How do you contest auto registration "tax value"?

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12-08-2010, 22:55
theGinsue

How do you contest auto registration "tax value"?

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?
12-08-2010, 22:56
HBARleatherneck

it is 80% of the msrp. i believe. we just had this discussion on the colorado forum on the other site.
12-08-2010, 23:03
Geology Rocks

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
12-08-2010, 23:07
clublights

Quote:

Originally Posted by HBARleatherneck

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
12-08-2010, 23:08
Irving

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.
12-08-2010, 23:13
brianakell

KBB ought to help knock down pricing Id think.
12-08-2010, 23:19
theGinsue

Quote:

Originally Posted by clublights

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)
12-08-2010, 23:21
theGinsue

Quote:

Originally Posted by Stuart

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!
12-08-2010, 23:57
Geology Rocks

Quote:

Originally Posted by theGinsue

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
12-08-2010, 23:59
Geology Rocks

full page if you want it....

http://www.denvergov.org/MotorVehicl...7/Default.aspx

joe
12-09-2010, 00:13
Sixgun

Relax guys!
There is alot of people that are in programs depending on you.[Coffee]
12-09-2010, 00:15
Geology Rocks

Was it around $318?

joe
12-09-2010, 00:16
Graves

Quote:

Originally Posted by Sixgun

Relax guys!
There is alot of people that are in programs depending on you.[Coffee]

This is a sad reality.
12-09-2010, 00:32
patrick0685

ill be in the flat $3 next year [Beer]
12-09-2010, 00:43
Bowtie

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.
12-09-2010, 07:50
JohnTRourke

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.
12-09-2010, 09:09
Beprepared

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]
12-09-2010, 10:10
Hoosier

Quote:

Originally Posted by Boostedxt

10th year and older

Flat fee of $3.00

Sweet, another reason to keep driving my 99 Subaru and 95 ZJ

H.
12-09-2010, 10:16
Ridge

Quote:

Originally Posted by Boostedxt

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...
12-09-2010, 10:20
68Charger

Quote:

Originally Posted by Stuart

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.
12-09-2010, 12:08
Lex_Luthor

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. :)
12-09-2010, 12:10
Ridge

Quote:

Originally Posted by al-x

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...
12-09-2010, 12:11
Geology Rocks

Quote:

Originally Posted by Ridge

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
12-09-2010, 12:26
Ridge

Not down to $3...
12-09-2010, 13:18
Lex_Luthor

Quote:

Originally Posted by Ridge

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.
12-09-2010, 13:28
Ridge

Yeah we tried that this summer with my sister's car, but DMV went off the retail price instead...
12-09-2010, 13:33
Lex_Luthor

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.
12-09-2010, 18:11
theGinsue

Quote:

Originally Posted by Boostedxt

I did some digging..here ya go.
.
.
Thats the % of charge based on the vehicles original value. :)

joe

Quote:

Originally Posted by Boostedxt

full page if you want it....

http://www.denvergov.org/MotorVehicl...7/Default.aspx

joe

THanks for the research Joe!

Quote:

Originally Posted by Boostedxt

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!

Quote:

Originally Posted by Bowtie

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!

Quote:

Originally Posted by Ridge

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).

Quote:

Originally Posted by al-x

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.)
12-12-2010, 01:52
FL410

Thievery is EXACTLY what it is. I'll just have to stick with my old cars.
12-12-2010, 08:02
JohnTRourke

Quote:

Originally Posted by theGinsue

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.
12-12-2010, 13:56
Ah Pook

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.
12-12-2010, 15:25
JohnTRourke

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.
12-12-2010, 15:43
theGinsue

Dog gone Brian - are they at least using lube before they bend you over like that?
12-12-2010, 16:33
JohnTRourke

Quote:

Originally Posted by theGinsue

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)
12-12-2010, 19:13
SAnd

If you can get away with it.

Quote:

Originally Posted by Ah Pook

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.