Yes. A sales tax is on the value of a transaction; a property tax is on the value of an asset. They are two separate and distinct types of taxes. Real estate taxes are due yearly, based on the value of the property.

Some states subject personal property to an annual "ad valorem" (on the value) tax. That tax can apply to tangible (motor vehicles, boats, etc.) and/or intangible (stocks, bonds, etc.) personal property. Ad valorem tax on a motor vehicle usually is due with license tag renewal.

I can explain it to you, but I can't understand it for you!

 

Any pics of your new Vette?

 

Yuck, I can understand the definition, just definitely don't want it. Just means that if I ever decide to move, I'll need to disqualify some states from consideration. Thanks for the warning!

 

I did not know this either. So Georgia and the Carolinas have this tax?

 

So does Kentucky

 

Every state I've lived in (fifteen+) have had a "fee" based on perceived value. These are the Utah fees, as that's where I live for now, and they are about par for all the other places I've lived. They are called different things in different locales, Utah says "Age-Based Uniform Fee" ->

 

Yikes! No such fee here (Chicago suburb, but then maybe Chicago does, I think they charge just to suck air).

 

In Georgia "ad volarem" can be waved in favor of the more traditional sales tax. We pay $20 for tags. I still have AV on my 14 year old F150 though.

 

I don't know about the Carolinas, but in 2013 Georgia saw the light and changed how they tax motor vehicles. A new, one-time Title Ad Valorem Tax on the purchase of a new or used vehicle exempted those vehicles from the annual "birthday tax" for as long as that vehicle is owned by that owner. If that vehicle is subsequently sold to a new owner, TAVT applies again. Older vehicles on which no TAVT was paid remain subject to the "birthday tax".

Because I bought my XKR before 2013, I still pay "birthday tax" on it each year when I renew my tag. The tax decreases every year because the value decreases. Last year, that tax was $312.69. I pay no "birthday tax" on my XJ because I bought it after 2013 and paid the TAVT at the time of purchase.

 

Not exactly. The owner of a vehicle subject to the "birthday tax" can "opt in" to pay the TAVT and get a new title. It's like buying that vehicle from yourself. Technically, that's not the same thing as a waiver. Whether this makes financial sense depends on the amount of TAVT and how long you plan to keep that vehicle compared to the projected "birthday tax".

 

What your not quite seeing, is the Property tax is very low. Compared to what it cost for just license plate in Illinois. It's like $200 a year just to renew plates and that's per car. In Arkansas the plates cost about, 20 to 30 dollars each vehicle, and then the property tax for my house 2 motorcycles and 4 cars is about 200 all together so for all my vehicles and Property taxes average around $300.00. I tried to give my son in Illinois a car and he told me to keep it. As the Title transfer, and fees, to switch it from Arkansas to Illinois were so much, he couldn't afford it. So when we went to Illinois for a visit I helped him buy a car up there.

 

In California we pay no tax on the car other than sales tax (about 9-10% depending upon the county) at the time of the transaction. But, we get clobbered on the license fee annually I will be paying $666 on my 13 XKR next month. In 2019 it should decrease unless they tack on another addition like they recently did to repair and update roads. Hopefully for once they will keep their word and use the money for what they have promised.

 

$666 is one hell of a license tag fee! I know everything's more expensive in California, but if that fee is based on the value of the car it's really a property tax and not a fee. In Georgia, the annual tag fee is separately stated on the bill at a flat $20 for everyone, regardless of the value of the car, together with a separate mail fee and, if applicable, the "birthday tax" and an additional fee for a custom vanity tag.

If you itemize deductions on your Federal income tax return and claim that $666 California license fee as an itemized deduction for state taxes, then you are saying that it is a tax because fees are not deductible.

 

Oh yeah, I forgot to mention....... here in Utah all my 'aged based fees' are waived, along with my primary home property taxes, because I'm a Disabled Veteran.

 

Utah is a progressive state because veterans don't have to be 100% disabled to qualify for state tax exemptions.
Georgia, on the other hand, requires veterans to be 100% disabled to qualify for tax exemptions. I'm 60% disabled due to Agent Orange exposure and get no tax exemptions from Georgia. Instead, I got a free lapel pin and a certificate thanking me for my service and can get one free license tag if I jump through enough hoops just to save $20. Knowing that I pay more in taxes makes me feel so much more patriotic!

 

Well, that's not quite right, it's $101 for regular plates, or $114 for my vanity plates. But that's flat rate, everybody pays the same, regardless of the car's worth or age.
Ok, if that statement really means it includes your house property tax, sign me up for Arkansas!
Title transfer = $95
License fee = $101
Sales tax = X% (depending on county) of however much your son paid you for the car, it it was $0, so is the sales tax (as long as you paid sales tax in Arkansas when you originally purchased the car).
So moving a car to IL could be as low as $196, with the recurring $101 plate fee.

 

I have it parked where when I get in the 'Vette, I see the XK up the hill, and when I get in the XK, I see the 'Vette down the hill.

Although on account of snow, the 'Vette is hiding out inside.

However, I did take it out to get pics before I finished this post.

I did a recon with another car, and the dead end road that my dead end drive way is off of wasn't salted, so a picture was in order.

 

Taxes, be it property tax, income tax, etc, you'll be paying taxes.

Look at your state/city/country spending and know it gets paid for some how.

The structure and name may vary from place to place, but paying to support the cost of government is still the same be it a fee, tax, etc.

One good thing to check is to compare per capita budget of where ever you might be choosing between moving. This will be indictive of the per capita tax burden that must be sustained to pay for it, be it sales tax, property tax, income tax, etc...

 

So, it looks like your state #48 in expenditure per capita. South Carolina spends about $400 more per person than Illinois.

 

Illinois doesn't charge you annually for license plates? That's a tax. In Arizona that tax is based on the original purchase price of the vehicle, and derated annually to a minimum fee at some distant date in the future.