What I don't understand is how your county's rate is so low. After doing some research, I see where part of the problem is. Virginia has a significant personal property tax. Taxes on a 30K car in Fairfax Country would run around $1400. When I left California, plate taxes on a $30k would have cost roughly $300-400.
There is a tax rebate.
" * Vehicles qualified for tax relief are noted on your tax bill and show a reduction for the portion of the tax the Commonwealth will pay. For qualified vehicles; your tax bill is reduced by the applicable tax relief percentage for the tax year on the first $20,000 of value. Fairfax County will be reimbursed by the Commonwealth for the amount of the reduction once you have paid the balance due shown on your bill. If your qualifying vehicle's assessed value is $1,000 or less, your tax has been eliminated and the Commonwealth's share is 100%. Tax relief is calculated using Fairfax County's effective tax rate ($4.57 per $100 of assessed value) in effect on August 1, 1997.
o Since tax year 2002, the credit is 70% of the personal property tax on qualifying vehicles valued between $1,001 and $20,000."
fairfaxcounty.gov
So you only pay 100% of the tax rate on the value of the car over $20k. You pay 30% under $20k. A $20k car would cost you $274.20. A $30k car would cost you another $457 for a total of $731.20.
Having said that, Californians have an income tax whereas Virginia doesn't.
VA has a state income tax. I know because I pay it, but since you normally want a link -
swz.salary.com
Interestingly it seems that when you go up in income enough to have to pay a higher rate, you pay that higher rate on every dollar of income, not just on the amount over the limit for the tax bracket. Federal taxes don't work that way. If your $1 over the limit for paying any federal taxes you pay the lowest rate on $1 not on all of your income.
for VA, a Prop. 13-like measure is under consideration.
Good news, but it probably won't have much of an impact for awhile. We are probably at about the peak of the housing price cycle, at least in Northern VA.
Tim |
