Deductible Vehicle Taxes in Indiana?
According to the Indiana Code 6-6-5 (specifically, IC 6-6-5-3; see first web link below), the County Excise Tax is the part that is calculated based on the value of the vehicle. It would seem that this part is definitely deductible. The state registration appears to be a flat fee based on the vehicle type (passenger vehicles, for example, are $12/year). The wheel tax appears to be based solely on the type of vehicle. Both of these definitely don’t appear to qualify. The surtax is a bit iffy; IC 6-3.5-4-7.3 appears to state that the surtax is based on the calculations begun in section 6-6-5, which would make it based on the value of the vehicle. Bottom Line: based on the code referenced, the county tax is definitely deductible on your 1040. You might want to contact a local tax preparer to find out whether or not the surtax qualifies. Good luck, and I apologize for all of the jargon.
