CA registration renewal is EXPENSIVE

[Jake Stone]

I have California DMV registration renewal sticker shock. The cost to renew my CA registration is $1,035 which the DMV explained is based on the value of the RIvian. Has any other CA owner had this experience? Has anyone challenged the fee? I'd appreciate any advice. Thanks.

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[srkz]

Lucky! Mine was $1,262 lol.

It's based on the price of the vehicle so there's nothing to challenge. There's also additional costs for it being an EV to offset the State's loss of gas tax revenues, and for it being a "commercial vehicle" if you have the R1T .

 

[DetroitRed]

Has any other CA owner had this experience? Has anyone challenged the fee? I'd appreciate any advice. Thanks.

That's how it works in CA. You probably paid about that much last year if you bought the truck new in CA, but didn't pay attention if it was rolled into your financing. They gradually depreciate the truck so the cost will go down slightly each year. I'm in MI now and they do the same thing, but my renewal is "only" $516 this year.

I'm not sure how you would attempt to challenge that The law is the law.

 

[djsider2]

I have California DMV registration renewal sticker shock. The cost to renew my CA registration is $1,035 which the DMV explained is based on the value of the RIvian. Has any other CA owner had this experience? Has anyone challenged the fee? I'd appreciate any advice. Thanks.

What was the value of your Rivian? I'm already prepping myself for this.

 

[Kenmecca]

I paid $993 for my 2nd year (first one after purchase)

 

[Jake Stone]

What was the value of your Rivian? I'm already prepping myself for this.

All in it was $100k+

 

[sfvR1S]

Aside from a $175 EV fee (not 100% sure about the amount), it's based on the price of the vehicle so not really a Rivian issue. I'm sure if you try to register a late model GT3 RS, it'd be 2.5-3x the amount.

 

[Jake Stone]

Thanks all. it reduces the pain point somewhat to know we all share the problem.

 

[DeafPug]

At least you’re able to deduct the property tax portion of your tags from your Federal taxes. Unfortunately, for this year and next year, your SALT (State And Local Tax) tax deduction is limited to $10k, so you’ve likely exceeded that already and not able to itemize on your taxes to claim the deduction.

Vehicle tags are similar in Kansas. 2024 property tax on a 2023 R1T for my county is $1383. All in, close to $1550 for the 2024 tags. At least the property tax on vehicles has an accelerated depreciation on it.

 

[Mathme]

$1300 here for that little commercial truck plate.

 

[Jake Stone]

At least you’re able to deduct the property tax portion of your tags from your Federal taxes. Unfortunately, for this year and next year, your SALT (State And Local Tax) tax deduction is limited to $10k, so you’ve likely exceeded that already and not able to itemize on your taxes to claim the deduction.

Vehicle tags are similar in Kansas. 2024 property tax on a 2023 R1T for my county is $1383. All in, close to $1550 for the 2024 tags. At least the property tax on vehicles has an accelerated depreciation on it.

Thanks so much for the advice. very helpful.

 

[CharonPDX]

Yep, some states do it based on vehicle value, so it hits all speedy vehicles.

Some states have an "EV tax" on registration/renewal, in theory to offset the fact that they don't pay gas taxes. In my state, it's based on the MPG of the vehicle - lower MPG pay lower registration/renewal fee, since they in theory pay more in gas tax; higher-MPG (and alternative-fuel) pay higher. You can also choose to pay the lowest fee but also pay a per-mile-driven charge; and for hybrid/plug-in-hybrid, you can even submit receipts for gasoline purchases to offset the per-mile charge $1-for-$1 with the tax portion of the gas price.

It's only worth it if you drive very few miles, though.

 

[SANZC02]

CA uses an 11 year depreciation schedule for the value of the vehicle. That portion is a value tax and can be deducted on your taxes. Here is a good explanation of how it is calculated. By the way states that handle registration like this is why discounts work better than interest rate buy downs or credits as they lower the purchase price.

 

[shamoo]

Why do you think so many exotic car owners register in Montana.

My other vehicle is far from exotic, but initial registration when I got it was like $2200 or so. It is a few years old now but still in the $1500 range.

 

[mabowden]

All in it was $100k+

Dumb how it seems to be completely random. Mine was $82k with pre march pricing and my reg. was ~$1200

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