Vehicle Property Taxes
A vehicle property tax is a type of personal property tax that some state and local governments require car owners to pay. Vehicle property taxes are typically charged annually in January, but details vary.
The mechanics of vehicle property taxes can be complicated, and vary widely depending on jurisdiction. As vehicle property taxes do not exist in every state, it’s important to be aware of your local tax law to understand whether this type of tax applies to you.
FAVR includes vehicle property taxes in reimbursement calculations. FAVR reimbursements are geographically sensitive, and aim to accurately reimburse drivers for the cost of driving in their location. In states, counties, and municipalities that charge PPT on vehicles, these taxes are included in the fixed component of drivers’ fixed and variable reimbursements.
Find out more ways how geography impacts FAVR, including the other factors — beyond vehicle property taxes — which can be impactful. Finally, consider the benefits of outsourcing to a vehicle reimbursement software like Cardata that’s designed for administering the complexities that come with FAVR programs. To speak with an expert at Cardata, click here.