Michigan residents - registration renewal cost

[duneslider]

So there are places you have to pay a yearly property tax on vehicles too?

We have a registration fee and a uniform age based fee. Sales tax is paid when you buy it and never again. Looks like I will be somewhere around $200ish.

 

[mquick5]

Just renewed in Colorado. $1058.

Wow, adds new meaning to Rocky Mountain High! In Ohio it's like $55 and another $50 to add personal plates. Technically it's only $34.50 but then they add another $20 in BS fee's. 1k a year is crazy, but I'll bet you guys dont have to deal with Ohio pot holes!

Sent from my SM-G930T using Tapatalk

 

[TobyU]

It is sad how all over the place vehicle stuff is. We put up with it is why they get by with it I guess.

Most common methods I know of are pay sales tax on each vehicle you purchase at time of purchase (which is wrong due to one car can be sold 6-8 times in it's life and could potentially generate more tax revenue than it sold for originally) and then pay a lower yearly registration renewal fee-

Or-

Pay no sales tax and then pay a yearly value tax (diminishing) each year with registration.

I guess versions or both intertwined exist also.


Some states are a lot cheaper for cars or certain values.

Some states make up for it with other low or high costs of living.

I know only a little bit about it but there is a vast difference among various states in expenses.
Some have no income tax but many get you other ways.

Property values are CRAZY in different areas. Insurance too.

It's much simpler (for the individual) to die. Terrible for the survivors though!
Do all states do probate? I bet not!

 

[JNick]

Just renewed in Colorado. $1058.

I feel your pain. I just paid my first year registration in CO for my 2019 Limited Max... $1652

 

[racer_dave]

I live in MI. My 2008 GMC 2500 is about $180 a year to plate/register. My wife's 2017 Expy is about $400. Totally based on vehicle value. When I lived in Indiana cars were done by value and trucks by weight class to make them cheaper for farmers etc...

 

[chuck s]

Three year vanity tag renewal for the '11 Expedition was $193.25 ($64.42/yr). Not sure how it's based but it was only slightly more than my other two vanity tagged cars. I think the vanity tag costs $10/yr here and Virginia gets over a million dollars annually in the program.

And the weather's nicer here too.

-- Chuck

 

[Tocapet]

Just renewed in Colorado. $1058.

Yes, but much of that is personal property tax. That's deductible on your federal income tax.

 

[jimz]

Drive like you own the roads because Gov will tax, until they make you broke, to eliminate traffic that wear out their roads. Regulation through taxation is more and more common place. Ain't Socialism great?

 

[David Schaefer]

In Texas most cars re-register for about $55 to $85 I'd say it has been these amounts for 20 years or so.

I hear it is high in Georgia (Atlanta?), but not what Colorado charges.

 

[2018ExpyPlatinum]

Three year vanity tag renewal for the '11 Expedition was $193.25 ($64.42/yr). Not sure how it's based but it was only slightly more than my other two vanity tagged cars. I think the vanity tag costs $10/yr here and Virginia gets over a million dollars annually in the program.

And the weather's nicer here too.

-- Chuck

Ah, but Chuck, how much is your personal property tax in the Communistwealth of Virginia? That's one big nut! Glad I'm not there anymore.

 

[Plati]

Yes, but much of that is personal property tax. That's deductible on your federal income tax.

Dunno.
Didn't the Republicans eliminate that with the "tax cuts"?
SALT state and local tax

 

[RhinoQuartz]

That’s just wrong and whacked. Value has nothing to do with weight/class of the vehicle you drive. Communist states lol.

> communist state

Literally not a thing.

But also, it's just another metric of raising money for the state government. Not like its helped the UP much, shockingly.

 

[RhinoQuartz]

It is sad how all over the place vehicle stuff is. We put up with it is why they get by with it I guess.

Most common methods I know of are pay sales tax on each vehicle you purchase at time of purchase (which is wrong due to one car can be sold 6-8 times in it's life and could potentially generate more tax revenue than it sold for originally) and then pay a lower yearly registration renewal fee-

Or-

Pay no sales tax and then pay a yearly value tax (diminishing) each year with registration.

I guess versions or both intertwined exist also.


Some states are a lot cheaper for cars or certain values.

Some states make up for it with other low or high costs of living.

I know only a little bit about it but there is a vast difference among various states in expenses.
Some have no income tax but many get you other ways.

Property values are CRAZY in different areas. Insurance too.

It's much simpler (for the individual) to die. Terrible for the survivors though!
Do all states do probate? I bet not!

It is highly unlikely that the tax revenue generated from the sale of a vehicle will generate more revenue than it's original sale price, in fact I think it's pretty much impossible.

 

[TobyU]

It is highly unlikely that the tax revenue generated from the sale of a vehicle will generate more revenue than it's original sale price, in fact I think it's pretty much impossible.

So it is quite possible. Simply do the math. Most people sell a vehicle in three to five years. Some people sell in 2 to 3. If a vehicle sells for $50,000 and the sales tax for that state is 7.25%, let's just go at 7 so there is $3,500 off the bat.
Then that person may only keep the vehicle for a year and it can sell again 4 35000 and I might be being generous with a low number. Remember that people that buy for convenience and buy from car lots grossly over pay for cars sometimes 20% more than they could buy from a private owner.
So at 35000 it would be another $2,500.
Now let's not forget that some states have an eight to 10% sales tax. And I'm trying to use the most common numbers. Many people get a vehicle and keep it for 3 years and trade it in or sell it like a lease. I know lots of people that buy a car in one to two years either don't like it or a tired of it. So a car could sell 4 x in its first four to five years. Or at least four times and it's for six years. It is all relative of course but if in my example it sells again in three more years which is where it starts becoming less likely. Most people sell a new car in 3 to 5 years and the second owners or third owners keep them for a long time.
I've never said it happen very often but I'm saying it quite possibly can happen and probably does occasionally.
I have seen carfax's on cars that have had 12 owners in their lifetime of 10 to 15 years.
So it sells for the third time and the taxes 2000 on it and then it sells for the fourth time and the tax is 1500 and then the next time at 1200 and the next time at 1000 and the next time at 900 and the next time at 750.
That's only about $14,000 but it's still ridiculous for the state to get that kind of money on the side of the vehicle. So while it is unlikely I said it could potentially which it is possible. Here's the real part that makes me mad. If the original owner keeps that car for 15 years and then junks it the state got $3,500. But if it sells six or seven times the state could get 12 to $15,000. That is not fair that the same two vehicles generate such a difference in tax money.

 

[chuck s]

Yep, Virginia counties/cities have an ad valorem tax on cars (trailers, boats, etc.) based on some mythical value. It's a county or city tax and not connected to the state vehicle registration. I've no idea what it is off hand.

-- Chuck

 

[Going_Going_Gone]

This multiple sale/multiple taxing scenario doesn't always work out this way. For example, in my state when you trade in a used vehicle, the value of your trade is deducted from the taxable amount and you pay sales taxes on the difference. Same with manufacturer's incentives which are considered discounts on the selling price, and not purchase funds. Obviously you will not save the same amount you originally paid in sales taxes because your trade has depreciated. Anymore selling a vehicle privately is a major hassle...dealing with the aggravation of window shoppers, people who want to low ball me, and potential thieves has convinced me to trade in mine. If the deal works with a trade in, I'll take it. If not there's always other dealers. I look at it as they have to work to sell me a vehicle, not allow me to buy theirs.

Lastly, in private party sales, there are no sales taxes assessed.

 

[Plati]

…..

Lastly, in private party sales, there are no sales taxes assessed.

In NYS they get you when you register it after a private sale. They look it up in a book I think. Death & taxes , 2 things you cant avoid. Still the best country in the world by a longshot.

 

[2018ExpyPlatinum]

Chuck.........wait until you get that bill....if I still lived if Frederick County, VA...Per Prop Tax would be about $2100 based on $50k of value, plus registration fees.

And, yes, your awesome tax cut did away with deducting personal prop tax on your taxes until you can come up with $24,400 in charitable deductions, so good luck with that. That doesn't work anymore.

 

[chuck s]

I'd remember if it was $2100!

-- Chuck

 

[RhinoQuartz]

So it is quite possible. Simply do the math. Most people sell a vehicle in three to five years. Some people sell in 2 to 3. If a vehicle sells for $50,000 and the sales tax for that state is 7.25%, let's just go at 7 so there is $3,500 off the bat.
Then that person may only keep the vehicle for a year and it can sell again 4 35000 and I might be being generous with a low number. Remember that people that buy for convenience and buy from car lots grossly over pay for cars sometimes 20% more than they could buy from a private owner.
So at 35000 it would be another $2,500.
Now let's not forget that some states have an eight to 10% sales tax. And I'm trying to use the most common numbers. Many people get a vehicle and keep it for 3 years and trade it in or sell it like a lease. I know lots of people that buy a car in one to two years either don't like it or a tired of it. So a car could sell 4 x in its first four to five years. Or at least four times and it's for six years. It is all relative of course but if in my example it sells again in three more years which is where it starts becoming less likely. Most people sell a new car in 3 to 5 years and the second owners or third owners keep them for a long time.
I've never said it happen very often but I'm saying it quite possibly can happen and probably does occasionally.
I have seen carfax's on cars that have had 12 owners in their lifetime of 10 to 15 years.
So it sells for the third time and the taxes 2000 on it and then it sells for the fourth time and the tax is 1500 and then the next time at 1200 and the next time at 1000 and the next time at 900 and the next time at 750.
That's only about $14,000 but it's still ridiculous for the state to get that kind of money on the side of the vehicle. So while it is unlikely I said it could potentially which it is possible. Here's the real part that makes me mad. If the original owner keeps that car for 15 years and then junks it the state got $3,500. But if it sells six or seven times the state could get 12 to $15,000. That is not fair that the same two vehicles generate such a difference in tax money.

So, even in your meandering example, the taxes collected are nowhere near original purchase price?

And I'm not sure what fairness have to do with it? By what definition would it be fair?