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COSTA RICA |
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Vehicles Appreciate in Costa Rica?
Cars generally don't appreciate in value, at
best they will maintain the value that was
paid for originally. But, that is not the
case in Costa Rica when it comes to the
"fiscal value" that is used by the
Ministerio de Hacienda to calculate the
property tax on vehicles.
And although the Hacienda (Finance Ministery)
calculates the values, it is up to the INS - the Instituto Costarricense
de Seguros - the state owned insurer to
collect the tax in the annual marchamo or
vehicular circulation permit.
A case in point is that of a 1987
Mercedes Benz 300E (used here at Inside
Costa Rica), where the fiscal value
of the vehicle went from ¢2.300.000 in 2008
to ¢2.430.000 in 2009.
A close look at the two marchamos (2008 and
2009) there is no difference in the
insurance portion (INS was denied an
increase for 2009), nor for the other items
like the "aporte a Cosevi", "Timbre Fauna", and "IFAM"
that all collected each year by the INS.
Where the difference occurs is in the "Impuesto
a la Propriedad de Vehículos" (vehicle
property tax).
The tax in 2008 with that year's fiscal
value was ¢38.190, while the tax in 2009 was
¢42.090 or an increase of ¢3.900 colones on
an item that in reality is depreciating in
value with time and not appreciating as the
considered by the tax department.
And we are certain that the fiscal value for
2010 will increase as well, making the
vehicle even more valuable, if only on
paper. The amount of the 2010 property tax
will be available on November 21 when the
2010 marchamo goes on sale.
Of course, like any tax it can be appealed.
However, the process of reducing the fiscal
value of a vehicle is quite complicated and
time consuming and with no guarantee that it
will be accepted by the Hacienda.
Let us explain.
The first step in the process is to have the
vehicle appraised or valued by a car dealer.
The advice, in the case of a Mercedes is to
bring the vehicle to an authorized Mercedes
Benz dealer to ask for a "written" value of
the vehicle.
In Costa Rica there is only one Mercedes
Benz authorized dealer, Autostar which also
markets Jeep, Chrysler and Freightliner
trucks.
With the written value in hand, the next
step is to visit the ministerio de Hacienda
office located in Barrio Don Bosco, on the
third floor. This is where the "taxman" will
be presented with the request, who in turn
assigns a "perito" (inspector) to physically
inspect the vehicle, which in most cases
will be only by appointment or waiting
around until a perito is available.
Of course the filling out of forms and
presentation of all documents of ownership
and marchamos paid is a very important step.
And only when the Hacienda official is
satisfied that the fiscal value is not
realistic, good luck on that, will he or she
enter it into the system which would then go
into effect for the coming fiscal period.
For the 2010 fiscal period, the valuation
process has to be completed by November,
after that it would apply for the 2011
fiscal period.
For a retroactive application of a change of
fiscal value is another, and more
complicated process.
In the 2008 marchamo our 1987 Mercedes Benz
3003 had a fiscal value of ¢2.300.000
colones. However, in 2009, the fiscal value
increased to ¢2.430.000, even though the
vehicle is not one year older. On November
21, there will be no surprise if the fiscal
value of our vehicle increases again, which
means a higher payment of property tax. |
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