The Assessor Can Help—

Car Tax Bill Too High?

Check The Numbers

By Nancy K. Crevier

John Klopfenstein was very concerned when he looked at his automobile tax bill, did a few calculations, and realized that his car had been assessed at a value higher than what he had paid for the 2008 vehicle. He was even more concerned when he found out that a neighbor’s 2008 truck had also been assessed at a value higher than what had been paid for that vehicle originally.

He brought his bill of sale down to the tax assessor’s office at Edmond Town Hall and the bill was changed, said Mr Klopfenstein. He was left wondering where the tax assessor’s office had come up with the number on which his bill was based, because the clerk could not find his car model in the National Automobile Dealer’s Association (NADA) guidebook that is used statewide to value vehicles. “She thought it was ‘interesting,’ but really never did offer an explanation,” Mr Klopfenstein said.

His neighbor had a similar experience, and even though both Newtown residents easily had the tax bill lowered by showing the original bill of sale, Mr Klopfenstein is worried that other newer car owners may unwittingly be paying a higher tax than they ought to be. “It bothers me that I’m two for two on finding a problem. Is the number used for assessing vehicles come by arbitrarily and the tax office just sees if the higher number will stick?” he asked.

The number is not assigned randomly, Newtown Tax Assessor Chris Kelsey was quick to say in a recent interview. In a case such as Mr Klopfenstein’s, there are a couple of reasons his bill may have been problematic. Homemade motorcycles, trailers, and a few particular models of cars may not be listed in the NADA guide. “In those instances, we have a pricing schedule we use driven by weight and age for trailers, or we may use the Manufacturer’s Suggested Retail Price [MSRP] if there is no clean average retail price; or I may have to go to the car manufacturer’s Internet site and come up with a value,” Mr Kelsey explained.

This tax year was unusual because of the economy, said Mr Kelsey. “It is possible that buyers of later model cars, or even used cars, may have gotten a very good deal, with car dealers anxious to sell,” he said. “The purchase price may be less than what is in the NADA listing, because that was printed earlier in the year. That is the value that the town uses, so if a buyer has gotten a better price, the NADA number is going to be higher.”

To assess the value of a vehicle for the most recent tax bill, for instance, Mr Kelsey said, the town used the NADA guide for October 2008. Using an NADA computer program, a car is valued on the “clean retail price.” The assessment is 70 percent of that price, and the tax is the assessment times the mill rate of 23.43. “Antique cars are a little different. Any car 20 years old or older falls under the antique status, and that is a flat $500 assessment,” he said.

It is not uncommon for taxpayers to question their car tax bill, Mr Kelsey said. “Sometimes we get two or three inquiries a day. Sometimes the question is warranted, sometimes not.” If a taxpayer has proof that a car has been assessed at too high of a rate, as in Mr Klopfenstein’s case, it is easy to adjust the bill. “Call, and we will check the book, or stop into the office and bring the bill of sale. An adjustment will be made,” he said.

There is also a very simple explanation for an error in assessment, Mr Kelsey said. Because the office types in thousands of numbers, sometimes it is human error that sends out a bill that is higher than it should be and that is easily corrected, he said.

If a car owner believes that his or her vehicle is in such poor condition that it does not warrant being assessed at the clean retail price, it is possible to appeal the assessment. “Pay the bill on time, but appeal it. The Board of Assessment Appeals meets every September for motor vehicles.” If the board agrees that the vehicle should not be valued at the NADA clean retail price, an adjustment will be made on the next tax bill.

The other area that creates misunderstandings with car tax bills, said Mr Kelsey, is when a car is sold. If you get rid of a car and transfer the plates before September 30 of any year, the tax bill must still be paid in full for that car. A supplemental January bill will reflect the credit that is due to the seller. A complete explanation of adjustments of motor vehicle tax bills is included in a brochure that goes out with every mailing of taxes, Mr Kelsey said.

It may be prudent to question an assessment that appears high, he said, due to the odd economy and lower sales prices of cars over the past several months. “If you have any questions, we are happy to answer them and make adjustments if we need to,” Mr Kelsey said.

Current NADA pricing guides can be purchased at nadaguides.com/priceguides. It may be necessary to contact NADA for guides covering previous years.

The tax assessor’s office is open Monday through Friday, from 8 am to 4:30 pm, or call 270-4240.