Luxury Tax On Used Motorhome???

[WildCat]

I heard that there is a luxury tax on motor homes. 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?

Wildcat

[Dom Ferris]

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

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 makes a difference.

[The Newell]

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 deductible as a property tax. These taxes apply to all vehicles used on the public roads and streets.

[Wheeler]

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PROPERTY TAX ON MOTOR HOMES







By: Judith Lohman, Chief Analyst



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You asked whether other states impose property taxes on motor homes. In states where there is no property tax on such vehicles, you also asked what type of taxes their owners do pay.

For purposes of this report, we assumed that the term “motor home” refers to a type of motor vehicle that has living accommodations, can be driven from place to place on public highways, and is licensed and registered as a motor vehicle. Thus, unless there is a specific provision on such vehicles, the provisions described in this report relating to “motor vehicles” also apply to motor homes. Information in this report comes from Commerce Clearinghouse summaries of state taxes, state statutes, and a survey of state and local value-based taxes on motor vehicles by the National Conference of State Legislatures (1998).
States fall into three groups with respect to taxes imposed on motor vehicles or motor homes. Sixteen states, including Connecticut, subject motor vehicles or motor homes to local property taxes based on value. Eleven states levy state taxes on motor vehicles or motor homes. These taxes are based on a vehicle's type, value, weight, or a combination of these factors. Finally, 20 states impose no state or local taxes on motor vehicles or motor homes.
The states in each category are listed in Table 1. Table 2 summarizes the statewide taxes applicable to motor homes.
Table 1: Taxes on Motor Vehicles and Motor Homes

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Local Property Tax
State Tax
No State or Local Tax


Alabama
Arizona
Delaware


Alaska (1)
California
Hawaii


Arkansas
Colorado
Idaho


Connecticut
Iowa
Illinois


Georgia
Kansas
Louisiana


Indiana (2)
Maine
Maryland


Missouri
Massachusetts
Michigan


Montana
Minnesota
Nebraska


North Carolina
Mississippi
New Hampshire


Oklahoma
Nevada
New Jersey


Rhode Island
Utah
New Mexico


South Carolina

New York


Vermont (3)

North Dakota


Virginia

Ohio


West Virginia

Oregon


Wyoming

South Dakota




Tennessee




Texas




Washington




Wisconsin

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</center> (1) Alaska exempts one motor vehicle owned by a resident aged 65 or over from property tax.
(2) Indiana property tax applies to motor homes only.
(3) Vermont property tax applies to “trailer coaches” only, defined as “a trailer or semi-trailer designed to be towed by a motor vehicle and designed, equipped or used for sleeping, eating, or living quarters.” (Vt. Stats. Ann. § 23-4 (41))
Table 2: Summary of Statewide Taxes on Motor Vehicles or Motor Homes


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State
Tax


Arizona
Arizona's vehicle tax applies to the vehicle's “taxable value,” which is 60% of the manufacturer's base retail price for the first year after initial registration. This value decreases by 16.25% for each succeeding year. For the first year, the tax is $2.80 for each $100 in value.


California
California's basic annual vehicle license fee is 2% of the vehicle's purchase price, depreciated over an 11-year period.


Colorado
Colorado's annual specific ownership tax is based on a vehicle's “taxable value,” which is 85% of the manufacturer's suggested retail price, excluding federal excise taxes, transportation or shipping costs, and preparation and delivery costs. The tax rate is 2.1% in the first year and is reduced as the vehicle ages.


Iowa
Iowa charges an annual fee for motor homes that varies depending on the vehicle class and price. For new motor homes, the annual fee ranges from $90 to $400.


Kansas
Kansas imposes an annual state tax on recreational vehicles that is based on value and weight. For new vehicles, the tax is $70 plus $0.90 for each 100 pounds of weight.

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Table 2: -Continued-

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State
Tax


Maine
Maine has an annual motor vehicle excise tax based on the maker's list price. The tax rate decreases for older vehicles. The minimum tax is $5. For most motor vehicles the initial rate is 24 mills for each dollar of list price. The rate decreases to 4 mills per dollar after 6 years.


Massachusetts
Massachusetts requires local governments to collect an excise tax in lieu of any local property tax. The tax is $25 per $1,000 of valuation (2.5%). The minimum tax is $5. The state motor vehicle commissioner determines the valuation based on the manufacturer's list price for the vehicle's model, make, and year. Maximum valuations decrease as the vehicle ages.


Minnesota
Minnesota imposes an annual state tax based on vehicle weight. For passenger motor vehicles, including recreational vehicles and motor homes, the tax ranges from $15 to $1,760, depending on weight. For motor homes and recreational vehicles, the rate decreases to 75% of the first year amount as the vehicle ages.


Mississippi
Mississippi motor vehicle owners pay an ad valorem property tax on their vehicles when they pay their registration fees. Counties set the tax mill rates and the State Tax Commission sets a uniform statewide assessed value, reduced by certain percentages for depreciation over 10 years.


Nevada
Nevada imposes a 4% state motor vehicle tax. The tax base is 35% of the manufacturer's suggested retail price in Nevada, excluding options and extras, at the time the particular make and model is first offered for sale in Nevada. Vehicles are depreciated over nine years to a minimum value of 5% of their original base. Nevada also allows counties, after holding a referendum, to add 1% to the state tax to finance limited access highway projects.


Utah
In Utah, motor homes are subject to a uniform fee of 1% of fair market value.

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JL:ts

This chart is from 2008 may be helpful for some and you can see in more detail by going to the direct link PROPERTY TAX ON MOTOR HOMES (http://www.cga.ct.gov/2008/rpt/2008-R-0141.htm)

[folivier]

To clarify this Louisiana does have a sales tax of 8% + depending on which parish (county) you reside in. There is no yearly tax but a licensing fee of around $100 each year.
This is why many people choose to license their coach in an LLC in Montana, S. Dakota, etc.