 months if you don't have to. I can get you the LOWEST pricing of the season and of the S2000's existence, along with a special rate of 2.9% for 60 months if you qualify. That deal is only good until the 25th of Feb.

Red 8683

The 3.5% plus 1% is state sales tax in VA. You do not pay that on a car purchase. What you do pay is a state titling tax of 3% of the price of the car. This has to be paid before you can title the car and buy tags.

The personal property tax is an annual tax and the rate differs by locality. It is $3 per $100 of value here in Danville. This tax is assessed by the city or county of your residence, much like real estate tax. This is paid on the value of the car at the assessment date (usually Jan 1 or July 1 depending on the locality). The phase out on the first $20000 of value is now stuck at 70%, but with economic times as they are, my guess is that the full tax may be re-instated (just my opinion).

Hope this helps.

Ace10

my best recollection is as follows: va dmv will only collect tax if you can't prove that you paid out-of-state sales tax on the purchase previously. your best bet might be to register it where you live. va will not collect sales tax if previously registered. as for persopnal property tax... it varies by local jurisdiction. tax bases vary, tax rates vary etc. in northern virginia you are generally looking at approx. 4.5% on the blue book retail, annually. if the current ppt rollback holds where it is now, the first $20K of assessed value is subject to a 70% discount. fyi-this only applies to vehicles used less 50% for business and have gross weights less than 7,500 lbs. ppt is assessed for the calendar year and, in general, it is payable in october for the current year. for a new s2k in northern va you're looking at about $720 per year in personal property tax. the good news is that it is deductible on your federal tax return, if you itemize.

taxes in virginia are complicated and burdonsome. va dealers WILL rip you on the "processing fee".

FF2Skip

wiseman299- Congrats on your decision to buy an S2000! I've never been happier with a vehicle. I don't know how I could ever be without a convertible again.

Personal property taxes are a joke. I've lived and owned in Texas and Arizona. Never such a mess as in VA! Enough negatives... trying to turn over a new leaf.


Lastly, if i purchase another Honda, I will be checking with andyp first. I've met him, and despite that(heeheehee), I would still buy from him.

wiseman299

property taxes aren't that bad for me i think the should just add it on the regular taxes would be easier and it also makes me kind of ummmm mad that i have to pay 30k+ for the car than get charged because i have good/ expensive taste. but where i'm from bergen county nj / rockland county ny. it's not in the city but the suburbs the taxes were in ny 7.25 and in the city like 8-9 percent so property tax don't bother me that much i'm used to getting raped