<p>Looking to buy a car for DS, and trying to see if it would be better to do so in Alabama or back home. What is the sales tax rate in Tuscaloosa? If he has an apartment in the Lofts, can he use that address to register and insure it? Any other issues I should know?</p>
<p>the sales tax rate for purchasing cars in the state of Alabama is very low. depending on the county iit s going to range between two percent and four percent.
I pay 3 percent this last summer</p>
<p>registration costs are also very low here</p>
<p>Wow - that is low. What are the annual inspections and annual owners renewal fees like?</p>
<p>There are no annual inspections.</p>
<p>And tag renewals are low as well. About $50.</p>
<p>We are wondering the same thing, but DD will be in the dorms. </p>
<p>It’s possible to buy a car in a different state than the one its registered in. Extra taxes may or may not be owed to the state of registration.</p>
<p>Do Alabama renewal fees also include the property taxes on cars? Alabama has very low property taxes either way.</p>
<p>Many insurance companies will let one insure vehicles at their home address even if the cars will primarily be somewhere else. States often waive emission/smog testing or vehicle inspection requirements for cars outside the state at the time of registration/renewal.</p>
<p>Before purchasing a vehicle, it’s important to research insurance costs. Sometimes purchasing an older, less common vehicle with a more basic trim package can result in lower insurance costs. I knew students who drove late model Mercedes and Volvo vehicles because they had very low maintenance and insurance costs.</p>
<p>One option more people seem to be doing is “restoring” cars and pickup trucks from the late 70s/early 80s and registering them as antique/collector vehicles. Provided they are only used for leisure purposes, there are often no registration fees and insurance is not required or is relatively inexpensive.</p>
<p>“knew students who drove late model Mercedes and Volvo vehicles because they had very low maintenance and insurance costs.”</p>
<p>seatide…I think you may have meant older model versions of those cars. Late models would have high insurance costs because new cars are expensive to replace. Older models of those cars can be very reliable and have lowish insurance. </p>
<p>There is property tax on cars?</p>
<p>^^^
I don’t think so. I don’t pay one here in Alabama. Maybe some other states do that? I didn’t pay one in Calif either, but the tags in Calif were PRICEY!!!</p>
<p>All we pay for cars in Alabama is annual registration for new tags. We have four cars. The total bill for ALL four cars is less than $300. </p>
<p>When we moved from Calif to Alabama, my car was up for registration renewal and the Calif bill was $800 to renew. Ripped that up, moved, and went to the Alabama DMV where I paid…TWENTY DOLLARS…lol</p>
<p>Yes, there is a property tax on the cars in Alabama. </p>
<p>"Alabama law outlines four classes of property for Ad Valorem tax purposes, three of which apply to motor vehicles. The yearly Ad Valorem, or Property Tax, is based on the values assigned by the State of Alabama Department of Revenue. </p>
<p>As specified by law (Code of Alabama 40-8-1), the assessed value of automobiles for tax purposes is either 15% or 20% of the market value. The three ad valorem classes which apply to vehicles are as follows:</p>
<p>Class IV Motor Vehicles (15%) � Includes all private passenger motor vehicles to include private passenger vehicles under lease-purchase option, vehicles registered in name of a trust or beneficiary, station wagons, sport utility vehicles,vans and �pickup� trucks with an option to purchase, which weigh eight thousand(8,000) pounds gross vehicle weigh (GVW) or less that are owned and operated by an individual for personal or private use and not for hire, rent, or compensation.</p>
<p>Class I Motor Vehicles (30%) � Includes all motor vehicles owned by public utilities and used in the business of such utilities.</p>
<p>Class II Motor Vehicles (20%) � Includes all motor vehicles that do not fall within the definition of either Class IV or Class I motor vehicles. This class includes motorcycles, utility trailers, recreational vehicles, leased vehicles not for private use and without lease-purchase option contractual agreements, trucks weighing more than eight thousand (8,000) pounds gross weigh, and all vehicles used for commercial purposes."</p>
<p><a href=“http://madisoncountyal.gov/about/org/CoDepts/LicenseDept/#PROPERTY”>http://madisoncountyal.gov/about/org/CoDepts/LicenseDept/#PROPERTY</a></p>
<p>?</p>
<p>When do you pay that? </p>
<p>We have never paid any separate annual tax on cars. </p>
<p>Edited to add…</p>
<p>“Class I Motor Vehicles (30%) � Includes all motor vehicles owned by public utilities and used in the business of such utilities.”</p>
<p>Aren’t those ^^^ regular cars? IF so, then the tax isn’t on families, it’s on “company owned cars”. </p>
<p>“Class IV Motor Vehicles (15%) Includes all private passenger motor vehicles to include private passenger vehicles under lease-purchase option, vehicles registered in name of a trust or beneficiary, station wagons, sport utility vehicles,vans and �pickup� trucks with an option to purchase, which weigh eight thousand(8,000) pounds gross vehicle weigh (GVW) or less that are owned and operated by an individual for personal or private use and not for hire, rent, or compensation.”</p>
<p>In AL you pay it every year when you renew your tags. If you look at your registration, there is an amount listed for Ad Valorem tax. It goes down each year since a car depreciates. It is actually the more expensive part of the tag renewal. The tag itself only costs $25.</p>
<p>So it’s billed as part of the registration renewal. What is the typical total fee for a car? I mean, what are some of you paying to register/renew your cars?</p>
<p>My 2009 Pilot cost me $177.95 the last time I renewed my tags. We payed a total around $450 for all three family cars…two are 2009s and one is a 2008. My car is the highest valued one.</p>
<p>^^
I would have to look up our last bill (which was for FOUR cars). But I think the total was under $300 for ALL FOUR cars. None of our cars are “new”. They’re mostly about 4-6 years old. one is more than 10 years old. </p>
<p>I never looked closely at the details since the total cost was so low. So, I never saw that there was some portion that was a “tax”. </p>
<p>As soon as my kid turns 19 he needs to look into changing all to AL. Y’all pay nothing compared to up here. And that no inspection is HUGE to me since they always find another $500 in things that need fixing before we can pass inspection.</p>
<p>And…now, in Tuscaloosa County, first time homebuyers can get 0 down USDA loans (yes…lol…USDA loans) for a home. </p>
<p>I so need to move. If I could convince my parents to move, my house would already be on the market. </p>