RTA Tax Rant

"StudyStudyStudy" (jesterjin) 02/09/2018 at 16:30 • Filed to: None

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Ugh, just got the tab renewal notice slip.

$390. $322 of which is the RTA tax. It was over $400 last year.

For those of you not in the Seattle RTA area, they basically asked voters to vote for an increase in vehicle tax from 0.8% to 1.1%, it used to be a flat $30 years ago on top of licensing fees and an emissions test every other year, so usually about $115 a year. A small increase to compensate for failing infrastructure? Sure it is our civic duty. What was not clearly outlined was that they also switched the way they determine vehicle value. Instead of following a normal depreciation curve or published values, they determined their own curve which is way off. So even though my car is a 2016 model with an unreasonably high MSRP, (that was nuked down by previous models having a nasty habit of cracking engine blocks and having an even shoddier interior), which as a result I leased at a very small overall value, I’m stuck paying a 1.1% tax on 90% of the dealer invoice inflated MSRP, which is more than my monthly payment, nearly double my monthly payment last year.

The upsetting part, is I just looked up the value of my car, KBB puts it at $16,000, for which I am thankful that I did lease, but paying tax on almost double the estimated value is pretty upsetting.

There was a story about someone buying a used, top of the line range rover. They are paying tax on almost double the estimated value, despite the fact he paid far far less then even the estimated value. For numbers a 2010 range rover is about 20k. If they purchased it privately it could be as low as 15k. The RTA says it still has a value of over 40k.

The best part is, people are upset. Those who bought new or moderately new vehicles in the area are getting some ludicrous numbers not reflective of actual car value. So an attempt to equalize the playing field, to use published vehicle values has been met with basically stone walling. First they responded that they would employ a whole 6 people to address complaints. Then they sent out this letter that basically says, “Sound Transit has already sold bonds, we have a responsibility to repay those bonds in a timely manner and as such cannot change anything for the next 25 years. Vehicle tab fees will return to a more reflective value in 2028.”

Good news is there is going to be a slight increase in demand for slightly older cars, bad news is new cars are going to have about an additional 8% added on in 10 years of ownership.

/long ass rant

OpposResidentLexusGuy - USE20, XF20, XU30 and Press Cars > StudyStudyStudy 02/09/2018 at 16:39

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Screw them. That is awful.

fintail > StudyStudyStudy 02/09/2018 at 16:43

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Hey, those healthy pensions, platinum bennies, and well-connected bid awards won’t fund themselves.

This is how registration fees existed in the olden days - tied to MSRP. So you’d have a vintage Ferrari with lower rates than a new Geo.

Future next gen S2000 owner > StudyStudyStudy 02/09/2018 at 16:54

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That’s fucking terrible. I thought the way my county did registration was rough. They base it off original MSRP but it is a sliding scale based on model year and vehicle weight. Bottoming out with a minimum fee. First year was almost 600 on the Taco then 300 I think the following. This year will be about 150 I think. Should be below 100 next year. After ten years old, basically everyone pays one amount.

Mid Engine > StudyStudyStudy 02/09/2018 at 16:55

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A friend in Martha Lake has a Tesla Model S, tabs were $1200. We live 1/2 mile outside the RTA zone in unincorporated Bothell, my tabs were $76 for my Porsche. When it comes time to sell my house I’m certain I’ll get higher offers because we got lucky and avoided the RTA.

RamblinRover Luxury-Yacht > fintail 02/09/2018 at 17:15

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Registration fees in my state (NC) are based on theoretical vehicle value, but either the value database is hilariously out of date and not adjusted for inflation, or the cost bases are “I’dno, ‘mdrunk!” My Benz is allegedly a $2500 car. At the same time, my Galaxie is allegedly $800.

StudyStudyStudy > Mid Engine 02/09/2018 at 17:43

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That really is a benefit if you don’t need public access, that’s potentially thousands saved per year in a multi car household.

StudyStudyStudy > fintail 02/09/2018 at 17:44

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The odd thing is they include classic cars as part of the taxable bracket, but the thing they haven’t noticed or I guess they locked themselves out of is their scale. If it was vehicle value, classic owners would be more in the red. I don’t think I pay anything on my old datsun, but my stupid daily driver...

StudyStudyStudy > Future next gen S2000 owner 02/09/2018 at 17:47

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That seems fair, or fairer at least.

I get it, I got a new car, it has fees associated with it. I took it the first year hoping they would come to their senses this year, but damn. I’m thankful I didn’t go off and spend my tax return this year.

fintail > StudyStudyStudy 02/09/2018 at 18:03

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My old car has year of manufacture plates, I have avoided registration fees for over 20 years :) Back in the day when it didn’t have the plates, it was based on the car’s original MSRP, which was like 5K - my tags were under $40, I think.

But my DD is a modern MB with a high and unrealistic MSRP, so I felt the pain last June, and plan to do so again this June.

fintail > RamblinRover Luxury-Yacht 02/09/2018 at 18:04

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Hey, at least you are winning.

Here, we are paying for a transit network that should have been built 30 years ago, but the geniuses kicked the can down the road, and here we are.

Quadradeuce > StudyStudyStudy 02/09/2018 at 20:25

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$75/year flat rate for any auto here in Wisconsin. I think pickups are $90. The fees start adding up for all the specialty plates. I don’t think we have any rtas that add onto that, but I live in a sane corner of the state, not Milwaukee or Madison. They might have add ons.

StudyStudyStudy > fintail 02/11/2018 at 16:14

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Are you local? If so I assume this is sarcasm.

If not, then it is very interesting as we have the same problem here. The city had a choice between building a better transit system, and instead built a stadium. That stadium we were still paying off when it was demolished for a new stadium from what I understand. So we are actually finally building the can that was kicked down the road as well.

StudyStudyStudy > Quadradeuce 02/11/2018 at 16:15

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Interestingly enough, once you get over a certain weight, which a lot of the bigger pickups do, you no longer have to pay for the RTA tax here.

fintail > StudyStudyStudy 02/11/2018 at 16:44

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Yep, I am local, and I feel the pain.

From what I understand, the wonderful oh so accountable and certainly not void of self-awareness prior generations here were offered money from the Feds to built out transit, and passed. The money went to Atlanta, who now has (admittedly imperfect, but still quite useful) MARTA, and we have a couple of part time train lines, a World’s Fair relic Monorail, and lots and lots of buses. Don’t get me started on the stadiums.

My registration bill last year was over $500.

StudyStudyStudy > fintail 02/11/2018 at 17:13

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Ouch, preaching to the choir here then.

Mid Engine > StudyStudyStudy 02/11/2018 at 19:44

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Yeah, our sales tax is 7.7% too so it really does add up. Dodged a bullet.

Fact is the ST3 “service” won’t be anywhere near us for the next 22 years. What a joke.