Buying a car? Vehicle taxes vary greatly by county; plus other things you should know

A row of cars sits on display at a local dealership, Tuesday, Dec. 22, 2015.

? With the new year approaching, and spring graduations not far behind, now may be a time many people start thinking about buying a new car, if not for themselves, then maybe as a gift for that young adult in the family who’s about to step out on his or her own.

Although it may not be the most important issue, one thing to think about when choosing a new vehicle is what kind of tax bill you, or the person you’re giving it to, will be saddled with in the months or years to come. And that, it turns out, depends greatly on where you live — or, more precisely, where the car will be parked.

In Kansas, putting license tags on a vehicle can be more expensive than in many other states because the state charges a number of different kinds of taxes and fees. So when picking out a car or truck, whether it’s new or used, it’s helpful to know what other costs you’ll incur besides the sticker price of the vehicle itself.

Here’s a quick look at some of those costs and some tools to help you estimate what your costs will be.

Sales tax: This is a one-time tax that you pay when you go to get tags for the first time. In the case of vehicles, it’s more accurately described as a “use tax,” because the amount you pay depends on where the vehicle is used — that is, where the owner of the vehicle resides.

If you’re buying the vehicle from a dealership, the dealer may add onto the sticker price the cost of such things as extended warranties, vehicle accessories, preparation charges, charges for repairs and administrative fees to recover dealer expenses.

Trade-in allowances are now deducted from the selling price of the vehicle, so if you’re trading in an old clunker for a newer vehicle, that can reduce the amount of sales tax you owe.

Also not included in the taxable price of your new vehicle are any finance and interest charges, title and registration fees, or any other taxes or insurance costs.

The state of Kansas charges 6.5 percent in sales and use taxes. Additional taxes can apply depending on the city or county where the owner lives.

In Lawrence, Douglas County adds another 1 percent tax, and the city of Lawrence adds yet another 1.55 percent. Added together, that’s a total of 9.05 percent for Lawrence residents, or $905 in sales tax on a $10,000 vehicle.

Many other states do not charge sales taxes on vehicles. But even if you travel there to buy one, it won’t save you any money if you intend to tag the vehicle in Kansas, because Kansas applies the sales tax based on where the owner lives, not where the vehicle is purchased.

Personal property tax: This is a recurring tax that owners pay each year when they renew their license tags. Much like the property tax you pay on a home or any piece of real estate, the personal property tax is based on the value of the vehicle — which may be different from the price you paid — multiplied by the average property tax mill levy in the county where you live.

Kansas statutes outline a formula for determining the value of a vehicle, which is basically the median sale price of all vehicles in a particular class, minus a 15 percent per year depreciation allowance. The minimum property tax, for cars 15 years old or older, is $12.

The Kansas Department of Revenue has an online tool where you can look up the taxable value of a vehicle, based on its make, model and year, and estimate how much property tax you will owe, based on the county in which you live.

Douglas County residents pay less in personal property tax on vehicles than residents of most other nearby counties because it has a relatively low property tax mill levy.

For one model of a 2014 Chevy Malibu four-door sedan, for instance, the Department of Revenue’s online tool shows that in Douglas County, the property tax would be $381.74 for a full year of registration. In Shawnee County, though, the taxes on that same car would be $481.24, and in Wyandotte County the taxes would be $577.56.

But in Johnson County, where the mill levy is even lower than it is in Douglas County, taxes on that vehicle would be only $363.58.

In Kansas, the mill levy that applies to your vehicle is not exactly the same as the mill levy on your home. Since about the mid-1990s, Kansas stopped including the statewide 20-mill levy for public schools in the vehicle tax calculation.

That saved Kansans a considerable amount on their vehicle taxes. But it also means that schools get a much smaller share of the property taxes paid on motor vehicles.

Roger Hamm, deputy director of the Property Valuation Division of the Kansas Department of Revenue, said that in fiscal year 2014 that tax provision, enacted during Republican Gov. Bill Graves’ administration, cost Kansas public schools nearly $64.7 million.

Tags, title and registration

In addition to sales and property taxes, Kansas charges a few other nominal fees for vehicles:

Registration fee: $35 for passenger vehicles that weigh less than 4,500 pounds; $45 for heavier vehicles; $25 for motorcycles and $20 for mopeds or motorized bicycles.

• Personalized tags: The registration fee covers the cost of standard plates. But if you want a personalized, or “vanity” plate, the state charges another $46.50 for an auto or truck, or $45.50 for a motorcycle. Plates must be ordered and purchased at least four months before the vehicle’s registration renewal is due.

The plates are issued on five-year cycles, but there is no fee for renewing the personalization for another five years.

• Specialty plates: The state has authorized a limited number of specialty plates that promote certain causes, associations, groups or clubs. Prices for each one vary, and a portion of the fee goes to support those organizations.