If you’re wondering how much road tax for a motorhome, you’ve come to the right place. Motorhomes are exempt from VED, but older models still pay road tax. The amount depends on the vehicle’s emissions and engine capacity. Additionally, a Discretionary Sales Surtax is due on the purchase of the motorhome. You’ll want to know the current rates for your motorhome before you buy it.
New motorhomes will pay a flat rate of PS265
Unlike cars, campervans and motorhomes will pay a flat rate for road tax. This rate is fixed until 12 March 2020 and rises to PS270 from 1 April. New motorhomes and campervans aren’t required to declare their CO2 emissions when they register. Therefore, they will pay a PS265 flat rate of road tax, even if they are registered after that date.
A good rule of thumb is to shop around for the best rates, as sales tax varies from state to state. If you purchase a motorhome for $100,000, you should expect to pay PS265 in road tax. This flat rate is lower than the standard rate charged to other motorhomes, but it’s still high enough to drive away with a big bill.
Older motorhomes are exempt from VED
A recent change in motorhome taxation is over. New motorhomes will no longer be subject to Vehicle Excise Duty (VED) from 12 March 2020. The government has now reversed this decision and motorhomes registered from that date will be taxed under the previous system. In addition, the new system will also align the tax treatment of vans and motorhomes, so that both will be exempt from VED.
The government plans to replace the VED with a new tax called the Lorry Road-User Charge, which is based on the distance travelled. The rate of fuel duty will also be cut. This change is still at proposal stage, so no start date has been set. It will apply to all HGVs – UK and foreign – and would end the practice of tax-free motorhomes.
Vehicle’s emissions and engine capacity are considered
A motorhome’s road tax rate depends on a number of factors, including age, size, and engine capacity. Since motorhomes are considered Light Commercial Vehicles (LCVs), the cost of road tax will increase as the vehicle ages. During its first year on the road, the cost of road tax on a new motorhome or campervan will be around PS2,135 per year, whereas its road tax rate will increase by 700% the following year.
Although new emission regulations are important for cars and vans, they are not applicable to motorhomes. Motorhomes do not have many options for engine size, which means that vehicle owners will be forced to settle for a lower-powered engine. However, the taxation system is set to be more progressive in the near future, so that motorhome owners will be able to get the best possible value for their money.
Discretionary sales surtax is due on the purchase of a motorhome
The first thing you need to know about the sales tax on motorhomes is that you’ll have to pay it. When you buy a motorhome, the government considers it tangible personal property. This means you’ll be required to pay sales tax on the total purchase price. There are a few ways you can minimize this tax. One option is to get an Itemized Invoice Affidavit, which allows you to claim a deduction on your tax bill for a trade-in motorhome.
In Florida, the sale of a motorhome is subject to six percent sales tax. Additionally, many counties have discretionary sales surtaxes on the first $5,000 of purchases. You can find a list of surtaxed counties by visiting the Department of Revenue’s website. If you’re purchasing a motorhome in Florida, you will need to pay the surtax on the first five thousand dollars.