Ownership Tax is a personal property tax based on the taxable value of your vehicle. The taxable value of a vehicle was calculated as a percentage of the Manufacturers Suggested Retail Price (MSRP) when the vehicle was brand new. This value remains constant throughout the life of the vehicle. (See Example #2 below)
The percentage applied to your MSRP depends on the vehicle type. The Manufacturers Suggested Retail Price (MSRP) of a vehicle is not the same as the purchase price.
|
Vehicle Type
|
Taxable Value
|
|
Trucks and Trailers
|
MSRP x 75%
|
|
Passenger vehicles
|
MSRP x 85%
|
|
Motorcycles
|
MSRP x 85%
|
The ownership tax rate is based on the age of the vehicle from the date of manufacture. The ownership tax is calculated by multiplying the taxable value by the tax rate. (See Example #2 below)
|
Vehicle Age
|
Tax Rate
|
|
1st year
|
2.10%
|
|
2nd year
|
1.50%
|
|
3rd year
|
1.20%
|
|
4th year
|
0.90%
|
|
5th-9th year
|
0.45%
|
|
10th year and older
|
Flat fee of $3.00
|
EXAMPLE #2: Ownership tax in 2002 for a 4 year old 1998 passenger vehicle with an MSRP of $20,000.
Ownership Tax = Taxable Value x Tax Rate
= (MSRP x 85%) x Vehicle Age (4th year) Tax Rate (0.90%)
= ($20,000 x 85%) x 0.90%
= $153.00
License fees are those fees paid to license your vehicle within the State of Colorado. The combination of license fees and ownership tax is what you pay each year to register your vehicle. License fees are based upon the year, weight, taxable value and the date of purchase of the vehicle and, for most passenger vehicles, average between $40.00 and $60.00 per year.
I thought I paid all my fees and taxes at the dealership?
Depending upon where you purchased your vehicle, some or all of these taxes may be due at the time of registration.
Authorized licensed dealers will collect all or part of the 7.62% sales tax for Denver County and for the State. If the seller is not licensed and authorized to collect taxes, or is an individual seller, the purchaser must pay the sales tax directly to Denver Motor Vehicle at the time of registration.
License plate fees and ownership taxes (personal property taxes) will be collected when you register your vehicle with your local Denver Motor Vehicle office.
My vehicle was given to me as a gift, is any sales tax due?
MV-0003 Affidavit of Purchase Price, Trade or Gift should be completed to determine whether the vehicle is subject to the 3.62% Denver Sales Tax or is exempt from this tax. In order for this type of transaction to be tax exempt, the gift must come from an immediate family member and it must be given without consideration. Assumption of debt is consideration and would subject the vehicle to the Denver sales tax. Am immediate family member is defined as a spouse, child, parent, brother, sister, grandparent or grandchild.
If there is no relationship between the two parties, a total of 3.62% Denver sales tax is due and is based on the wholesale value of the vehicle in a current Kelly Blue Book.
Page revised January 24, 2012