VA Taxes and the new tax law

[Jtrving]

It was 3% for the longest time and is now 4.15% effective July 2016.

State inspections are annual.

It's really the personal property tax that is tough. Year after year. It never bothered me when it was deductible, but now that it is capped it really hits home.

[alpha99]

Buy. Used. private seller. save $$$$$

[johndfd]

I Don't want to come off the wrong way, so I'm trying not to offend.

Did the people who live in the high tax states just figure out that your local taxes are outrageous? They were sky high many years before the recent income tax re-write. I would move before I paid north of 10 grand per year for my motor home. All the sudden...oh no I can't deduct my over priced taxes!

Case in point, my wife is from Mass. The roads in her home town are worse than roads I encountered in Iraq, and they don't fix roads in Iraq, nor patch IED holes. I don't know what they do with tax $ there, but it doesn't fix roads, or paint any sort on lines on them. Uber high tax state...

I'm also a Delaware resident (Kent County), fairly low taxes, but crime and other bad issues are really ramping up. We are now in the top 10 of crime states. It is ok here, but not utopia in my opinion. As more and more MD, NJ, PA, and NY people come here, it is slowly turning into those states. I've talked to many transplants who were shocked when it takes an extended time to get a police officer to their home, and when snow hasn't been plowed for days after a major snowfall.

[Russ Silber]

Florida no income tax just a one time sales tax . my plate is 32 bucks a year for my 36ft Newmar. Insurance is also a lot cheaper then other areas.

[FatChance]

This is one of the best parts of having sold all the "stuff", buying a RV with cash from the proceeds to live in, choosing a new domicile based on real and affordable costs and going then going full-time. I feel bad for those who are stuck with these foreseeable realities of the new tax situation.

[777 Driver]

Originally Posted by Jtrving

It's really the personal property tax that is tough. Year after year. It never bothered me when it was deductible, but now that it is capped it really hits home.

Prince William County is approx. 110 miles away with $0.00 Personal Property Tax on RV's. $24/year RV registration fee.

I know it's not convenient to store your RV 110 miles away...but...consider the savings vs. the inconvenience.

Take care,
Stu

[RLH241]

I lived in Virginia for 43 years. I was in the military for the first 20 and avoided paying Virginia taxes. But the last 23 years I was a Virginia resident, so I know exactly what you're talking about with the vehicle tax. Virginia is considered a moderately low tax burden state, but that only applies if you drive a relatively cheap car. It goes out the window if you own expensive automotive toys, boats or RVs. I had the misfortune of living in Fairfax County, where the vehicle tax was 4.56% on the assessed value. So I paid dearly for my vehicular "habit." I recall that Fairfax used NADA value on cars and trucks, but on RVs they determined the assessed value as a percentage of the purchase price, starting at somewhere around 60% the first year and then reducing that percentage each subsequent year. If that's the case in Powhatan, then your annual RV vehicle tax would be a little less than you're calculating.

If your calculations are correct, then housing that RV in Prince William county is really the only way to go -- assuming moving out of the state is not an option. Even if you opted for secure indoor RV storage (say, $6K a year), you'd still save a ton of money on vehicle tax. Of course, you'll have a lovely 100-mile trip up I-95 every time you wanted to use the RV. But at least the new MH is sitting safely indoors, out of the elements.

We moved to Tennessee when I retired a couple of years ago to escape the high cost of Northern Virginia. I estimate we saw a 35-40% reduction in the cost of living here in the Volunteer State.

[CWSWine]

Warning Off Topic Kinda.

I had a 1958 restored Corvette but it had period correct mags instead of the hubcaps it came with from the factory. They wouldn't let register it as a antique car since it wasn't restored to 100% original. They assent the value of the car at $1.00 and I had pay property tax on that 1.00 but they round up to the nearest dollar so my tax bill was $1.00. So I guess I was asset 100 percent tax.

[DryCreek]

Boy how I remember the personal property taxes and city stickers we had to buy when I lived in Newport News.

I really don't miss them.

Luckily for us, at that time we could only afford older RV's. The tax bite - while still there, was more easily managed for a young two-income family.

I think that the solution for finding a county with lower personal property tax rates seems reasonable. But, are you prohibited from ever leaving your unit at your current residence? If you plan to store the RV over the winter at the lower cost county, wouldn't that work the same?

[wildtoad]

Originally Posted by USMCRET

I don't understand this point. Would you mind expounding?

They way I look at it, if you are getting a tax break for what you paid in taxes which results in you paying less, someone else has to make up that money in the form of higher taxes. Regardless of what one thinks of property taxes, someone has to pay the bills.

If someone buys a discretionary item they should pay all the costs for that item. If they have to borrow money to afford that item they should not be able to deduct the cost of the loan (aka interest) from their federal taxes. If they owe PP taxes to the city/county/state for that item they should not get a break on their federal taxes. It’s all part of the cost of owning a pleasure item.

A different stance might be taken for primary housing, but we are the only country that allows interest on a mortgage to be deducted and it too is a bad idea.

[Highway 4x4]

Looks like there is going to be some real pain adjusting to the new rules. If you are over extended and relying on the tax deductions to have stuff, your in for some changes. If you have a million dollar home and a $400K motorhome, perhaps a vacation home, you are not middle class. Everyone cried for the tax loopholes to be closed for the rich, well you got it. You can still be rich, but now you have to pay for it.
In Newport Beach Ca, houses on the water start at about 7 million and about 10% of them are full time residences. Tax deduction gone.
The real question is, how will these changes effect the average guy.

[Mekanic]

Originally Posted by Coral

We bought our coach this year and paid the Ohio sales tax which I'll deduct this year, I'm glad we did not wait until 2018 which was the original plan. Ohio annual plate is about $40.00 a year. We do have state income tax though.

X2 on that. Come on over to the Buckeye state I bet if you looked around you could find a place you might like here.
We even have a Great football team in Columbus.

[kjsportster]

Originally Posted by triplewide

If you can and want to, move a few miles south to North Carolina. Sales tax on an RV is capped at $500. Annual taxes and fees are $650 on an $80K RV. Yours would probably be $3K per year, based on value. Too bad you can't buy a spot in a campground near Asheville in the Blue ridge mountains and register the RV in NC. The difference in taxes would pay for the campground with $ to spare.

North Carolina would love to have you.

Sales tax on luxury items is capped $1,500 in NC

[FlaRider]

Originally Posted by chuckftboy

You all make me very happy that I bought and registered my coach in Florida.

You still have to pay the 6% Florida sales tax?