Virginia - Personal Property Tax/Insurance

[cart99]

1. I know I will have to pay sales tax at the time of purchase, but are tractors subject to Virginia Personal Property Tax every year?

2. Assuming I spend approx. $20k for a tractor. Will I need to have a rider added to my homeowner's insurance to cover it? If so, approx. how much extra $$ would this cost annually?

 

[KirkMcD]

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2. Assuming I spend approx. $20k for a tractor. Will I need to have a rider added to my homeowner's insurance to cover it? If so, approx. how much extra $$ would this cost annually?
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That's up to your insurance company, but as long as you are using it only on your property, they are usually covered.

 

[Jim_Slagle]

When I spoke with my agent (State Farm) my tractor is covered by my homeowners policy as long as it is only used on my property and is not used commercially.

You should call your agent and ask. If you use it off your property or trailer it to another location even if it is yours you probably would need extra insurance.

I don't pay personal property tax, I think that is only on registered vehicles.

Jim in Virginia

 

[DHennet]

1.) Fon non-business use I would think not. For a better explanation check with the VA DMV

2.)My existing State Farm policy covers my tractor while on my property. I did not need an additional rider for coverage.

 

[RalphVa]

Didn't pay any personal property tax on the tractor.

Homeowners policy covers the tractor.

Ralph

 

[Todd_C]

I bought my tractor last fall and my homeowner's insurance only increased $40. I don't know what to tell you about personal property. It depends on where you live.

 

[Mosby]

Since you live in NOVA, just know that everything is taxed!! In all seriousness though, it depends which county you are in and if you set yourself up as a farm etc... The county I am in does tax them.

I have been a Property Claim Manager for quite a while in VA. I can answer the insurance question fairly well as all of the policies closely resemble each other as they have to meet the state guidelines and acceptance. If you look at your policy under the "Property We Do Not Cover Under Personal Property" section, it will state Motorized land vehicles.........unless used soley for the service of the residence premises......

That is a little paraphrased, but the exclusion is intended to not cover any motorized land vehicles ecept those that fit in to that category. So, if your tractor is used solely on your property and not taken any where else to do anything, there should be coverage as applicable to the terms and conditions of the policy. I'll give you a bummer example so that you'll have an idea when it wouldn't be covered. You go down the road to mow a friends field and the tractor catches on fire. The first question is where did it happen? Then the next question is why was it there? Then the bad news. It wasn't being used solely to service your resdence premises if it was down the road working.

And before anyone says , "well my agent said", I'll clarify again, I don't sell the policy but I do ensure that it is applied correctly.

 

[starexpress]

Homeowners will cover it . I don't pay any personal property tax.

 

[Phils]

That was a good post by Mosby... I'll add a little:

your homeowner's insurance WON'T cover the tractor for damage from collision or rollover, should you run into a tree or worse. It WILL be covered for the perils specified in your policy (fire, theft, etc.) subject to the conditions mentioned by Mosby.

Phil

 

[TORQUIN]

I'm no tax authority, but I have been told that the state would like to tax you on anything of value you own. This includes your tractor, computer, etc. Since they have no way to actually track anything but your vehicles and owned property, they don't really enforce the tax on other valuable property.
I can say that I won't be one to offer that I own a tractor or a computer to any tax authority. (I'm writing this on a typewriter and faxing it to the internet) /forums/images/graemlins/grin.gif

Chris