Road tax
Encyclopedia
Road tax, known by various names around the world, is a tax
which has to be paid on a motor vehicle
before using it on a public road.
, short for registration).
was abolished for private vehicles in 2001 and was replaced by a tax on toll road operators at a rate of 6.85 uer per 1000 km travelled. In addition a tax is levied on vehicles registered to companies. Since 2006 the tax is levied according to CO2 emissions ranging from 2 euros per gramme to 19 euros per gramme.
and Nissan Tiida
. Both of these two cars only have 1500cc version available.
is payable as an annual duty (subject to exemptions) in Ireland
. Since July 2008, the tax rates for new private cars are based on the vehicle's carbon dioxide emissions.
starting with engines below 1000cc, and increasing at 500cc intervals to the maximum of 6000cc. Personal vehicles pay more than vehicles identified as business use. Kei car
s (Japanese vehicles with 660cc engines and reduced exterior dimensions) have significant tax merit because its tax is about quarter of 1000cc car.
, commonly known as "car tax", "vehicle tax" or "road tax", which is paid to the government for a vehicle licence
, which must be displayed on most motor vehicles used on public roads. Since 1937 there has been no direct relationship between the tax and government expenditure on public roads. The registered keeper of a vehicle that is not used or kept on public roads must complete a Statutory Off Road Notification (SORN).
For example, in Massachusetts
, the excise tax is billed separately from registration fees, by the town or city in which the vehicle is registered, and was set at a fixed rate of 2.5% statewide by a 1980 law called Proposition 2½. Within some states, the fees may vary from county to county, as some counties have surcharges per vehicle. An example of this is Virginia
's personal property tax. The state of New York, on the other hand, charges a tax based on the vehicle's weight, rather than on its value, which is charged at the time of registration renewal.
In California
, the registration tax is calculated by the current value of the vehicle. As a result, older and more inexpensive vehicles will have a low registration fee, whereas newer and more expensive vehicles will have fees in the hundreds of dollars.
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
which has to be paid on a motor vehicle
Motor vehicle
A motor vehicle or road vehicle is a self-propelled wheeled vehicle that does not operate on rails, such as trains or trolleys. The vehicle propulsion is provided by an engine or motor, usually by an internal combustion engine, or an electric motor, or some combination of the two, such as hybrid...
before using it on a public road.
Australia
In Australia an annual registration fee is payable, the cost of which varies by type of vehicle and state of registration. This is most commonly called rego ' onMouseout='HidePop("6744")' href="/topics/Soft_g">soft gSoft g
soft g can refer to:#The soft g sound in many languages, see hard and soft g.#A g with breve...
, short for registration).
Brazil
In Brazil, the states may collect an annual Vehicle Licensing Fee (Taxa de Licenciamento Veicular) which has a fixed value for each vehicle category determined by each state. In addition, each state may impose a Vehicle Property Tax (Imposto sobre a Propriedade de Veículos Automotores), with a rate up to 4%.France
In France, the vignetteVignette (road tax)
A road tax vignette is a form of tax on vehicles, used in several non-English speaking European countries. The term is of French origin, and is now used throughout Central Europe....
was abolished for private vehicles in 2001 and was replaced by a tax on toll road operators at a rate of 6.85 uer per 1000 km travelled. In addition a tax is levied on vehicles registered to companies. Since 2006 the tax is levied according to CO2 emissions ranging from 2 euros per gramme to 19 euros per gramme.
Germany
In Germany, the Motor Vehicle tax (Kraftfahrzeugsteuer) is an annual tax on all vehicles. It ranges from 5 eur per 100cc to 25 eur per 100cc for petrol engines and 13 eur to 37 eur for diesel engines.Hong Kong
In Hong Kong, the license fee is according to the category (passenger cars, goods vehicles, taxis, etc.) of the vehicle first. Then, for passenger cars (known as private cars), it is calculated by the engine size. The lowest tax band is under 1500cc, then the tax band changes at 2500cc, 3500cc and 4500cc. Due to this system of license fee, most of 1600cc to 1800cc car models cannot sell well. Most people prefer 1500cc for compact cars. Due to this reason, some manufacturers provide only the 1500cc version of their compact cars to Hong Kong market such as Toyota CorollaToyota Corolla
The Toyota Corolla is a line of subcompact and compact cars manufactured by the Japanese automaker Toyota, which has become very popular throughout the world since the nameplate was first introduced in 1966. In 1997, the Corolla became the best selling nameplate in the world, with over 35 million...
and Nissan Tiida
Nissan Tiida
The Nissan Tiida is a compact car, manufactured by Japanese automaker Nissan, replacing the Pulsar and the Sunny, and marketed also as the Nissan Versa, prominently in the United States...
. Both of these two cars only have 1500cc version available.
Hungary
In Hungary, since 2009 this tax is based on the vehicle's engine performance and the vehicle's age. Before this so-called performance tax, this tax was based on the vehicle's weight and unofficially it was called a weight tax.Ireland
Motor taxMotor Tax in the Republic of Ireland
Motor Tax is an annual duty payable on motor vehicles in the Republic of Ireland for use in public places. A new system for new private cars was introduced in 1 July 2008 where the tax rates are based on the carbon dioxide emissions of the car while in operation...
is payable as an annual duty (subject to exemptions) in Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
. Since July 2008, the tax rates for new private cars are based on the vehicle's carbon dioxide emissions.
Japan
A tax is collected under the Local Tax Act of 1950 that is paid every May based on the engine's displacement. The tax is determined by whether the vehicle is for business or personal use, then based on the engine's displacementEngine displacement
Engine displacement is the volume swept by all the pistons inside the cylinders of an internal combustion engine in a single movement from top dead centre to bottom dead centre . It is commonly specified in cubic centimeters , litres , or cubic inches...
starting with engines below 1000cc, and increasing at 500cc intervals to the maximum of 6000cc. Personal vehicles pay more than vehicles identified as business use. Kei car
Kei car
Kei cars, K-cars, or , are a Japanese category of small vehicles, including passenger cars, vans, and pickup trucks. They are designed to comply with Japanese government tax and insurance regulations, and in most rural areas are exempted from the requirement to certify that adequate parking is...
s (Japanese vehicles with 660cc engines and reduced exterior dimensions) have significant tax merit because its tax is about quarter of 1000cc car.
Mexico
The federal government charges an annual Vehicle Tax depending on the brand, value and other vehicle characteristics in models up to 10 years old at the time of payment. This tax was created in 1961 and in 2006 represented about 1.6% of the total tax income (around 13 billion pesos).Norway
In Norway, a registration fee is applied to all new motor vehicles when sold new. The fee is calculated by several variables such as vehicle classification, engine displacement, CO2 emissions, vehicle weight and engine power and generally rewards vehicles with smaller engines, low emissions and low weight. This fee can be in the hundreds of thousands kroner. In addition, there is a yearly road tax applied to motor vehicles, failure of payment will generally lead to road plates being withdrawn. The road tax varies by vehicle classification, for ordinary passenger cars it is 2840 Norwegian kroner (with a slightly higher amount for older diesels).Spain
In Spain two taxes apply to motor vehicles:- a) The Registration tax (impuesto de matriculacion) applies at purchase time to the purchase price. It is a national tax and the rate varies from 0% to 14.75% depending on C02 emissions. In some cases regions may fix their own rates.
- b) The Mechanical vehicle circulation tax (Impuesto sobre Vehículos de Tracción Mecánica or IVTM)is an annual tax. The tax is a municipal tax whose rate varies widely across the country. The tax is calculated according to the Tax horsepowerTax horsepowerThe tax horsepower or taxable horsepower was an early system by which taxation rates for automobiles were reckoned in some European countries, such as Britain, Belgium, Germany, France, and Italy; some US states like Illinois charged license plate purchase and renewal fees for passenger...
of the vehicle. In Madrid and Barcelona the rates for 2011 ranges from 22 euros for up to 8 HP to 224 euros for vehicles with over 20 HP.
United Kingdom
In the United Kingdom owners are required to pay Vehicle Excise DutyVehicle excise duty
Vehicle Excise Duty is a vehicle road use tax levied as an excise duty which must be paid for most types of vehicle which are to be used on the public roads in the United Kingdom...
, commonly known as "car tax", "vehicle tax" or "road tax", which is paid to the government for a vehicle licence
Vehicle licence
A valid vehicle licence is required by law in some countries to be displayed on any registered motor vehicle if it is to be used or kept on a public road.-Worldwide:...
, which must be displayed on most motor vehicles used on public roads. Since 1937 there has been no direct relationship between the tax and government expenditure on public roads. The registered keeper of a vehicle that is not used or kept on public roads must complete a Statutory Off Road Notification (SORN).
United States
Each state requires an annual registration fee which varies from state to state.For example, in Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
, the excise tax is billed separately from registration fees, by the town or city in which the vehicle is registered, and was set at a fixed rate of 2.5% statewide by a 1980 law called Proposition 2½. Within some states, the fees may vary from county to county, as some counties have surcharges per vehicle. An example of this is Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
's personal property tax. The state of New York, on the other hand, charges a tax based on the vehicle's weight, rather than on its value, which is charged at the time of registration renewal.
In California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, the registration tax is calculated by the current value of the vehicle. As a result, older and more inexpensive vehicles will have a low registration fee, whereas newer and more expensive vehicles will have fees in the hundreds of dollars.