Community Forums

Mac_in_VA · 01-31-2021, 09:04 PM

Hey guys! I hope you can help us.

We are getting ready to buy our first new class A RV in VA. And, I am SUPER confused about how the taxes will work. I want to make sure we understand all the costs before we saddle ourselves with a new RV.

How do the taxes work in VA?

I called around to find a place to store it. And, this one gentleman told me that if I store it in Prince Williams County I don't pay taxes. Could that be right?

If I buy my RV in Texas . . . do I still have to pay sales tax in VA?

We are total newbies and would appreciate any help you can give us!

saddlesore · 01-31-2021, 09:14 PM

Quote:

Originally Posted by Mac_in_VA

If I buy my RV in Texas . . . do I still have to pay sales tax in VA?

We are total newbies and would appreciate any help you can give us!

Yes, You will pay the VA sales tax,[out of state buyer], not the TX sales tax..

tetranz · 01-31-2021, 09:16 PM

I'm no tax expert so don't take much notice of me but in very general terms, I'm pretty sure that if your home state has a sales tax, you're supposed to pay "Use tax" to your home state when you buy something elsewhere and import it into your home state.

In theory this applies to someone from MA driving to "tax free" NH to buy a home appliance or something. In practice, I'm not sure how much of that gets declared but an RV is a bit more significant than an appliance.

wingnut60 · 01-31-2021, 09:27 PM

Normally, you will pay state sales taxes where you register the unit. Sometimes the dealer will collect taxes for the state you are in, and pay them for you. The taxes get paid one way or another.

arcaguy · 01-31-2021, 09:30 PM

Generally if you purchase an RV, or anything for that matter, out of state you will pay use tax when you bring into the state in which you live. In most cases you will also get credit for any taxes you paid out of state. The United State Constitution states in Article 1 Section 8 reserves to Congress the right to regulate interstate commerce. Due to this, most states don't require you to pay their sales tax is you are from out of state and will be leaving the state with the goods purchased immediately. California being a notable exception. Apparently their novel theory is that is if you take possession of the goods within the State of California you have consumated the deal in California and you owe the tax. Funny how 49 other states seem to disagree with this interpretation. Anyway, the best thing to do is to check with the state taxing authority in each state and see what they have to say. I would search the state of Texas web site for this or talk to the dealer if you're dealing with one. As to any personal property tax you may have to pay in your state I have no idea, but the county assessor or the country treasurer probably will. Good luck. BTW I have purchased 3 vehicles out of state and have never paid sales tax in the state where the purchase was made.

AnotherMike · 01-31-2021, 09:45 PM

Yes, some states charge use tax on out of state purchases. A number of years ago I purchased a used car from a friend out of state. I drove it back and registered it and was charged use tax. I was told by the registration lady that if I had drove it for 90 days out of state there would have been no tax.... Checking further, if the bill of sale had been dated 91 days (or more) earlier I would have been home free.

Check your local regulations. Depending on what you find out it may be worth buying in TX and taking your time (30, 60, 90, whatever days) driving the RV home to VA.

Also check the drivers license requirements. Some states require a different class of license to drive an RV over a regular vehicle. Some change the class required depending on weight. You have a VA license, and the RV may end up with TX temp tags. You might have to comply with the regulations of 2 states until you register the RV in VA when it drops back to 1 state. Do your homework.

Mike

New2road · 01-31-2021, 09:47 PM

We purchased our first coach from an out of state dealer, with delivery at the factory away from VA.

Dealer worked with DMV to sort VA sales tax ( got it wrong, charged us too much, and we had to sort with DMV/ Dealer then refunded overpayment to us) (off by thousands and the DMV was not interested in sorting refund on overpayment)

So, we paid VA sales tax. VA title and reg fees. we pay our personal property tax for the city we have our residence in, they do have a special rate for RV's. We did a two year registration, have to do annual vehicle inspection.

We did the DMV work before heading to get the coach. Brought our tags with us to factory pick up. did the inspection upon return to VA.

PPT comes just like it does for your car at the end of the year.

j

txcpl · 02-01-2021, 05:41 AM

Unfortunately, not all states have a reciprocal tax policy in place. Be careful, as you could end up paying taxes in 2 different states. Each state is different, so check both states to get the complete info. Also, if you are getting a lien on the RV, transferring the title from one state to another can be costly as well. You can register the RV in one state and have it titled in another.
Been there Done that.

Sweetbriar · 02-01-2021, 07:15 AM

Regardless of who you buy from, dealer or private, or where, in or out of state, you will pay Virginia sales tax and registration fees when you go to the DMV. Current rate is 4.15% of the sale price or $75 which ever is greater. With an in state dealer purchase the dealer can sometimes do the work and connect the fees/taxes and save you a trip to the DVM.

Buying out of state may or may not be beneficial. You need to check. I purchased out of state in South Carolina and was not required to pay anything to South Carolina. On the driving home all I had as a bill of sale and a dealer's advertising for a license plate. Went to my local Va DVM the following weekend where they demanded their tribute.

The Prince Williams County thing is Personal Property Tax and is assessed differently by each country. Where you store or garage the rig is what counts and not the registration address. Another "you need to research" item. If you have to store away from home it may cost a lot less to store an hour away in the next county and not pay the excessive property tax. Since my coach is older and the assessed value is low the tax Suffolk demands is much less than what monthly storage could be so I keep the coach in the driveway.

Yearly registration works just like your daily driver. You'll get a renewal notice in the mail and pay for the number of years you want to renew. Virginia has no special driver's licenses endorsement requirements for you to drive your coach.

Busskipper · 02-01-2021, 07:21 AM

Quote:

Originally Posted by New2road

We purchased our first coach from an out of state dealer, with delivery at the factory away from VA.

Dealer worked with DMV to sort VA sales tax ( got it wrong, charged us too much, and we had to sort with DMV/ Dealer then refunded overpayment to us) (off by thousands and the DMV was not interested in sorting refund on overpayment)

So, we paid VA sales tax. VA title and reg fees. we pay our personal property tax for the city we have our residence in, they do have a special rate for RV's. We did a two year registration, have to do annual vehicle inspection.

We did the DMV work before heading to get the coach. Brought our tags with us to factory pick up. did the inspection upon return to VA.

PPT comes just like it does for your car at the end of the year.

j

Think this might pertain to what you are referring to The Personal Property Tax in Virginia is the Big Difference in that State.

Guessing (No Knowledge - Legal or otherwise) that the Big Issue is PPT on the Location PP is Kept.

Best of Luck,

USMCRET · 02-01-2021, 07:40 AM

Personal property taxes in VA are based on the county in which the RV is garaged, and each county has a different tax schedule. Prince William county does not tax RVs as personal property. Therefore, storage lots in PW county are thriving businesses. With the current RV buying frenzy, there are no open slots that I have found.

I’m in Spotsylvania county. Spotsy taxes your RV at a rate of 6.5%. For the year it is bought and the year thereafter, you are taxed on 50% of the purchase value. After that, it is on a sliding scale for the next three years until it bottoms out at 20% of the purchase price. It remains at that level for as long as you own the RV.

Check with your county tax office.

Seon · 02-01-2021, 07:46 AM

VA will get their money one way or another.

Busskipper · 02-01-2021, 08:03 AM

Quote:

Originally Posted by Seon

VA will get their money one way or another.

I remember this from when I was in Elementary School (50's)- we lived in Virginia and my Dad registered the car in Georgia - being military it was his Home State - as a kid I just thought it was Neat to have Georgia Tags - not understanding, till later, that it was sort of the llc for the Military, so they could avoid taxes. -

Those Georgia tags, stayed on that old Mercury Station wagon - in California then Connecticut, till it was sold/traded in, in Maryland. -

My Dad said it was Crazy for Virginia to Charge PPT on a Vehicle every year - when as a military person he had a choice as to where to register his vehicle.
Needless to say, we never returned to live in Virginia. -

Think it might be smart to really understand this as it is a substantial $$$ over the life of the RV. -

JMHO,

Mac_in_VA · 02-01-2021, 08:37 AM

Quote:

Originally Posted by Sweetbriar

Regardless of who you buy from, dealer or private, or where, in or out of state, you will pay Virginia sales tax and registration fees when you go to the DMV. Current rate is 4.15% of the sale price or $75 which ever is greater. With an in state dealer purchase the dealer can sometimes do the work and connect the fees/taxes and save you a trip to the DVM.

Buying out of state may or may not be beneficial. You need to check. I purchased out of state in South Carolina and was not required to pay anything to South Carolina. On the driving home all I had as a bill of sale and a dealer's advertising for a license plate. Went to my local Va DVM the following weekend where they demanded their tribute.

The Prince Williams County thing is Personal Property Tax and is assessed differently by each country. Where you store or garage the rig is what counts and not the registration address. Another "you need to research" item. If you have to store away from home it may cost a lot less to store an hour away in the next county and not pay the excessive property tax. Since my coach is older and the assessed value is low the tax Suffolk demands is much less than what monthly storage could be so I keep the coach in the driveway.

Yearly registration works just like your daily driver. You'll get a renewal notice in the mail and pay for the number of years you want to renew. Virginia has no special driver's licenses endorsement requirements for you to drive your coach.

THANK YOU SO MUCH!!! This is what I needed to know. It seems that we have some crazy tax laws here in Virginia and I needed someone that lives here to help me decipher.

Where would I go to figure out the county tax regulations? Where do I check? I know the sales tax is unavoidable. But, if it would save me $5K to $7K a year to store it in Prince William's . . . . I can do that.