Even though you own it you still have to pay rent (tax).
I guess we don't really "own" anything.
Two_Tools_In_a_Tent wrote: But if you don't drive it, don't have it registered or insured, just HAVE it, how on earth is the state aware of this and why would they charge you anything at all just for simply owning it? Do they come bust into your garage and bag you for having a car in there? Sneak around back and check under the tarp for an automobile or motorcycle? I'm mystified by this.
The biggest part of CA registration fees are the "Vehicle License Fee" or VLF. This "fee" is based on the value of the vehicle -- it was 2% for a long time, then got reduced to 0.66%, pushed back up to 2% (with much backlash, this was the final straw with Gray Davis and is what got him recalled and Schwarzenegger elected governor), and then pulled back down to 0.66%.
The CA VLF is tax deductible on your federal income taxes, because it's a property tax. At one point the IRS argued that it was not, but a court ruled that because it's a straight percentage, the word "fee" in the name is irrelevant.
(note that only the VLF is deductible, not any other fees with registration. Usually those are quite a bit less than the VLF, unless it's a really old vehicle because the assessed value is depreciated as the vehicle ages)
They charge you for owning it the same way that they charge you for owning anything else that's subject to annual property taxes, such as real estate.
Generally speaking, they don't actively enforce the VLF tax. When you buy a car new the VLF is included in the purchase price, and when registration is renewed they send you a bill for it. If you don't pay it, you don't get your sticker. If you ever want to get the car registered in CA again, you need to pay all of the back VLF taxes at that point. There are a few exception cases (Keith found one, it seems), but that's pretty much the way the enforcement works.
RevRico wrote:Ian F wrote: As mentioned it depends on the state. Like NJ, PA doesn't really care if you let current registration, insurance and inspection lapse as long as you don't drive it on the road. Especially insurance.Yes. PA has gotten on top of this one. They'll also suspend the registration for 90 days if the insurance drops so you can't even reregister it in a timely manner. Then there's the different townships and their rules regarding vehicles without plates or with expired plates. Apparently, there are some township employees whose main job is driving around looking for vehicles that don't move or have expired or no license plate. Then out comes the fine booklet and threats of impound of the vehicles. California is the only place ive seen nonop, but honestly I'd kind of like the option. It wouldn't affect me where I live, but it would help a lot of people I know.
PA doesn't require insurance or registration for non-operating cars, and there's no state taxes, other than sales tax, on cars. This year PA did away with renewal stickers, so now there's no way for a busy body to tell if a plate is current or not. Some localities do forbid the outside storage of unregistered cars- a law I support. I think the law is largely unenforced unless a complaint is filed. Registration and inspection-both safety and emissions-are independent of each other. A car can easily be registered (if insured) but not inspected. And the inspection stays with the car. Selling a car does not mean a new inspection.
Two_Tools_In_a_Tent wrote: Curious. You can't just let the registration and insurance end, park the car in the garage or cover it with a tarp in the driveway and ignore it and have it be on hold that way? Out of sight out of mind, just sitting there hidden away, nobody's business but my own? It has to be actually "registered" in one way or another in certain states? I've never run into this sort of thing before, thanks for the explanation.
Ohio doesn't have a non-op registration, and they don't care about back fees if you let your registration lapse, BUT in many municipalities it is illegal to have unregistered cars on your property. Usually this is something you get cited for only if you're building a private junkyard and your neighbors are sick of it, and even then, at least in Cleveland, you're given a reasonable period of time to either register or remove them.
In reply to ChasH:
Not for non operating cars, no. But I think needing to pay for plates twice for the same car is stupid, and would like the ability to keep the plate with the car and pay a reduced registration fee. In Hempfield township, they actively look for cars with out of date tags, last summer they got a few people I know. It was kind of funny, actually, they went through an entire trailer park passing out notices about expired registrations, basically a 2 week warning then came back and ticketed everyone who hadn't gotten rid of the car or renewed. But Hempfield is essentially a gigantic HOA with arbitrary rules about everything, regardless of if you're in a neighborhood or out in the sticks.
I just went outside and looked, because I keep hearing the no more stickers thing. I renewed the miata registration in May, I got a sticker for it. We bought the Elantra in June, but didn't get a sticker with the registration card. My next renewal is September for the Vic, I'm curious if I'm going to get one for it or not.
I hate inspection, but since I can split driving between cars, I'm at least emissions exempt every year. But I understand the point of the safety inspection, especially after living places without one, but I still don't like it.
RevRico wrote: In reply to ChasH: Not for non operating cars, no. But I think needing to pay for plates twice for the same car is stupid, and would like the ability to keep the plate with the car and pay a reduced registration fee. In Hempfield township, they actively look for cars with out of date tags, last summer they got a few people I know. It was kind of funny, actually, they went through an entire trailer park passing out notices about expired registrations, basically a 2 week warning then came back and ticketed everyone who hadn't gotten rid of the car or renewed. But Hempfield is essentially a gigantic HOA with arbitrary rules about everything, regardless of if you're in a neighborhood or out in the sticks. I just went outside and looked, because I keep hearing the no more stickers thing. I renewed the miata registration in May, I got a sticker for it. We bought the Elantra in June, but didn't get a sticker with the registration card. My next renewal is September for the Vic, I'm curious if I'm going to get one for it or not. I hate inspection, but since I can split driving between cars, I'm at least emissions exempt every year. But I understand the point of the safety inspection, especially after living places without one, but I still don't like it.
I don't understand the your "pay for plates twice" comment. I've never been charged twice and I like keeping my plate so the next owner of the car isn't running around on plates ascribed to me.
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