VA Taxes and the new tax law

[Jtrving]

I have been contemplating the purchase of either a new Newmar MA or Entegra Anthem. At somewhere between 370 and 430, the tax burden here in VA is astronomical. I would be paying somewhere between 16-20K just in sales tax on the purchase.

The real killer comes annually, where my county will levy a 3.6% tax on the NADA value. So for the first year it would be 13,300- 15,500. Then every year after that it will be probably 5-10% less, depending on depreciation. So if i kept the unit for 10 years, I will have paid over 125K in tax, which is more then the value of my 2017 Bay Star!

To top things off, I believe the new tax laws cap the deduction for personal property taxes now at 10K per year, so between the house and cars, etc. there is basically NO deduction for any PP tax on the RV.

That is a ridiculously tough pill to swallow.

I am aware that storing it in King William would eliminate the PP tax, but it is almost 100 miles from me, and the LLC in Montana just isn't my cup of tea.

[marjoa]

WOW, that is a real eye opening comment on the "True Cost" of owning a MH in VA.

[V3600]

But just think of all the good your tax dollars will do for those less fortunate souls in VA. You'll be a civic hero. lol

[powerboatr]

not to be crude...but one more reason to move.

and its not just va.

my neighbor had his rv in ct. registration alone was over 3400 each year for his 40 foot tiffin, plus property tax...so they bought a place and built a nice rv storage house with port.
saving them thousands now each year....over taxation is a freaking crime.

[Mr_D]

The use tax on our used Magna here in WA was over $25,000 and that was on the price after the trade. Tax on the original sticker would have been $75,000.
But we don't (yet) have an income tax and the tags cost $125 a year in my home county

[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.

[Sonic]

Yep, here in California we got hit pretty hard as well. Even some diehard GOP house members in CA voted against this tax bill partially for this very reason.
And yes, the final bill caps personal taxes (state, local, and property) at 10k, which is definitely going to impact many homeowners in my area from a property tax writeoff perspective alone, and as the OP has stated, eliminates any potential sales tax write-off due to the cap.
It will be interesting to see what, if any, impact this has on sales volume for big ticket items.

[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.

[birddog2you]

That's why they call it a Commonwealth! They think it's their money not yours!

[CLIFFTALL]

We’ve begun to remove political posts as our Community Rules prohibit them. Please continue to discuss the topic without injecting politics.

[chunker]

Moving to avoid or change a tax payment can make sense but one has to look at the total picture, not just one part. Here in Alabama for sales of vehicles, we pay the difference of trade and sale price but only the state rate, not state/county/city/local. Works out to around 3.75% I believe. Tags are renewed at the county level and my coach tags, partly based on weight, was around $1300.

BUT because of my Social Security disability, age and homestead exemption, my property taxes on my home built in 2001 with 10 acres, detached garage and 2 pole/RV/equipment barns is $0. AL is also retiree friendly so my state income taxes are low, $0. Only my investments income gets taxed and deductions wipe that out.

When I renew my tags I cringe but then remember the total tax picture in my case. If I were retired and came from one of those high tax states, I would certainly move. Why do you think FL is full of north eastern yankees?

[bandit2026]

Check your pm

[wnytaxman]

Originally Posted by Jtrving

I have been contemplating the purchase of either a new Newmar MA or Entegra Anthem. At somewhere between 370 and 430, the tax burden here in VA is astronomical. I would be paying somewhere between 16-20K just in sales tax on the purchase.

The real killer comes annually, where my county will levy a 3.6% tax on the NADA value. So for the first year it would be 13,300- 15,500. Then every year after that it will be probably 5-10% less, depending on depreciation. So if i kept the unit for 10 years, I will have paid over 125K in tax, which is more then the value of my 2017 Bay Star!

To top things off, I believe the new tax laws cap the deduction for personal property taxes now at 10K per year, so between the house and cars, etc. there is basically NO deduction for any PP tax on the RV.

That is a ridiculously tough pill to swallow.

I am aware that storing it in King William would eliminate the PP tax, but it is almost 100 miles from me, and the LLC in Montana just isn't my cup of tea.

Yes the loss of the tax deductions for income, sales, property, and other taxes is definitely going to hurt a lot of us. In Virginia you do have the option of garaging your rig in a lower tax county. That is basically the only option short of moving that you will have. Ironically here in NY our only heavy hit is on the sales tax itself for an RV purchase. Our annual licensing costs are minimal and we can even get auto rates on the NYS Thruway with an EZ Pass. Of course we also have a high income tax and high real estate taxes.

One tactic that you might want to consider would be to “prepay” the sales tax on the rig. If you have finalized on a particular unit then you could look at the option of having your down payment go strictly to the sales tax. A lot would depend on your relationship with the dealer and the level of trust you may have in them. There is a risk in doing this, but you have to look at your particular situation.

[Sandy Swede]

Consider Delaware. The registration tax on a $400k rig with a $75k trade-in is $13,813 (4.25% x $325k). No personal property tax thereafter, only $40/yr for tags.

There is no state sales tax.

Real estate taxes are modest. For example, RE taxes on a $400k house would be approx $1,500. With the 'geezer discount' (age 65) of $600, your net would be $900. BTW, $400k will get you a very nice 2,500 sf house a couple of miles from the ocean. You can get a condo within walking distance of the ocean for $400k.

Because we are retired, state income taxes amount to less than 3% per year.

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