Why is it that the value of your vehicle for excise tax purposes is based on MSRP, but when calculating the value of a vehicle for people on welfare, the state goes by "Kelley's low blue book" value, i.e. trade in value?

Allan

-- Allan (ae_me@yahoo.com), September 07, 1999

Answers

Allan, I think you have just asked the 'ONE BILLION DOLLAR QUESTION'

-- maddjak (maddjak@hotmail.com), September 07, 1999.

Remember when the taxes were reduced from 2.45% to 2.2% in 1990? This was the information the state presented to the public. The state said that we were getting a .25% reduction in taxes, for our tabs. However they did not mention the fact that they also changed the calculation of the tax at the same time. In 1990 they screwed the public, by using the MSRP for tab taxes, not the actual value of the vehicle. The state thinks that the general public pays MSRP for their vehicles. The only group that is paying MSRP is the state gov't.. Anyone that pays more than 3% - 4% over dealer invoice, is paying to much for the vehicle. Also, the new calculation is a depreciation of property value. A business has a better property depreciation tax break than the public paying for vehicle tabs. In most cases a business can't extend their depreciation past five years on most properties. But the state is depreciating our vehicles up to 15 years, still based on the MSRP. The sky is not "falling" as Chicken Little (Gov't)is saying. The state gov't does not want to recognize or admit that the people of Washington is fed up with their tax and spend policies.

"VOTE YES - FOR - I-695"

-- Jeffrey A. Bob (jbob@mail.arco.com), October 12, 1999.

Allan -

Since I am not nor ever been on welfare, it is simply amazing if what you say is true! Are you trying to say that when the government pays up on your welfare in order for you to get your tabs, do you normally have to make up the difference?

If that is true, I sure hope there are a lot of people out there on welfare that will be voting YES on I-695!

OK DB, Patrick, and the rest of you... explain your way out of this one.

-- Sandy D (sandy_d1@yahoo.com), October 12, 1999.

I have never been on welfare either. What I am saying is that the state puts a value on a car different ways depending on what they are talking about. They value your car on MSRP for excise tax purposes. However, for welfare eligability purposes, they calculate it on Kelley's low blue-book value (i.e. trade-in value). This is for the simple purpose of allowing the most people possible to receive welfare while staying under the $5000 vehicle cap. In other words, if their car value is about $5000, they do not qualify for welfare, so DSHS uses the lowest possible value for the vehicle.

FYI, there's many other programs who completely ignore the vehicle value. Low-income housing is one. I know of one person paying very little for their subsidized housing, and yet drives a 2000 Honda Civic EX... loaded to the hilt. In essence, we have given that person the ability to purchase the car because we pay their rent!

But, then again, as many users of the system, there are always ways around the law. If the person has a friend or parent that they can trust, they have that person put the car in their name, then give them the payments. Thus, we have many welfare recipients driving brand-new cars!! This is one that i have not been able to come up with a solution to. Any ideas?

-- Allan (ae_me@yahoo.com), October 12, 1999.