So moving into a new place, you would want the transition to go smoothly and to pay as little expense as possible on living and whatnot. Sure, you’d expect to do the security deposts, gas, moving fees, and some kind of sales and income taxes.
Of course, Fairfax County in Virginia is the place that I’m moving to soon, so I expect to pick up some income taxes and sales taxes (Delaware has none). But then, I go to check out the tax rates site, and it turns out that there is a car tax as well.
Wait, say that again? Car tax?
Yep, that’s right. Fairfax County has an established car tax that charges residents (and non-residents and part-time residents) on any vehicle that is normally parked or garaged within the state/county. The current annual rate is at 4.57%. Wow. 4.57% is almost as much as your sales tax folks (4% VA, 1% Fairfax). That’s equivalent to paying sales tax on your nice car every single year. C’mon gov, that’s ridiculous.
Now, there was a Tax Relief act passed in 1998 specifically for the car tax that had exempt certain vehicles and certain values of vehicles to be exempt from portions, if not all, of the tax. Anything valued under $20,000 would be subsidized at 70%. That meant that you only had to pay 30% if your car was worth less than 20 grand. The current government policy is that the you have to pay 31.5% of the tax if you qualify for this tax relief.
Ok, so for me, that equates to about $175 per year in a car tax on a car that is completely mine, registered and licensed in Delaware, just so that I can “legally” park and garage my car in that county. Good grief.
I guess it’s time to start clipping those coupons again.