View Full Version : How do you contest auto registration "tax value"?
theGinsue
12-08-2010, 22:55
So, about a month ago I helped my daughter buy a vehicle (she bought it, I just checked it out, worked the deal, and co-signed the loan).
It's a 2008 Ford Escape XLT. This was a lease vehicle and had 72k miles on it.
According to CarFax and NADA, the vehicle is worth $15k MAX. (She paid $15k before her trade in)
Today we received the state "your title is in" card declaring the taxable value of the vehicle is $21,239.
$21k+? Are you kidding me. I can buy a BRAND NEW 2011 Ford Escape for that much.
Of course, she will be charged the personal proterty tax portion of the auto registration based off of the $21k value unless we can successfully challenge this amount.
Does anyone know what the process is to contest this assessed value?
HBARleatherneck
12-08-2010, 22:56
it is 80% of the msrp. i believe. we just had this discussion on the colorado forum on the other site.
Geology Rocks
12-08-2010, 23:03
I was always under the impression that its not the current value or sale price but more the original taxable value, as in what Ford told the DMV the car is worth at the time of purchase with 0 miles. When I bought my STI new in 08 for $29,000 they said thevalue was $37,000. Not a good day at the DMV..:(
joe
clublights
12-08-2010, 23:07
it is 80% of the msrp. i believe. we just had this discussion on the colorado forum on the other site.
What's the " other" site? or can you post more info on this ? I'm curious
Fucking Colorado. I won't buy a new vehicle until they change. I'll likely never buy a brand new vehicle anyway, but now I'll just spend as little as possible.
brianakell
12-08-2010, 23:13
KBB ought to help knock down pricing Id think.
theGinsue
12-08-2010, 23:19
What's the " other" site? or can you post more info on this ? I'm curious
I believe he's referring to ARFCOM (ar15.com - not to be confused with CO-AR15.com)
theGinsue
12-08-2010, 23:21
Fucking Colorado. I won't buy a new vehicle until they change. I'll likely never buy a brand new vehicle anyway, but now I'll just spend as little as possible.
That's what we thought we were doing, but to be taxed on a 3 yr old vehicle with 72k miles the same as if the vehicle were new is pure theft!
Geology Rocks
12-08-2010, 23:57
That's what we thought we were doing, but to be taxed on a 3 yr old vehicle with 72k miles the same as if the vehicle were new is pure theft!
I did some digging..here ya go.
The ownership tax rate is based on the age of the vehicle from the date of manufacture. The ownership tax is calculated by multiplying the taxable value by the tax rate. (See Example #2 below)
Vehicle Age
Tax Rate
1st year
2.10%
2nd year
1.50%
3rd year
1.20%
4th year
0.90%
5th-9th year
0.45%
10th year and older
Flat fee of $3.00
Thats the % of charge based on the vehicles original value. :)
joe
Geology Rocks
12-08-2010, 23:59
full page if you want it....
http://www.denvergov.org/MotorVehicle/TitlesandRegistrations/TitlesandRegistrations8/tabid/391087/Default.aspx
joe
Relax guys!
There is alot of people that are in programs depending on you.[Coffee]
Geology Rocks
12-09-2010, 00:15
Was it around $318?
joe
Relax guys!
There is alot of people that are in programs depending on you.[Coffee]
This is a sad reality.
patrick0685
12-09-2010, 00:32
ill be in the flat $3 next year [Beer]
This is how it works.
"Specific Ownership Taxes
These taxes are based on the year of manufacture of the vehicle and the original taxable value which is determined when the vehicle is new and does not change throughout the life of the vehicle.
Ownership tax is in lieu of personal property tax. Vehicles do not need to be operated in order to be assessed this tax.
The ownership tax rate is assessed on the original taxable value and year of service
Original taxable value is 85% of manufacturer's suggested retail price (MSRP).
The annual specific ownership tax is based on the year of service."
They prorate the tax based on the years of service.
After 10 years of proration it is a flat fee.
So the tax is reduced every year until your car is 10 years old, then its a flat rate. But the tax is based off of the original value.
JohnTRourke
12-09-2010, 07:50
yeah
You got taxed sales tax on whatever you paid. (the paperwork that comes from the dealer). So if you paid 15k, you get to pay sales tax for whereever you live on that 15k
then the registration tax is whatever it is for a 2008 ford escape.
weight and value have big effects on it as the formula posted earlier shows. Big SUV's get hammered.
but it goes down pretty quickly.
Beprepared
12-09-2010, 09:09
Just did that at the DMV yesterday....OUCH....it was an extra car payment. I think Colorado just voted to keep our fees high... Thanks TAXORADO! A couple of years ago my truck hit the ten year mark. I had a great low registration fee. The this year Ritter raised the fees. That small flat fee for an older vehicle wasn't so small.[Rant1]
10th year and older
Flat fee of $3.00
Sweet, another reason to keep driving my 99 Subaru and 95 ZJ
H.
I did some digging..here ya go.
The ownership tax rate is based on the age of the vehicle from the date of manufacture. The ownership tax is calculated by multiplying the taxable value by the tax rate. (See Example #2 below)
Vehicle Age
Tax Rate
1st year
2.10%
2nd year
1.50%
3rd year
1.20%
4th year
0.90%
5th-9th year
0.45%
10th year and older
Flat fee of $3.00
Thats the % of charge based on the vehicles original value. :)
joe
Well that info is wrong. When I registered my 97 Cavalier in February 2007, it cost me well over $3....about $140~ more...
68Charger
12-09-2010, 10:20
Fucking Colorado. I won't buy a new vehicle until they change. I'll likely never buy a brand new vehicle anyway, but now I'll just spend as little as possible.
I used to buy new vehicles (I did it twice, anyway)... but forget it, I'll spend the $$ to rebuild a classic before I'll buy new with the tax rates like this... but more than likely, I'll just keep driving my '99 and older vehicles until they die, then put another engine/transmission/ etc into them to keep them going..
There are ways to get modern features in older cars now (fuel injection,etc), so you can get newer car reliability in a classic... for a daily driver.
Lex_Luthor
12-09-2010, 12:08
I paid less than $15 to register my 1992 Integra. I just put $1.00 as the sale price. The real amount paid was recorded on my Bill of Sale. :)
I paid less than $15 to register my 1992 Integra. I just put $1.00 as the sale price. The real amount paid was recorded on my Bill of Sale. :)
I did that with my Pontiac in 2003, too.
But when did you do that with the Integra? Because they don't look at that anymore, they use the MSRP for used cars bought from individuals...
Geology Rocks
12-09-2010, 12:11
Well that info is wrong. When I registered my 97 Cavalier in February 2007, it cost me well over $3....about $140~ more...
I doubt its wrong considering it came from the DMV and the state of Colorados website..;) Did it go down in 2008?
joe
Lex_Luthor
12-09-2010, 13:18
I did that with my Pontiac in 2003, too.
But when did you do that with the Integra? Because they don't look at that anymore, they use the MSRP for used cars bought from individuals...
About a week ago. But my car is 18 years old, so I suppose that might have something to do with it. I've always done that with my cars. Either I put a lesser amount like $100, or just $1.00.
Yeah we tried that this summer with my sister's car, but DMV went off the retail price instead...
Lex_Luthor
12-09-2010, 13:33
Maybe it's a Private Party seller thing? I would imagine you can't do that same thing from a dealership seller. They fill out the title and you're forced to declare the sale amount and then made to pay tax on it.
theGinsue
12-09-2010, 18:11
I did some digging..here ya go.
.
.
Thats the % of charge based on the vehicles original value. :)
joe
full page if you want it....
http://www.denvergov.org/MotorVehicle/TitlesandRegistrations/TitlesandRegistrations8/tabid/391087/Default.aspx
joe
THanks for the research Joe!
Was it around $318?
joe
We don't know yet - she has until just before mid January to get it registered. Given it will officially be 1 yr older in January, I think we'll wait until just after the first of the year to register it - it might save her a few bucks!
This is how it works.
.
.
Ownership tax is in lieu of personal property tax. Vehicles do not need to be operated in order to be assessed this tax..
.
.
But the tax is based off of the original value.
Thanks for doing some research on this too Bowtie!
I love how the state differentiates between "ownership" and "personal property" taxes. As a person having to pay the taxes I really don't care what they call them - it's still a tax. I suspect they have two different names for the taxes so they can come in at a later time and charge BOTH taxes. Of course, they'll say "Ownership tax is in lieu of personal property tax. Vehicles do not need to be operated in order to be assessed this tax." - If you HAD to operate it to be taxed for it they'd lose all of the tax revenue for cars folks bought as junk an are restoring, or cars that have broken down and the owners can't afford to get them fixed for 2 years.
I especially love how they base the tax off of the "original value" of the car instead of it's true value today. Again, just another way to increase their revenue. Thieving buggers!
Well that info is wrong. When I registered my 97 Cavalier in February 2007, it cost me well over $3....about $140~ more...
Keep in mind that the registration includes not just the ownership tax, but the severely increased "registration FEES" (note: not taxes, but fees).
I paid less than $15 to register my 1992 Integra. I just put $1.00 as the sale price. The real amount paid was recorded on my Bill of Sale. :)
That's cr@p. Not that I don't believe you; I totally do. I mean that I'm getting raped for $45/yr now for a '97 single axle 6'x12' utility trailer that only cost me $14 to register in '08. I realize that your Integra is 5 yrs older, but how can they justify charging 3x more for a single axle utility trailer that they are charging for a powered 2 axle vehicle? THIEVES! (For the record, the trailer is only for personal use [ATV hauling, taking stuff to the landfill, etc.] - not for commercial purposes. I know that they charge more for commercial vehicles.)
Thievery is EXACTLY what it is. I'll just have to stick with my old cars.
JohnTRourke
12-12-2010, 08:02
THanks for the research Joe!
That's cr@p. Not that I don't believe you; I totally do. I mean that I'm getting raped for $45/yr now for a '97 single axle 6'x12' utility trailer that only cost me $14 to register in '08. I realize that your Integra is 5 yrs older, but how can they justify charging 3x more for a single axle utility trailer that they are charging for a powered 2 axle vehicle? THIEVES! (For the record, the trailer is only for personal use [ATV hauling, taking stuff to the landfill, etc.] - not for commercial purposes. I know that they charge more for commercial vehicles.)
Actually trailers are just trailers. And they are still pretty cheap. (although as you've noticed, it got older and now it costs more than when it was new). The vehicle pulling them with commercial tags costs a lot more though.
After being bent over the desk at the DMV, this year, I would consider regestering my vehicles in Wyoming or Montana. I don't mind paying my "fair" share of taxes but it has gotten out of hand.
JohnTRourke
12-12-2010, 15:25
I bet I win.
I paid over $7600 this year (with one more to go, only $300 or so) for about 25,000 miles.
Didn't buy anything this year, so that's not sales tax.
theGinsue
12-12-2010, 15:43
Dog gone Brian - are they at least using lube before they bend you over like that?
JohnTRourke
12-12-2010, 16:33
Dog gone Brian - are they at least using lube before they bend you over like that?
hell no
Effing boulder county too (which doesn't help either)
but they do know who I am at the DMV (which is pretty sad too when you think about it)
After being bent over the desk at the DMV, this year, I would consider registering my vehicles in Wyoming or Montana. I don't mind paying my "fair" share of taxes but it has gotten out of hand.
It's not optional. If you are a resident then you have to register it in the county you live in. There are regs covering the taxes and if you live in the emissions sticker area.
There are exceptions.
I have known people to get away with it for years and I have known some who got tickets after just a short time.
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