ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, May 2, 1996 TAG: 9605020058
SECTION: VIRGINIA PAGE: A-1 EDITION: METRO
SOURCE: KATHY LU STAFF WRITER NOTE: Above
THE VALUE OF YOUR USED CAR actually went up this year? Say it isn't so, cry Roanoke's personal property taxpayers.
How could your 1989 Plymouth Horizon be worth more this year than it was 12 months ago?
That's a question some Roanokers may be asking after getting their personal property tax bills.
Though it may seem hard to believe, Roanoke Commissioner of Revenue Marsha Compton Fielder says certain used car values are increasing rather than falling. That means the owner of a car that's a year older could wind up paying a higher tax for it this year than last, even though the tax rate remains $3.45 per $100 of assessed value.
``[The assessment] of my [1992 Honda Civic] went up about $45 this year," says Raleigh Court resident Charliece Daniel.
This year, she will pay $1.55 more in personal property taxes than last year. "It actually had been slightly decreasing in value every year," she says. "You would think that after four years, the number would go down."
Northeast resident Rosie Robertson is in the same boat. Her 1988 Ford Ranger pickup is valued at $2,025 this year, about $500 more than last year.
"I really don't understand what they're doing," Robertson says. "It's just a cheap Ford truck. It's got no air and over 135,000 miles on it. We've been trying to sell it, but we won't get no $2,000 for it.''
Overall, the city expects to collect nearly $1.5 million more in personal property taxes in fiscal 1997, which begins July 1. In addition to cars, the annual tax is levied on trucks, boats, trailers and motorcycles. Companies also pay the tax on their machinery and tools.--deleted because it implies increase may be due to the higher assessments, whch may not be the case
When it comes to assessing values on cars, Fielder says, her hands are tied. State law requires her to use an industry guide in assessing a car's value, although the law does grant a little leeway as to which guide is used.
Roanoke uses the National Market Reports' Red Book, rather than the National Automobile Dealers' Association Guide, or "Blue Book," which many surrounding localities use. This year, the Red Book shows that some car values are climbing instead of falling; hence the higher assessments.
For example:
One 1990 Subaru Legacy Wagon LS assessed last year at $5,670 is worth $6,410 this year - an increase of $740, even though the car is a year older and probably has more miles on it. That means the owner will pay $25.53 more in taxes this year.
A 1992 Chevrolet Fleetside pickup is valued at $7,020, $135 more than in 1995.
And a 1988 Honda Accord DX valued at $3,825 last year is assessed at $4,250 this year, a jump in value of $425.
Fielder says she uses the lowest of three different values the car guide lists for vehicle manufactured after 1989.
Motorists outside the city aren't necessarily in any better shape.
In the Blue Book, which is used by Roanoke County and Salem, the Accord's value fell $100 to $4,050 this year. While the Chevrolet truck's value also fell, the Blue Book pegs it at $7,775, which is $755 higher than the Red Book.
One trend apparent from the Blue Book is increasing values of late-model, used General Motors cars, says Roanoke County Commissioner of Revenue Wayne Compton.
Dennis Harkins, the southeast regional manager for the Red Book, attributes increased assessments of certain vehicles to supply and demand. There is a shortage of used four-wheel-drive vehicles and imports, for example.
"Four-wheel-drive vehicles are in great demand after the winter we just experienced," he says. "I've talked to dealers who are all out of four-wheel-drives and don't have anyone [trading in used ones]. Honda Civics and Toyota Camrys are also probably the two most popular imports with high school and college graduates looking for something affordable."
Even owners of older cars may not have seen drops in their assessments. Fielder says that's because some of the cars were undervalued when she took office in 1994. She froze the assessments rather than assess them at higher Red Book values.
Owners of those cars will see their tax bills drop only after the Red Book's listed value drops below their current frozen assessment.
Billy Bova, a Grandin Court resident, says this is the first time he has experienced an increase in his personal property tax on a used car. His 1989 Plymouth Horizon went up $25 in value this year.
"Why would a car like mine go up in value?'' he asks. "It's not a sport-utility vehicle, it's not a hot car, and I don't think they even make it anymore."
Neither Bova nor Daniel blames Fielder for the increased taxes.
"The commissioner of revenue is just doing her job and enforcing the rules," Daniel says. "I just think that as long as the city keeps collecting more in taxes, then we should see the money being used for a better snow removal job or maintenance of the roads and sidewalks."
Nevertheless, any increase in tax payments can be a hard pill to swallow.
"With the gasoline prices and the personal property taxes going up this year," Bova says, "I feel like I'm getting a double whammy."
LENGTH: Medium: 100 lines ILLUSTRATION: PHOTO: PAUL L. NEWBY II/Staff. Charliece Daniel is amazed toby CNBfind that the assessed value of her 1992 Honda Civic had increased
$45 this year, causing her taxes to rise. She isn't alone. color.