Alabama Tag Fees, Taxes

[Barnero]

Today I wrote both of my state representatives and the governor about what I feel are unreasonable tag taxes and fees in Alabama. I would encourage anybody who buys tags in Alabama to do the same. Not sure how they compare with other states, but they are unreasonable, in my opinion. Below is what I sent to the state fathers:

Hon. XXXX

I would like to bring to your attention the unreasonable tag fees and taxes paid for motorhomes in Alabama. No need to be long winded, but get right to the point. I believe it is very unfair to charge a different issuance fee for ANY vehicle, to start with. I just bought an old motorhome and my issuance fee for the tag was $275. Why would that be different for different vehicles, especially in this case? In addition, my taxes were almost $600. I fail to understand why we are taxed the same as a commercial vehicle that is for-profit and driven most of its miles in-state. Motorhomes are usually driven most of their miles out-of-state, and travelers often park for extended periods, unless they are full-timers. This seems like a tax that is a "share the wealth" tax -- unreasonably placed on prive citizens of Alabama as if they were a business. Is there something we can do about this injustice?

Thanks for your time,

[genenick]

$275 is a chunk of change. Is that for one year? Here in Louisiana I pay $25.00 a year (issued for 2 years at a time totaling $50.00) for my rig. I use USAF Veterans Plates which I understand gives the two year option. Normally I belive they are renewed annually for $25 as a private bus. If you are a 50% for greater disabled vet you can get the tags for free. I have handicapped tags on my car and pickup truck and those are renewed for $10 every 2 years. The normal published rate is $1 ofr each $1000 of the purchase price with a minimum of $10 renewable up to 4 years for each renewal. If you bought a car/truck for $28,000 then your rate would be $28.00 a year. Before 2000 it used to be a flat rate of $3 year for cars and $10 a year for trucks.

[pianodan]

Here in MN, the veteran's tags and handicapped (all known as special plates) generate an extra $10 for the initial issuance of the tags, then normal renewal fees following that, based on value and weight ( weight jumps in over 9600 GVWR). For example, my two old Chevies ('95 Suburban K1500 and '94 X-cab LWB 2500 HD) are $42.50/yr now, up from $38.50 last year, and my '91 motorhome 18k GVWR is $125/yr (up from $115 last year). I think we need to move to La. At least I don't live in CA any more, where it would be much more expensive and we would have to pay for smog inspections every 2 years as well.

[kingfr]

I believe that the issuance fee in Alabama is actually somewhat less for a motorhome than a commercial vehicle of the same GVW. My tag's issuance fee was $$1.25. The license fee for this year for a MH of 33K GVW is $275. By the time they got through adding ad valorum taxes, the tag was $1262.49. Alabama taxes motor homes as second homes, which means that the tax is based on 20% of the assessed value. A primary residence is taxed at 10% of the assessed value, less a homestead exemption. However, when you buy the motor home in Alabama, the sales tax is 2%, plus whatever your county charges. This is much less that most states, Montana being an exception. When I bought my coach, I paid 2.5% sales tax on it. Since I am a full-timer, I think that my motor home should be taxed at the primary residence rate, but I probably won't win that battle. I see a move to Texas or South Dakota in my future!

[amarschinke@yahoo.com]

Our tag this year was unbelieveable ... almost caused me coronary arrest!! We need to do something about it but I am not sure what and how to go about it ... If you hear back and they give you a process to follow, let me know. I will help out or do whatever they suggest!!

[Barnero]

Just wanted to update.

I got a response from Alabama State Senator Paul Sanford today. He said he had reviewed the fee data from the Alabama Revenue Dept and he agreed the rates were too high. I left him a copy of my Tag & Tax Receipt per his request and he is going to work for some change. I ask all Alabama residents to write or email your legislators to support this effort.

I reviewed the Tennessee fees and their tag totals ran from $25 to a little less than $102 a year. I got a response from Legislator Howard Sanserford earlier after much delay and sarcasm, which he basically said there was no point in trying to change things like that in fought budget times. I guess that is probably a typical response from a politician, especially these days.

Senator Sanford was very graceful with his response and said basically he was there to serve. What a refreshing attitude for a public office holder these days. My hat's off to him!!!!

[hermanmullins]

14 days short of two years. Good news or bad news, who could have asked for a quicked response. WOW

[johnklopp]

I have a 2005 Dodge ram pickup in California and the tags were $625 this year. My coach is registerd in Texas and they have no problem with an Escapees address allowing me to register the coach for a little over $200

[Barnero]

Herman,

Part was my fault. When Sanderford gave me his response I was frustrated and didn't do any more till last fall when I wrote Sanford. He is not even the senator for my area, but was the one to commit to help. What are the tag & tax rates for Texas?

[hermanmullins]

Texas Taxes: 2002 40'M/H $235.00

2000 Caddy 41.00

2005 Mariner 64.00

[jpcoleman2]

I won’t even begin to scare you with Mississippi tag price. It is based on MSRP of the Motorhome.  I have been told by my county tax collector that a new class A diesel could run as high as 7500 bucks a year. I still can not believe that is correct. 

[hermanmullins]

 This topic was started 8 year ago and the last posting was 6 years ago. Suggest starting a new topic for more up to date information. 

Herman 

[kaypsmith]

Herman I know this topic is eight years old, but I am still going to respond as to how Alabama arrives at what to charge for a tag on all vehicles except for commercial, that's any vehicle that's owned by a company or any for hire vehicle. First of all, there is sales tax on a vehicle every time it changes hands, state portion of that is 2.75%, then county and city, as much as 1.5% for a total of up to 4.25% depending on the location that the vehicle is tagged in, not where it is bought. Some states like Florida can collect up to 10%. Now for the tag portion, on an RV, the tag is classed, class 1 tag portion is $27.50. class 2, $50.00, class 3 $100.00, class 4 $175.00, class 5 $275.00. Now this is only the beginning, you are now required to pay personal property tax, called ad valorem tax by the authorities, the appraised value is determined by whatever NADA black book lists as retail value of that year and model of a vehicle, or Kelly Blue Book if not found in NADA. The assessed value is then 20% of that value, $100,000.00 would then be $20,000.00. Now the taxing authority collects depending again on location from $15.00 to $30.00 per thousand for each years tag, ie a $100,000 class 4 coach tag could be $175.00 + $600.00= $775.00 in the year that it is worth $100,000.00. A$500,000.00 class 5 would be $275.00 + $3000.00 = $3275.00. Now the good part is after 10 years the value will have declined to minimum value regardless of what NADA or Kelly says to $1000.00, I guess this is why you will only see coaches that are over 10 years old from Alabama, LOL. The parks that don't allow RV's over ten years are probably inclined to turn us away if they see an Alabama tag. Oh well! And the letters to our congressmen absolutely do no good, but this is governors year to be elected, soooooooooo, why don't we start sending letters to those candidates! Thanks for letting me vent, and as Herman said maybe time to start a new thread.

[manholt]

Kay.  Texas is not as bad as AL., but close.  We pay by weight over 26,000.  My best friend has a 5'er combination horse trailer, that cost over a million and comes in at 23,750 pounds, tags=$63 a year....I come in at 47,600, tags = $773.  Herman and I have a friend in Lone Star, that has a 47 foot custom Newell.  He pay's over $1,600 a year.

[jleamont]

WOW for once PA isn't so bad. $180.00 per year based off of the GVWR, ours is 36,000 lbs. PA doesn't care about GCWR on a Motorhome. Cars are $45.00 a year each or around that anyway. 

[obedb]

I know that it is an old topic but let me join in/ our 40' Phaeton tag cost in PA April of this year was $126.00.

Kay/ I remember my career military dad using Alabama for the annual tag on our car. If memory serves it was absolute chump change. Also remember him referring to Alabama as a non title state, whatever that means. That goes back into the 60's and earlier. His permanent home of records was Missouri. So what happened to Alabama? 

[kaypsmith]

75 it became a title state, so if your vehicle is 74 or older, no title is necessary. They only penalize you if your vehicle is newer, as stated, if over 10 years, the vehicle is minimum value, $500.00 for a car, motorhome  is $1000.00. Car tag over 10 years, is about $45.00 per year, MH over 10, $131.00 for class 3, class 4, $225.00, class 5, $335.00. But to answer your question, 1975 was the magic date, and has been uphill ever since. If I ever buy a new motorhome, I'm moving to Florida, LOL. theirs is similar price as your state.

[manholt]

So, what happened?  One word.  Greed. went up about the same time, we got the Lottery, Silicon Valley No.2 (Thank you Ann Richard).  Most of the State Oil & Gas, belong to Texas A&M and UT...so, the General Fund have to get $$$ somewhere! 🙄😂

[jetyner]

I just got the tax bill for my 2018 Tiffin Allegro RED. ONE year in South Carolina was just short of $8900. YES, that's 8 THOUSAND 9 HUNDRED dollars for ONE year. I am registering the MH in SD as we speak.

 

[manholt]

Is that an annual license fee or is it the State Tax on the Sales Price?  

[richard5933]

That is a lot of money, for sure.

What I've seen is that states with lower income, real estate, and/or sales tax have to get the money to run the show from somewhere. Personal property tax seems to be where your state is getting a chunk of their operating budget from.

Not that it will make you feel any better, but South Carolina ranked 40th in tax burden this year at only 7.55% overall. Compare that to where I live in Wisconsin, which ranks 16th at 9.15% overall. (Source: https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494/)

I only pay about $120/year for my coach's registration, but I pay more in other areas than you do. My feeling is that it all works out in the end, as there is no free lunch.

Seems like states are starting to crack down on people registering vehicles out of state, as that lost revenue has to be made up somewhere else. Be careful when you do this - if your state is one that is coordinating with other states you might get an unwelcome letter in the mail from your revenue people.

[wildebill308]

1 hour ago, jetyner said:

ONE year in South Carolina was just short of $8900.

Now you are going to make me feel bad about grumbling about the $353.47 I have to pay the state of Texas and the $7.00 state inspection fee. Also no state income tax.

By the way welcome to the forum and congrats on the new Red. 

Bill

[manholt]

I'm at $783 + $7, don't feel bad anymore!