RV Tax

[Silverbackman]

Sorry, I accidentally posted in the General Topics forum......but since I'm a newbie it should probably go here.....sorry.

I heard that there is a tax on RVs. What type of tax is this? Is this a one time tax? Or do you pay it yearly or monthly like a property tax no matter how long you own it? How do RV taxes work?

 

[Chet18013]

Strictly depends on your state of residence

Chet18013.

 

[John From Detroit]

As Chet said taxes vary from state to state, For example here in michigan I pay a one time sales tax and an annual property tax (Called a registration fee) which, since it is based on the value of the vehicle, is deductable as property tax.

Some states have a flat rate registration fee, or a weight based fee (NOT a property tax, not deductable)

Some states tax a motor home like it was a house.

Some states... Well, each state is different.

Some times even which COUNTY you are in (Example Nevada) makes a difference.  Do not register in Clark County NV

 

[cuts_up]

We had to pay an exta tax when we bought ours, but only because it's diesel.  It was a one-time fee, not yearly.  We live in Texas.

 

[Carl L]

Sorry, I accidentally posted in the General Topics forum......but since I'm a newbie it should probably go here.....sorry.

I heard that there is a tax on RVs. What type of tax is this? Is this a one time tax? Or do you pay it yearly or monthly like a property tax no matter how long you own it? How do RV taxes work?

As others have said, it all depends on your state.  California for instance has a sales tax, which varies from about 7% to 8.5% depending on county and a state tax based on current value.  The latter is deductable as a property tax.  These taxes apply to all vehicles used on the public roads and streets.  They even hit boats for analogous taxes. 

 

[Silverbackman]

So no matter where you go you have to pay an annual property tax? Are there any places in the US where you don't have to pay any annual taxes? I don't mind paying any one time sales tax.......it's that continues tax for how ever long you own it is what bothers me.

BTW, what if you don't register to a single state? What if you are always on the move?

 

[BernieD]

So no matter where you go you have to pay an annual property tax? Are there any places in the US where you don't have to pay any annual taxes? I don't mind paying any one time sales tax.......it's that continues tax for how ever long you own it is what bothers me.

No, as others have said, the annual tax depends on the state the vehicle is registered in. There are a good number of states that only charge sales tax and maybe $100-$300 annual registration fee. No different than the annual registration fee you pay for your car's license plates, tho the rate schedule may (or may not) be different.

BTW, what if you don't register to a single state? What if you are always on the move?

You have to decide on a state of "domicile". That is where you vote and pay your state income taxes. You have to comply with the requirements of that state as a resident. That is where you register your vehicle and pay your taxes. Many RVers select their state of domicile based on vehicle registration costs and income taxes, but they do have to meet that state's eligibility requirements.

 

[Carl L]

So no matter where you go you have to pay an annual property tax? Are there any places in the US where you don't have to pay any annual taxes? I don't mind paying any one time sales tax.......it's that continues tax for how ever long you own it is what bothers me.

BTW, what if you don't register to a single state? What if you are always on the move?

In all 50 states license plates are issued with an annual sticker.   The license must have a current year and month sticker.   No pay, pretty soon no car -- it gets towed.   Happened to one my kids in the days when she was dumb. 

Pay up.  It is cheaper.

 

[caltex]

On my motor home (registered in Texas) I had to pay a sales tax (one time) and then an annual license plate fee.  Not bad.  On my boat (registered in California) I paid sales tax and an annual property tax equal to about 1% of the value.  Big hit every year. Other states have no sales tax, but I don't know about the other taxes they might charge.

 

[Shayne]

No Sales Tax in Montana and our yearly plates started at $286 and have been going down to $119 this year and next.  Then It's $158 for Permenet plates with no annual after it is 11 years old.  Also our Permenant Tag on our 2006 car hauling trailer was $232 with no renewal needed.  Therefore no property Taxes either.

 

[Wendy]

Oregon - no sales tax, vehicle registration for 4 years on our 28-foot Class A would be $485.

 

[RLSharp]

In spite of New York's reputation for high taxes, taxes on motor homes are quite low compared to most states. Until 2006 I paid $75.00 for two years ($37.50/yr) of vehicle registration. This had been true since 1992 when we purchased our present motor home (34' Itasca Suncruiser with a GVWR of 17,000 lbs). In 2006 the rate went up to $112.00 for two years ($56.00/yr). I think that the rate is based on weight but am not sure. My cars cost $15.50 and $17.50 each per year.

In New York State we have a property tax which is high if you are under 65 years of age but is actually reasonable if have reached that magic age. Our property tax which is based on income and does not include IRA income is only 40% of what a non-retire person with ordinary income would pay. Motor homes are not included in the property tax, just real estate. We also have an annual vehicle inspection fee which I believe is $21.00 per year.

On a side note, New York does not tax Social Security income and after reaching 59 1/2 years of age gives everyone a $20,000.00 income exemption which comes right off of the top of ones earnings. Our New York State income tax liability is only a couple hundred dollars.

Several people have asked us why we continue to us New York State as our state of residence. Since we spend 6-8 months out of the state, it really is not a bad place for a retired person living off of Social Security and IRA income to continue to call home.

Richard
Rochester, NY

 

[BernieD]

Richard

At one time, the NYS sales tax rate was extremely high and New York got a bad reputation as a high cost state. It is turning out that many other states, when including local sales taxes, are getting as high or higher than NY. I hadn't even thought of NY as a tax haven  , thanks for the memory jog.

 

[Gary RV_Wizard]

So no matter where you go you have to pay an annual property tax?

Not at all - I think you misinterpreted the replies. Some states have personal property taxes that apply to vehicles (including RVs) but most do not. And in some states that do not have a property tax, you MAY pay an annual vehicle licensing fee based on vehicle value and that can be expensive for an RV.  But in the majority of states you pay only a weight-based, annual vehicle licensing fee that is usually quite reasonable, typically in the $40-$100 range.

As for where it is registered, you can drive it anywhere you like but you register it in only one place. There is no need to continually move your registration around. If you do not have a fixed home base somewhere, you will need to determine what state will be your domicile (legal residence) and the location used for your driving license and vehicle registration is one important factor in determining that, but not the sole factor.

 

[RLSharp]

Richard

At one time, the NYS sales tax rate was extremely high and New York got a bad reputation as a high cost state. It is turning out that many other states, when including local sales taxes, are getting as high or higher than NY. I hadn't even thought of NY as a tax haven , thanks for the memory jog.

Bernie,

Don't get me wrong--New York State is still an extremely highly taxed state, if you are not 59 1/2 and still working, as well as living full time in the state. The unfortunate people living in New York City and it's Burroughs really get killed by taxes. If you are retired, there are a lot of tax breaks that most people do not realize exist, especially if most of your income is from an IRA's and Social Security. I took the lump sum payment from Kodak when I retired and rolled it into an IRA, so we do not have much NYS tax liability. Another big break we get is when purchasing long term health care insurance. About 25% of the premiums go directly to offset NYS income tax.

Your are right about other areas having a sales tax rate higher that some areas in New New State. I believe that Rochester's sales tax rate is either 8.0% or 8.125%. We certainly pay more than that in Quartzsite.

Richard

 

[Gary RV_Wizard]

It is turning out that many other states, when including local sales taxes, are getting as high or higher than NY.

Not many, Bernie. NY has a high sales tax plus a high state income tax. And a generally high cost of living if you happen to be physically there.

 

[BernieD]

Richard

Here in Goodyear, the sales tax rate is 8.3%, QZ is over 10% I believe. However, my property tax here in Goodyear is still less than 1/3 of what I was paying on a less expensive house in New Rochelle, NY. But car/RV registration is low in NYS, as you said, but 10-20 times higher in AZ. Many factors to consider and they all have to be evaluated for each person's particular situation. I for one would not recommend using the NYC metropolitan area as domicile, it just isn't affordable. But there are much more affordable areas in NY State.

 

[Silverbackman]

So in other words the charges/taxes for owning an RV is basically the same as owning any other vehicle in most states, correct? Just the car's license plates annual fees like any other cars. And this equally applies to all classes of RVs (Class A, B, or C; as well as truck campers)?

BTW, what states are the best to register your RV (least regulations, least taxes, ect.)? What are the worst?

And in some states that do not have a property tax

Somes states don't have property taxes? What states do you speak of? To my knowledge every state in the US (and nearly all countries) have property taxes at least at the county or local level.

 

[Gary RV_Wizard]

Somes states don't have property taxes?

I was referring to personal property tax, not just land & building taxes.  Should have included the word "personal" in that line.  Sorry for the confusion.

Some states assess an annual  tax based on the value of anything you own, including RVs, cars, boats, etc.  South Carolina is an example. It's a method of taxing accumulated wealth rather than current income.