Why Can't I deduct my Motor Vehicle Taxes Anymore?

There is still an IRS deduction for automobile property taxes.  However, there are three rules that must be met to claim a deduction for motor vehicle property taxes.

1.  The valuation must be based upon a dollar value of the vehicle.

2.  The valuation must be performed on an annual basis.

3.  The tax is imposed on personal property.

The state of Utah changed the way it values motor vehicles, trailers, campers, etc.  They were changed from a vehicle value property tax to an "age based" fee.  That makes the fee non-deductible.  However, the fee is much less for new cars so that saves you money if you are driving a newer vehicle.  There is a 1.5% uniform tax fee based on the value of a vehicle but it has to be a boat over 31 feet long or a vehicle like a semi-truck.