Thompson Sales: Understanding Personal Property Taxes on a New Vehicle

Property taxes are usually thought about in terms of buying a new house or piece of property, but many don’t realize that there are also personal property taxes for purchasing a new vehicle. At Thompson Sales, we want our customers to be in the know about everything that buying a new car entails. Here, we explain a little bit about personal property tax and how it can affect you. 

What is a personal property tax assessment for my vehicle? 

Property taxes are paid on items such as a boat or car bought through Thompson Sales and are assessed based on the value of the piece of property. Depending on your state, these taxes could be considered county taxes or fall within the state tax guidelines. Every state distinguishes personal property tax differently. 

A brand-new vehicle from Thompson Sales will have a higher tax assessment because of the initial purchase price, whereas a used vehicle will have a lower tax assessment. A government official known as a tax assessor will regulate what you will pay after they determine the true value of your vehicle. Like a vehicle dealer who bases this information on blue book pricing, a tax assessor uses both the Kelly Blue Book evaluation and the NADA Recreational Appraisal Guide to rank your vehicle’s value. 

What are property tax exemptions for my vehicle?

Just as there are exemptions when you are filing your yearly taxes with the IRS, there are some exemptions for personal property taxes as well. There are disability, senior citizen, and homestead tax exemptions, which must be factored into the final sum of what you will owe. This exemption is tacked onto the original assessment value, lowering it and reducing the amount that you will need to pay. Again, this information is taken into consideration when the assessor is making his or her calculations. 

So, if your current personal property is exempt from $5,000 and has an original assessment of $25,000, your taxable property amount is $20,000. A percentage of this amount must be paid based on your area and state tax laws. In Missouri, the state’s average property tax rate is only .99%, a low rate when compared to the national average of 1.19%.

How do I pay personal property tax in Missouri?

Thompson Sales recommends working directly with the state government to get your personal property taxes resolved early. In Missouri, you can pay personal property taxes online through the Missouri Department of Revenue website. The website also includes information on how to file electronically and ways to pay. 

Where can I purchase a new or used vehicle in Springfield, Missouri?

Looking to buy a new or used vehicle? At Thompson Sales, our sales experts are always happy to hear from new or returning customers. Contact us at (417) 763-6811 today to see what’s available and how we can get you behind the wheel of a great new car.