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That depends on your state. Sales tax charged at the point of sale is deductible as sales tax, and is not “personal property tax”. Some states also charge a personal property tax that is based on the value of the car, and this may be charged every year that you own the car, not just when you buy it. It may be a tax that you pay to your county or it may be included in your registration fee. But a general registration fee, such as $50 for all passenger vehicles, is not a personal property tax. You will have to check with your state or county if you aren’t sure what you paid.
It would generally be shown on the document showing where you registered the vehicle to get the license plate for your state. The fee you had to pay for the license plate that is based on the value of your car is the car registration fee.
Only the following states charge a fee based on the vehicle value:
Alabama
Arizona
Arkansas
California
Colorado
Iowa
Indiana
Kentucky
Louisiana
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
South Carolina
Washington
Wyoming
To be deductible, an auto registration fee must be based on the value of your car and assessed annually. If the plate fee is not based on the value of the car and assessed annually, then it is not deductible.
Please read this TurboTax article for more information.
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