August 12th, 2013 at 12:36:26 AM
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Hello,

This is my first post. I've been lurking around here for the past few months. I was hoping you guys can help me figure out what the vehicle license tax will be on my new car. Here is what he AZ MVD says

The VLT is based on an assessed value of 60% of the manufacturer's base retail price reduced by 16.25% for each year since the vehicle was first registered (15% before 8/1/98). Then, as of the Dec 1, 2000 reduction, the rate is calculated as $2.80 (new vehicles)/$2.89 (used vehicles) for each $100 of the assessed value. For example, for a new vehicle that costs $25,000, the first year assessed value would be $15,000 and the VLT would be $420.00. The second year the assessed value would be $12,562.50 and the VLT would be $363.06.

The MSRP for the car is $38,700 and was first registered in 2009.

Any help is much appreciated.

Thank you.

This is my first post. I've been lurking around here for the past few months. I was hoping you guys can help me figure out what the vehicle license tax will be on my new car. Here is what he AZ MVD says

The VLT is based on an assessed value of 60% of the manufacturer's base retail price reduced by 16.25% for each year since the vehicle was first registered (15% before 8/1/98). Then, as of the Dec 1, 2000 reduction, the rate is calculated as $2.80 (new vehicles)/$2.89 (used vehicles) for each $100 of the assessed value. For example, for a new vehicle that costs $25,000, the first year assessed value would be $15,000 and the VLT would be $420.00. The second year the assessed value would be $12,562.50 and the VLT would be $363.06.

The MSRP for the car is $38,700 and was first registered in 2009.

Any help is much appreciated.

Thank you.

August 12th, 2013 at 1:53:52 AM
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For others in this forum, note that VLT stands for Vehicle License Tax in this thread and not the standard definition for this forum, Video Lottery Terminal.

2009 value: (0.6)*$38700 = $23220

2010 value: (0.6)*$38700*(0.8375) = $19446.75

2011 value: (0.6)*$38700*(0.8375)^2 = $16286.65

2012 value: (0.6)*$38700*(0.8375)^3 = $13640.07

2013 value: (0.6)*$38700*(0.8375)^4 = $11423.56

2013 tax: $11423.56*$2.89/$100 = $330.14

Sincerely,

Unemployed PhD Chemical Engineer who can't afford a car like this.

2009 value: (0.6)*$38700 = $23220

2010 value: (0.6)*$38700*(0.8375) = $19446.75

2011 value: (0.6)*$38700*(0.8375)^2 = $16286.65

2012 value: (0.6)*$38700*(0.8375)^3 = $13640.07

2013 value: (0.6)*$38700*(0.8375)^4 = $11423.56

2013 tax: $11423.56*$2.89/$100 = $330.14

Sincerely,

Unemployed PhD Chemical Engineer who can't afford a car like this.

August 12th, 2013 at 2:11:53 AM
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Thanks for the quick reply. If you don't mind me asking where did you come up with .8375^x?

August 12th, 2013 at 6:55:24 AM
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Quote:MartinARMTThanks for the quick reply. If you don't mind me asking where did you come up with .8375^x?

That's 100%-16.25%, raised to the number of years since 2009.

"So as the clock ticked and the day passed, opportunity met preparation, and luck happened." - Maurice Clarett

August 12th, 2013 at 11:22:06 AM
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Quote:rdw4potusThat's 100%-16.25%, raised to the number of years since 2009.

Yep, so for each year you own the car you have to multiply by 0.8375, so next year's amount is this year's amount multiplied by 0.8375, 2015's is this year's amount multiplied by 0.8375 squared, 2016 is this year's amount multiplied by 0.8375 cubed, and so on.

This problem reminds me why Illinois's flat system is much nicer and currently cheaper.