Has anybody run into a state taxing car collections based on current value? - NCRS Discussion Boards

Has anybody run into a state taxing car collections based on current value?

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  • Norris W.
    Very Frequent User
    • December 1, 1982
    • 683

    Has anybody run into a state taxing car collections based on current value?

    I heard a nasty rumor today that a certain Georgia car collector with a approximate 10+ million $$ collection was told by the county tax assessors that they were going to tax his cars, many of which are not registered or insured for highway use, at current market value, just as they would real estate or other tangibles. The rumor continued that this inspired him to auction a significant portion of his collection, not wishing to have an annual ad valorem tax bill of 100K or more on collectible cars.

    The person doing all the talking on this issue went on to say that there had been legal opinions solicited and that the outcome was that if the county had passed such an ordinance that it was unlikely to be overturned.

    First of all, I think it would open the flood gates from a uniformity of enforcement standpoint, but in today's climate of tax and spend politicians at every level and their insatiable lust for tax dollars, I've previously wondered if it would ultimately come to this.

    Has anybody known firsthand of this happening anywhere?
  • Gary C.
    Administrator
    • October 1, 1982
    • 17549

    #2
    Re: Has anybody run into a state taxing car collections based on current value?

    Norris, would depends on whether or not a State has an ad valorem tax that permits them to tax automobiles. Lived in Nebraska and Kansas years ago and both States taxed personal property such as cars, trucks, tractors, etc. Fortunately, Texas does not, nor have a State income tax. Gary....
    NCRS Texas Chapter
    https://www.ncrstexas.org/

    https://www.facebook.com/profile.php?id=61565408483631

    Comment

    • Dan M.
      Expired
      • March 6, 2009
      • 157

      #3
      Re: Has anybody run into a state taxing car collections based on current value?

      Connecticut taxes your personal property (cars, trucks, bikes, wave runners, trailers, etc) at the same tax rate as real estate in your particular town. They declare an "assessed value" which could be blue book value for newer cars but obviously that doesn't cover older cars. No clear way i have found of how they calculate an older cars value.

      Comment

      • Dick W.
        Former NCRS Director Region IV
        • June 30, 1985
        • 10483

        #4
        Re: Has anybody run into a state taxing car collections based on current value?

        NC uses a book of values derived from ??? It is pretty accurate on some values, way low on a lot of others (thank goodness). Some of the high end collectors have found out that their 1956 Ferarri is no longer worth $500, but closer to actual market.
        Dick Whittington

        Comment

        • James W.
          Extremely Frequent Poster
          • December 1, 1990
          • 2640

          #5
          Re: Has anybody run into a state taxing car collections based on current value?

          I am a current Nebraska resident and can tell you they tax the s*** out of us on late model vehicles or anything else with a registration and license plate. My '08 Z06 yearly personal property tax in still over $1500, then they add the $50.00 wheel tax! I have lake property in Iowa and keep all the water toys licensed in that state since there is no personal property tax on vehicles. I had thought of licensing the Z06 in Iowa when I bought it but since that address in not my primary residence and the car is at home here in Nebraska I did not want to run the risk of getting nicked for out of state plates, not to mention my neighbor is an Omaha police officer.

          My 1964 and 1965 Corvettes are licensed as antiques at a one time/non-expiring fee of $56.00 which is a good deal. To be eligible the car/truck etc. must be at least 25 years old. We'll see how long it is until Nebraska adopts a antique/collector car tax.


          Regards,

          James West

          Comment

          • Gary C.
            Administrator
            • October 1, 1982
            • 17549

            #6
            Re: Has anybody run into a state taxing car collections based on current value?

            James,

            My wife was the office manager for Rosen-Novak Chevrolet in Omaha when we lived there in the early 70's. Rosen-Novak had a dealership in Council Bluffs. They used to transfer alot of the inventory to Council Bluffs in mid December and then transfer them back in mid Jan to avoid paying the Nebraska taxes on their car inventory.

            Gary
            ....
            NCRS Texas Chapter
            https://www.ncrstexas.org/

            https://www.facebook.com/profile.php?id=61565408483631

            Comment

            • Clem Z.
              Expired
              • January 1, 2006
              • 9427

              #7
              Re: Has anybody run into a state taxing car collections based on current value?

              Originally posted by Dick Whittington (8804)
              NC uses a book of values derived from ??? It is pretty accurate on some values, way low on a lot of others (thank goodness). Some of the high end collectors have found out that their 1956 Ferarri is no longer worth $500, but closer to actual market.
              i guess they could go off of what you have it insured for the value.

              Comment

              • Ray G.
                Extremely Frequent Poster
                • May 31, 1986
                • 1187

                #8
                Re: Has anybody run into a state taxing car collections based on current value?

                Originally posted by Norris Wallace (6139)
                I heard a nasty rumor today that a certain Georgia car collector with a approximate 10+ million $$ collection was told by the county tax assessors that they were going to tax his cars, many of which are not registered or insured for highway use, at current market value, just as they would real estate or other tangibles. The rumor continued that this inspired him to auction a significant portion of his collection, not wishing to have an annual ad valorem tax bill of 100K or more on collectible cars.

                The person doing all the talking on this issue went on to say that there had been legal opinions solicited and that the outcome was that if the county had passed such an ordinance that it was unlikely to be overturned.

                First of all, I think it would open the flood gates from a uniformity of enforcement standpoint, but in today's climate of tax and spend politicians at every level and their insatiable lust for tax dollars, I've previously wondered if it would ultimately come to this.

                Has anybody known firsthand of this happening anywhere?
                Hello Norris;
                Great topic.
                Wonder if anyone reading your post has compared state by state tax advantages and disadvantages.
                Wisconsin has 5.6% sales tax, relatively low license plate, personal property tax on business only. But high real estate property tax.
                Arizona has no sales tax on private vehicle sales, 8.6% sales tax, license plate fees based on vehicle value, and low property taxes.
                Ray
                And when you get the choice to sit it out or dance
                I hope you dance


                Comment

                • Clem Z.
                  Expired
                  • January 1, 2006
                  • 9427

                  #9
                  Re: Has anybody run into a state taxing car collections based on current value?

                  some states require you to register your vehicles with in 30 days of moving there and some even give a finder fee if you turn someone in who has not done it. when my son moved to Va. for his first job a guy with a badge showed up at his condo and asked about the car with Pa. plates parked there. when my son showed him that the car was registered in my name not my sons he thanked him for his trouble and left.

                  Comment

                  • Jim D.
                    Extremely Frequent Poster
                    • June 30, 1985
                    • 2882

                    #10
                    Re: Has anybody run into a state taxing car collections based on current value?

                    That was an April fools day joke. Funny how these things take on a life of their own. http://wheels.blogs.nytimes.com/2011...sic-car-buffs/

                    Comment

                    • John H.
                      Beyond Control Poster
                      • December 1, 1997
                      • 16513

                      #11
                      Re: Has anybody run into a state taxing car collections based on current value?

                      Originally posted by Jim Durham (8797)
                      That was an April fools day joke. Funny how these things take on a life of their own. http://wheels.blogs.nytimes.com/2011...sic-car-buffs/
                      Jim -

                      That's a different subject (the Shelby Club/Schumer Federal Tax April Fool's article); subject of this thread is a Georgia issue.

                      Comment

                      • Jim D.
                        Extremely Frequent Poster
                        • June 30, 1985
                        • 2882

                        #12
                        Re: Has anybody run into a state taxing car collections based on current value?

                        Originally posted by John Hinckley (29964)
                        Jim -

                        That's a different subject (the Shelby Club/Schumer Federal Tax April Fool's article); subject of this thread is a Georgia issue.

                        I thought they were the same since I received 4 blanket e-mails from NCRS chapters this A.M. that were referring, and linked, to the very same article in the link I posted above. I still wouldn't doubt that the "Georgia issue" is some how related to the original joke. Just somebody's "spin" on it.

                        Comment

                        • Brady C.
                          Very Frequent User
                          • November 1, 2004
                          • 112

                          #13
                          Re: Has anybody run into a state taxing car collections based on current value?

                          In Louisiana, we pay $33.00 one time registration fee for classic vehicles registered with same year Louisiana plate for vehicles 20 years and older... Lifetime registration with no additional fees and the now lifetime plate stays with the vehicle and transferable to a new owner should you sell..

                          You do pay sales tax on any transfer at vehicles' value as disclosed by seller, usually in the 8 - 9% range... No additional taxes or annual assessments due. Reason we do have the worst roads!!!

                          Brady Como
                          # 42793
                          Regards,
                          Brady Como
                          #42793

                          Comment

                          • Jim D.
                            Extremely Frequent Poster
                            • June 30, 1985
                            • 2882

                            #14
                            Re: Has anybody run into a state taxing car collections based on current value?

                            Originally posted by Brady Como (42793)
                            In Louisiana, we pay $33.00 one time registration fee for classic vehicles registered with same year Louisiana plate for vehicles 20 years and older... Lifetime registration with no additional fees and the now lifetime plate stays with the vehicle and transferable to a new owner should you sell..

                            You do pay sales tax on any transfer at vehicles' value as disclosed by seller, usually in the 8 - 9% range... No additional taxes or annual assessments due. Reason we do have the worst roads!!!

                            Brady Como
                            # 42793
                            Same thing in Wa. State. I have 3 cars that are permanently registered a classics with ZERO annual fees/renewals/taxes.

                            Comment

                            • Pat M.
                              Extremely Frequent Poster
                              • April 1, 2006
                              • 1575

                              #15
                              Re: Has anybody run into a state taxing car collections based on current value?

                              Originally posted by Brady Como (42793)
                              In Louisiana, we pay $33.00 one time registration fee for classic vehicles registered with same year Louisiana plate for vehicles 20 years and older... Lifetime registration with no additional fees and the now lifetime plate stays with the vehicle and transferable to a new owner should you sell..

                              You do pay sales tax on any transfer at vehicles' value as disclosed by seller, usually in the 8 - 9% range... No additional taxes or annual assessments due. Reason we do have the worst roads!!!

                              Brady Como
                              # 42793
                              Yup, in fact I paid a one-time small fee for my 70 to get an antique, personalized, permanent plate with no renewal fee.

                              And our Louisiana roads are great!

                              Comment

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