# A simple outline of how Mexico registers and taxes its vehicles?



## robbiethinking (Nov 23, 2017)

I've spent more than a week's worth of spare time googling this, and looking through forums, but I'm still puzzled. Like so many things, often information is presented with the assumption that anyone reading it is also aware of all sorts of background things . . . 

One of my problems is a confusion with the different terms used in different countries, including Europe.

So: each vehicle has a 'registration document' in which the vehicle details are recorded - make, color, engine size, chassis and engine numbers. (What is this called in Mexico?)

Vehicles are registered for recording and taxation purposes: I gather in Mexico each state has its own database of vehicles - and car number plates to match. (Please correct me if I get things wrong!)

Therefore all cars on Mexican roads will be registered in one of the 32 states/districts.

In other nations every vehicle has to pay an annual tax - some kind of 'road tax' - according to its type and engine size (etc). Is this the same in Mexico, and what is this tax called? What form does it take - a windscreen sticker or a stamp in a book - or both?

Cars over a certain age usually need a road-worthiness test of some kind. What are the rules about this, and what is this called in Mexico? How is it recorded (separate document, a stamp in a book etc)?

If a car is registered in one particular state, how does this affect how and where the car is used in the future? 
For example:
1. are there any restrictions in where you can take your car (within Mexico)?
2. when the annual 'road tax' comes due, can this be renewed out-of-state through a local government office in a different area, or via the internet?
3. if you buy a car in a state where it is not registered, how is it then registered with a new owner?

I've read things about plates being linked to what I've called 'road tax' - and that some states need new plates every year and other states every three years and so on. Is this how it's done in Mexico, instead of having a window sticker to show the tax has been paid? Can somebody explain what this is all about please? 

When buying a car, what documents etc must be with it to make it legal? (And exactly what are these documents?)

That should do for starters! Thanks in anticipation!


----------



## perropedorro (Mar 19, 2016)

I can't answer all your questions authoritatively, robbie, because I've only registered two pick-ups, a current one nearly 20 years old, and a previous vehicle over 30, in Jalisco. The basic yearly fee is called _Refrendo Anual de Placas_. I've no idea if it's based on vehicular value, but mine was pretty cheap, last year =550 pesos. Of course there were a couple of damnable speed radar camera infractions in GDL which I was unaware of that required payment before they'd renew registration. That'll get you the yearly sticker you put on your windshield. Then there's a smog inspection which may not be everywhere but certainly is required in the big cities. Don't know exactly how this works--- my brother-in-law handles it, but he's the guy that knows how to get things done, who to pay off, etc. That'll get you another sticker.
There aren't any restrictions on Mexican vehicles going from state to state, but a U.S. or Canadian car needs a temporary importation permit to go beyond the border zone. They aren't fussy about where it's registered either, but you need a dependable address. My truck still has Jalisco plates (using a relative's address) but is mostly used where we live, in Colima. Less hassle.
I'm sure the vehicle database is national, rather that state-by-state. Although each state has a particular design, the plate number for every national vehicle will be unique because each will begin with a letter assigned to that state. Baja California="A", Jalisco="J", Sinaloa="V"and so on. CDMX, because of the volume of vehicles, has its own pattern.
Plate renewal every year or permanent--probably depends, but you likely need a new sticker every year.
No restrictions on vehicle condition, other than smog, and there are piles of rolling junk that somehow get registered. There are age restrictions, however, when it comes to permanent importation. If someone tries to sell you a "chocolate", i.e. a car with U.S. or Canadian plates, beware. It'll likely be more hassle to register in Mexico than it's worth.
Buying a vehicle is more complicated in Mexico. Bring all the ID you have. The seller will want to see your INE or resident card, Permanent or Temporal and a driver's license.
Ask around. My experience is limited, but hopefully gives you an idea of what to expect. Good luck on this.


----------



## robbiethinking (Nov 23, 2017)

Great stuff - thanks a lot!
Now to ponder on this . . . .:juggle:


----------



## surabi (Jan 1, 2017)

Where I live, in Nayarit, the yearly plate fees run about 550 pesos for my 2002 Ford Escape. You get stickers for the front and back windows. The plates are good for 3 years, then the 4rd year you pay more because you have to get a new plate (just another money grab as far as I can see).

There is no smog inspection here. But each state has different requirements.

If you buy an out-of-state vehicle (from another state in Mexico) you just take the old plates in and they are taken from you and new ones are issued for the state where you are registering it. ( Altho I have heard of people being told they have to personally return the old plates to the state where the plates are from, which seems absurd) This has to be done locally, you can't register a vehicle in Nayarit, say, if you are in Chihuahua. 

It's important, if buying a used vehicle in Mexico, to make sure that all the back registrations have been paid. If not, you will have to pay that before re-registering in your name. Doesn't matter that the previous owner was remiss, the onus is on the owner of the car, which would now be you.


----------



## eastwind (Jun 18, 2016)

I can tell you that in the US all of this depends on the state and sometimes city you are living in - and each state has different rules. The license plates are issued by the state, that much is consistent. But some states require you to replace them every so-many years, while some do not. I think you're right, it's a money grab, and more and more states are tapping the revenue opportunity and requiring tags be replaced. Most states have little stickers you have to put on the license plates on the back, one sticker gets replaced annually, the other shows the month the replacement must happen. All this is fairly consistent.

Some states require safety and emissions inspections that are done together, some require both but you have to go two different places. Some states require only one. Some states require the inspections annually, some every-other year, maybe some even less often than that. 

Some states tax the value of the vehicle, some tax it by its weight, most have some fees that apply regardless of the vehicle type, but some states have only fees. And each state changes their own rules occasionally. Virginia did away with their property tax on vehicles, then a few years later brought the tax back.

There are also municipalities that issue stickers that you have to pay for and apply.

The reason I mention all this about the US is because I have the _perception_ that rules and bureaucracy are _generally_ less consistent in Mexico than they are in the US. So I'd expect it to differ by Mexican state, further modified by random personal rules invented and enforced by the officials you deal with. 

I think you have to find a reasonably educated neighbor and ask them. I would also look around for some private cars (not commercial vehicles they probably have extra/different rules) with plates for your state and carefully observe what stickers they have and where they are on the vehicle.

I wouldn't assume that anything you've learned by research and googling is still valid unless you found the actual site for your state, and even then _that_ could be out of date.

Kaos Rulez.


----------



## surabi (Jan 1, 2017)

The most ridiculously 3rd world exercise I experienced here in Mexico was when first registering the Mexican second-hand vehicle I had purchased. To get the VIN numbers off the engine block, the transit official lay under my car in the hot parking lot with a used diesel-soaked rag, which he smeared over the embossed VIN numbers, then took a piece of scotch tape to rub over the 
now-black-with-oil numbers to transfer them. Then he crawled out from under the car, and stuck the ****** little pieces of scotch tape on the water bottle I was holding, at which point we went back up to the office where he removed them from my water bottle and stuck them on the back of my registration form. The numbers were all but illegible.
I told him there were little gadgets- electronic VIN number readers, which would make his job a lot easier. He said "Yeah, in the United States". I said "No, actually all the Mexican border Aduana agents have them, you should ask for one".
After all that, which took about an hour, I had to wait another hour and a half while he tried to put a call in to Tepic to "verify" the piece of paper I had had to go get there the day before, an all day affair (almost 4 hours of driving included), which had official stamps all over it. Why it needed to be verified by phone is one of those questions it's pointless to ask.


----------



## surabi (Jan 1, 2017)

If you are buying a used Mexican vehicle from a private party, it's a good idea to check first on the govt. website where they list all vehicles reported stolen.


----------



## robbiethinking (Nov 23, 2017)

surabi said:


> The most ridiculously 3rd world exercise I experienced here in Mexico was when first registering the Mexican second-hand vehicle I had purchased. To get the VIN numbers off the engine block, the transit official lay under my car in the hot parking lot with a used diesel-soaked rag, which he smeared over the embossed VIN numbers, then took a piece of scotch tape to rub over the
> now-black-with-oil numbers to transfer them. Then he crawled out from under the car, and stuck the ****** little pieces of scotch tape on the water bottle I was holding, at which point we went back up to the office where he removed them from my water bottle and stuck them on the back of my registration form. The numbers were all but illegible.
> I told him there were little gadgets- electronic VIN number readers, which would make his job a lot easier. He said "Yeah, in the United States". I said "No, actually all the Mexican border Aduana agents have them, you should ask for one".
> After all that, which took about an hour, I had to wait another hour and a half while he tried to put a call in to Tepic to "verify" the piece of paper I had had to go get there the day before, an all day affair (almost 4 hours of driving included), which had official stamps all over it. Why it needed to be verified by phone is one of those questions it's pointless to ask.


I thought this was normal?
It's the way they do it in Thailand. too.


----------



## robbiethinking (Nov 23, 2017)

Thanks for your interesting anecdotes - enjoyable. 

As far as I can figure out, the way the whole system works is like this:
(please correct anything I've got wrong and help me out with what I'm not sure about, in RED)

When a vehicle is first purchased, the original invoice (the _factura_) becomes a vital document, being passed from owner to owner, all of whom must sign the back when selling. This forms a record of the changes of ownership and should be kept safely - it is not possible to sell the car without this document.

When the vehicle is first registered it is issued with a registration card (_tarjeta de circulation_ - usually simply called the _tarjeta_). This card is not a permanent document which stays with the vehicle, but is valid for 3 years, after which time it must be renewed??
QUESTION: _is this something that the owner has to do every 3 years?_. 

If buying a car registered in another state, the current _tarjeta _is discarded and a new 3-year _tarjeta _issued for the state where the car is now being registered. (New plates will also be issued, as each state has its own plate code, similar to the USA.) If there are any outstanding or unpaid traffic violations (speeding or parking etc) then the new _tarjeta _will not be issued until these are paid. 

Information about the vehicle registrations in each state is kept locally but also networked in a national vehicle registration database.

There are two annual taxes to be paid:

Tax 1. what amounts to a 'road tax' - the _tenencia_. This is an ongoing document detailing the payment of tax on a yearly basis. This is a federal tax, not a local one, and is consistent across Mexico??. On a new car it is calculated at 3% of the value of the vehicle. On a car that's more than 10 years old it is cheaper?? Two window stickers (front and rear) are provided annually to show that this tax has been paid.

It is a legal necessity that there is a record of the last 4 years _tenencia _paid before the car can be sold - if not, the new buyer must pay the backdated tax.

Tax 2. a local tax that varies slightly in detail from state to state - '_el referendo vehicular_' - usually called the '_referendo_', or 'the plate tax'. This is an annual fee to ". . . endorse that the vehicle plates are valid" - effectively a tax just to be able to have plates on your car. Yippee.

I've heard it said that 'the plates are renewed annually (etc)' but is this true? Do the metal plates themselves have to be renewed, or is it simply that the plate _tax _has to be renewed?

There is no annual vehicle road-worthiness inspection and no document/certificate issued to verify the essential safety and mechanical condition of the vehicle, as happens in many other countries. The closest to this is that some states check the emissions level at the time that the registration card (_tarjeta_) is renewed. QUESTION: does this happen every time the _tarjeta _is renewed, or only when the vehicle changes owners?

I've got a much clearer picture now - thanks to all!


----------

