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Old 01-04-2013, 10:27 AM   #18
pfb
Riding, not skiing.
 
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Joined: Oct 2003
Location: Boulder|Denver|Winter Park
Oddometer: 5,366
Most of the high fees are "Ownership tax". In addition to the sales tax paid at purchase, they are paid every year on a declining scale. Completely different from registration fees, though collected through the motor vehicle department.

Works like this:
  • 1st year of service: 2.1% of taxable value
  • 2nd year of service: 1.5% of taxable value
  • 3rd year of service: 1.2% of taxable value
  • 4th year of service: .9% of taxable value
  • 5th, 6th ,7th, 8th & 9th: .45% of taxable value
  • 10 and all later years: $3.00 flat fee.
For passenger vehicles, light trucks, and motorcycles, "taxable value" = 85% of MSRP.


If you buy a new $50,000 truck, you will pay ~$3,500 sales tax (+/- depending on city/local tax rates) plus another ~$2,600 in 'ownership tax' in the first five years of use!

(ps: Ownership tax is typically deductable on your federal and state tax returns, so at least you are paying those fees in pre-tax dollars )
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pfb screwed with this post 01-04-2013 at 10:34 AM
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