| dbehrens |
Arnold the new Govenator just lowered the car tax (Vehicle License Fee or VLF).
How many people were waiting to buy thier new car until the car tax went down? Will you choose more options and spend more on your new car? |
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| thill381 |
| What percentage was the tax rate before, and what ahs it been lowered too? Here in Illinois is is based upon your county generally between 6.25% and 7%. |
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| dbehrens |
The car tax is a licensing fee charged by the state based on the value of your car. In 1998 the fee was reduced and in June, 03' it was TRIPLED to 2% of the cars value. When you purchase the car you pay 2%, each year after that, you pay 2% based on the car's reduced assessed value to renew your license plates.
Arnold just repealed the tripling part reducing the fee to about .7% of the value of the vehicle.
When I purchased my X last year I paid about $250 in fees, to renew this year I just paid $700 for the same fees, even though the assessed value vent down. |
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| reds2k1 |
So are we back to the old tax rate now that Arnold has repealed it, or does it need approval from others? I wonder if people that have paid the extra in taxes get the difference back?
I think the savings on the MDX would be about $500 - $800. |
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| thec |
Forgot what the exact figure was...but the MDX I just got this past weekend had a registration bill near the high end of $800.
I should get about 2/3 of it back, which figures to be close to $600. |
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| reds2k1 |
| So you've been notified that you're getting a refund. Wow, that's great! |
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| thill381 |
| Once we pay our 6.5% at initial prchase our tag renewal is only about $75/ year. I guess it kind of evens out, paying a smaller amount up front but a higher payment at renewal each year. |
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| ScottS2K |
| I am in the negotiation stage currently here in California. The registration fee is still high as no one has communicated to the DMV how to handle this current change. I am not sure when the change will happen at the dealer. |
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| TheWorm |
Just to clarify, we pay ~8%+ sales tax on the new car purchase, PLUS annual registration (was .7%, raised to 2% of the car's depreciated MSRP). So, a new $40k X today will net the gubment $4k in taxes, right out of the gate. Not counting tire disposal fees and smog abatement fees.
According to the FAQs I've seen, DMV says it'll take them 90 days to reprogram their computers for Ahnold's fee reversal (thanks, Ahnold!), so you should just pay the full amount and apply (or wait, if it's automated -- I hope) for a refund/rebate.
http://sfgate.com/cgi-bin/article.c...MNG3Q34KD71.DTL |
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| reds2k1 |
| Thanks for the link! It helped answers my questions.:D |
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| Fabvsix |
| Mine was about $900.00 this past August. Had it not changed due the the "terminator", it would have cost me $2,700.00 to renew next year in August ! :1zhelp: :1zhelp: |
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| thec |
| Are you sure your August payment wasn't for a registration that was due post 10/31? If you had to pay $900 in August, that means the rest of us who just paid about that amount to get a new 2004 isn't getting any back...which doesn't sound right as no dealer or govt clerk would have allowed us to pay the lower amount before Arnold rescind the tax. |
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| harmonr1 |
quote:
...the DMV how to handle this current change...
I just heard on radio that the DMV has instructed dealers to collect the REDUCED fee. They will have a calculator on their web site by week's end for people now starting to pay their fees. And I just mailed them a check last week.:1pat: |
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| TheWorm |
I'll be waitin' for my refund. Coughed up $800 to register the new car just 3 weeks ago. I'm sure there'll be forms to fill out and a long waiting list.
Got the X renewal (due in January) at the 2%/tripled rate just the other day. Curious to see whether they end up remailing those.
Not that I'm complaining. I'll accept the hassle for a thousand bucks back on both cars. |
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| ayanomich |
| Congrats to the California members, Gov Ahnold did exactly what he said he would do. For the record, Nevada registration is also value based, I paid 7.25% sales tax for my 03 and $700 to register. The sales tax was adjusted for my trade-in, and I did get a partial refund on the registration because I had just renewed my 02 X in June, but overall the state makes out like crazy on the value based tax. Side note: If you itemize taxes, you can deduct the registration taxes. |
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| dbehrens |
quote:
Originally posted by TheWorm
I'll be waitin' for my refund. Coughed up $800 to register the new car just 3 weeks ago. I'm sure there'll be forms to fill out and a long waiting list.
My one year renewal date (registration renewal date) was Nov. 15, and the tax increase was repealed on Nov. 17. They are supposed to be making the decrease retroactive, but the state treasurer has already said CA doesn't have the money to refund everyone who paid the higher rate. If they don't refund everyone, it sounds like class action law suit to me! |
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| DaleB |
quote:
Originally posted by dbehrens
My one year renewal date (registration renewal date) was Nov. 15, and the tax increase was repealed on Nov. 17. They are supposed to be making the decrease retroactive, but the state treasurer has already said CA doesn't have the money to refund everyone who paid the higher rate. If they don't refund everyone, it sounds like class action law suit to me!
Nah, let's have another recall! :p |
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| RobDDD |
Glad I dont live in CA..............
:) |
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| mdxxxx |
quote:
Originally posted by DaleB
Nah, let's have another recall! :p
:22: |
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| TheWorm |
From the DMV website:
quote:
Vehicle License Fee Notice
Governor Schwarzenegger has signed Executive Order S-1-03 rescinding the Vehicle License Fee (VLF) increase that went into effect October 1, 2003.
Customers who have paid the full amount will automatically receive a refund by mail beginning in early 2004.
Customers who have not already paid their registration renewal may calculate their lower fees by taking the VLF line from the billing notice multiply it by .675 and subtract that amount from the total fees due. Round this figure to the nearest whole dollar.
Submit the new amount by mail to the address on your billing notice:
P.O. Box 94286
Sacramento, Ca 94269-0001
At this time, the reduced registration amount can only be accepted by mail.
Please remember to pay your registration on time to avoid penalties.
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| Fabvsix |
NO RobDDD, I'm OVER JOYED I don't live in Joisey, much less Bush country !
I'll take Caliphony any day !
:cool: ;) :p |
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| BigDog |
The 2% VLF fee was what we all paid prior to to the VLF Offset which went into effect on July 1st 1999. Davis didn't triple the car tax, he repealed the Offset, (which was a deduction of 2/3 of the VLF), returning license fees to what they were originally charged at for as long as I've owned vehicles. It's not exactly the same thing.
The Govenator just repealed the repeal. While I'm happy to pay lower fees, the budget shortfall will have to be made up somewhere else. Returning the car tax to pre-1999 levels would have made up over 1/3 of our current budget deficit. Now we'll just have to borrow more money, making it someone else's problem and making Ahnold look good. I wonder if the VLF Offset had not been put in effect in the first place we wouldn't be in quite the budget crisis we are in now.
California hasn't been the same since Prop 13 passed in 1977. I wonder if all those people rejoicing in their lower property tax bills thought ahead to a future where their children and grandchildren are now subsidizing them.
Mrs. BigDog |
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| TheWorm |
FYI, I received my DMV/registration refund today from my Infiniti dealer (purchased late October, pre-Governator's repeal).
If you bought new and paid the dealer for registration, it appears that the DMV is refunding to the dealers rather than to the registered owners.
IOW --> Check with your dealer if you paid the big money.
http://www.dmv.ca.gov/vehindustry/v...003/03vin17.pdf |
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