Property taxes are collected in advance.

Example 1: Renewal

Bob Smith renews his tag in September, 2009. He will now pay taxes in advance from October, 2009 through September, 2010.

Example 2: Purchasing a new car

Private individuals buying a new car or pick-up truck (under 8,000 lbs GVW) for personal use will have their taxes deferred until their next registration or renewal month. When you purchase a new vehicle, you don’t pay your taxes until your renewal month. You then pay taxes due from the date of purchase as well as taxes for the following year.

Mary Jones purchases a new vehicle in September, 2009. If Mary traded in a vehicle, she will take the tag off the traded-in vehicle and go to the nearest License Commissioner’s office to register the new vehicle in her name. She will pay the transfer fee, but she will not be required to pay property tax at that time. She may qualify for a Receipt for Credit for prepaid taxes on the traded-in vehicle. When Mary renews her tag in August, 2010, she will pay property tax from September, 2009 through August, 2011.

Example 3: Purchasing a used vehicle

For an individual purchasing a used vehicle, it is important to obtain the most current tag receipt for that used vehicle and bring it with you when you register the vehicle. Otherwise, you will be responsible for paying any unpaid taxes by the previous owner. If back taxes are due, they must also be paid at the time of registration. Used vehicles must be addressed on a case by case basis. Property taxes are based on the make, model and age of the vehicle. Property taxes must be collected in advance.

Example 4: Exception

Mr. Anderson acquires a vehicle on January 5, 2009 (during his renewal month). Registration fees and taxes would be collected for the period January 1, 2009 through January 31, 2010.