Since used cars are appreciating ... will VA property taxes increase?

[Anonymous]

I'm a little concerned that since used cars are appreciating in value, that could be reflected in the KBB, resulting in HIGHER car taxes this year in Virginia. Anyone heard anything about this possibility?

[Anonymous]

Even if there is an increase, it's not going to break anyone's bank.

[Anonymous]

Perhaps if you newly registered, but I would be surprised if they increased value on a car you already own. Don't these go off the purchase price?

I don't know if this happens in every county, but it appears if you buy a new car in December, you will pay 1/12 the property tax for the year, then start the next year with a 1/4 reduction in value and thus 1/4 less tax.

[Anonymous]

Thinking about moving to VA., but that car tax seems rough. Assuming you buy a new car for 40k this year, how does the state calculated the decline in value next year.

[Anonymous]

Anonymous wrote:Even if there is an increase, it's not going to break anyone's bank.

I specifically bought a car that would be valued under $20,000 and now it’s valued at more than $20,000. I am super annoyed and I’ll be interested to see how this plays out.

[Anonymous]

Anonymous wrote:Thinking about moving to VA., but that car tax seems rough. Assuming you buy a new car for 40k this year, how does the state calculated the decline in value next year.

They go by kbb.

[Anonymous]

My car tax is $1250 for a new car valued at $43K. This is after taking off the rebate from the VA state.

This is one of the ways state charges rich people driving expensive cars.

[Anonymous]

To answer OP's original question about used car values, Fairfax County 2021 vehicle tax bills arrived this week.

Using our 2 vehicles as an example for older vehicles already owned,

For a 10 y.o. vehicle originally purchased new for approx $33K, in 2020 it was assessed at just over $4K, and in 2021 it's now assessed at just under $4K. Assessed value decreased by exactly $200 and tax bill decreased by almost exactly $2. Due to its actual rough condition, it's probably over assessed by $500-$1K.

For a 5 y.o. vehicle originally purchased new for approx $38K, in 2020 it was assessed at approx $17K, and in 2021 it's now assessed at approx $15K. Assessed value decreased by approx $1500 and tax bill decreased by almost $20. Due to its actual excellent condition and current demand, it's probably under assessed by $5K (trade in value is at least $20K, which is crazy, but we don't plan to sell it).

If increased demand and prices for used vehicles continues, we may see slightly higher assessments or at least an absence of/smaller than expected decreases in 2022.