motorcycle owners being taxed unfairly
Posted in Legislation by Merlin on December 14, 2005
This article was taken from from an OpEd in the Clinton Ledger (Mississippi) written by Thomas C. Gerity.
The Mississippi State Tax Commission recently decided to double and in some cases triple the ad valorem tax on motorcycles. The Tax Commission now directs the collection of more tax on new motorcycles than it does on cars and trucks that cost twice as much.
For as long as I can remember, the state taxed motorcycles from value schedules based on the displacement of the engine. On Sept. 1, the Tax Commission began using a computer program purchased from R.L. Polk & Co. to calculate the assessed value of each motorcycle. The Tax Commission has denied my Public Records Act request for access to the program.
There are four problems with what is now going on:
The sales tax on new motorcycles is 7 percent. Purchasers of new cars and trucks are charged only 5 percent.
Under the current system for collecting ad valorem taxes on cars and trucks, the tax is based on a figure which is 90 percent of Manufacturers' Suggested Retail Price. The calculation of the tax on motorcycles uses MSRP as "true value."
Owners of cars and trucks receive a "legislative tax credit" which significantly reduces the ad valorem tax they pay when they purchase and renew their tags. This tag credit does not apply to motorcycles.
The taxation of motorcycles is done in secret, out of public view.
The bottom line is that the state decided this past September to make motorcyclists shoulder an even more unfair share of the tax burden.
The owner of a motorcycle is going to get a very unpleasant surprise when the time for tag renewal comes. I know I did — $732.94 for one year.
I checked the Miss. DMV site and in addition to all sorts of other fees, it does appear they assess a higher Sales Tax for Motorcycles at a rate of 7%, putting them in a class with boats, trailers, and campers. A 5% rate is assessed for automobiles, motor homes, and pickup trucks. As far as the ad valorem tax, they just state: "based on Assessed Valuation of vehicle & local millage rates" which seems a little suspicious. The good news is the "Privilege Tax" on MC's is $7 less than Cars.
I checked a few other states and didn't find a disparage for the ad valorem tax.
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Comments
- Mr. Different says:
posted on: 12/14/05 11:00 AM
Sounds like a bunch of crap to me. Thankfully I live in PA and dont have to worry about that.
- frmrpat says:
posted on: 12/14/05 11:30 AM
Holy cow, that is indeed highway robbery. Montana instituted a permanant lisceneing scheme. I think my 97 vs1400 was 100 bucks and now I am good forever.
- RC23 says:
posted on: 12/16/05 2:45 PM
"...I checked a few other states and didn't find a disparage for the ad valorem tax..."
"disparage"?
Merriam webster says:
"Main Entry: dis·par·age
Pronunciation: di-'spar-ij
Function: transitive verb
Inflected Form(s): -aged; -ag·ing
Etymology: Middle English, to degrade by marriage below one's class, disparage, from Middle French desparagier to marry below one's class, from Old French, from des- dis- + parage extraction, lineage, from per peer
1 : to lower in rank or reputation : DEGRADE
2 : to depreciate by indirect means (as invidious comparison) : speak slightingly about
synonym see DECRY"
Merlin, dude, exactly what did you mean to say?
I'm not gonna post here anymore if you guys continue to butcher the language...this ain't the IA forums y'know, and there's an actual REAL BIKE MAGAZINE EDITOR among the contributors.
C'mon...
- ozarkmark says:
posted on: 12/16/05 9:52 PM
This tax is unfair for everyone wanting to get into motorcycling and conserve on gas if they want a new bike.
If you live in Mississippi, please contact your state representative and tell them what you think!
- Careless Navigator says:
posted on: 01/10/06 2:13 PM
Maybe you should look into an address in a neighboring state and license your bike there? Might work!
- cliff says:
posted on: 01/12/06 10:56 PM
Miss.is known for high tax,low pay,welfare,ripoffs,racial problems,crooked politics etc.Time to get on bike go to greener pasture.
- nathan says:
posted on: 01/15/06 5:07 PM
I think he meant disparate instead of disparage
- R HARRIS says:
posted on: 01/17/06 6:37 PM
ABATE CAN GET THE HELMET LAWS CHANGED-THEY SHD BE ABLE TO TAKE ON THIS INJUSTICE. CONTACT THEM
- Virginia and Mississippi BOTH Suck says:
posted on: 01/18/06 4:04 PM
Well, ain't that some s**t! I think that "personal property tax" is an autrocity to begin with. I mean, give me a break, you pay sales tax on the fu**in' thing when you buy it, you pay $20-$50 per year for a goddamn sticker to update your tags. Hell, here in Virginia we even have to have a "County Sticker"(which is in essence a $25 receipt showing you paid your "Ad Valorem") and "Inspection". I have a Yami V-Star 1100 Custom and here are last years costs. "Ad Valorem" = $48, Tags = $27, County Sticker = $25, Inspection $5.
I do pity you, sir. Mississippi is the most po' dunk state in the whole damn country with by far the worst roads I've ever seen and they charge taxes like that?! Where the hell is the money going?! Virginia is the 3rd richest and our car sales tax is only 2% - same for bikes/boats/trailers/etc. Albeit we do pay that other crap, but 5% on cars and 7% on bikes!? Jesus Christ, with tax revenue like that, Mississippi ought to be swimming in dollar bills! I agree with "Cliff", you need to move!
- Michael LaChiana says:
posted on: 02/16/06 6:10 AM
- Michael B. says:
posted on: 02/16/06 6:21 AM
This ad valorem tax is the most stupid thing going. I once lived in NC and they have that tax rip-off there. Every year you are taxed on the book value of your vehicle. They charged me book value of lets say $4000.00 on a vehicle that was worth maybe $1500.00 because of mechanical problems and body damage. I wrote a letter to the State affirming this and told them if they wanted to see this vehicle, they are more than welcome to do so. They re-adjusted the dollar amount of my vehicle without even looking at it. So , all I can say is that you can fight city hall and win. My opinion stands that the officials are stealing your money. You pay taxes when you buy the vehicle (property tax) and every year you continue to pay property tax . To me that is called double dipping.
- Revrider says:
posted on: 03/23/06 8:20 AM
WOW, In Minnesota, I pay $14.95 for either bikes, My 1999 1500 Intruder and my 2005 Honda Gold Wing.
- 06 Softail says:
posted on: 03/30/06 10:26 AM
I just about had a stroke when I bought my tag.....$625.00 !! I don't mind paying my share, but this is outrageous. I asked the woman at the courthouse about it and she couldn't give me an answer. I don't understand all of this........I buy a new bike, have insurance coverage, buy a state issued inspection sticker and pay all of the necessary taxes just like an automobile and they slam a $625.00 tag on it? For the price that I gave for this motorcycle, a car in the same price range would't have a $600.00 dollar tag on it !! I was told it was more or less a luxury tax......how do they know that this isn't my primary source of transportation ?
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