1. What is TRA Valuation?

The TRA (Tax Revenue Assessment) valuation determines the fair market value of used motor vehicles for tax purposes in Louisiana. It's based on comparable sales of similar vehicles in the same market area.

2. How Does the Calculator Work?

The calculator uses the average of comparable sales:

Where:

• \( Sale_1, Sale_2, Sale_3 \) — Prices of three comparable vehicles
• \( FMV \) — Fair Market Value in USD

Explanation: The equation calculates the arithmetic mean of three comparable vehicle sales to determine the fair market value.

3. Importance of FMV Calculation

Details: Accurate FMV is crucial for determining the correct tax assessment on used vehicle transactions in Louisiana. It ensures fair taxation and prevents under/over valuation.

4. Using the Calculator

Tips: Enter three comparable sale prices in USD. All values must be valid positive numbers. The calculator will compute the average as the fair market value.

5. Frequently Asked Questions (FAQ)

Q1: What makes a good comparable sale?
A: Similar make/model/year, comparable mileage, same geographic market, and recent transaction (within 90 days).

Q2: How many comparables should I use?
A: Louisiana TRA typically requires at least three comparable sales for accurate valuation.

Q3: What adjustments might be needed?
A: Adjustments may be needed for mileage differences, optional equipment, or vehicle condition.

Q4: When is this valuation method not appropriate?
A: For rare/unique vehicles where comparables are unavailable, or for vehicles with significant modifications.

Q5: How often should FMV be recalculated?
A: For tax purposes, FMV should be determined at time of sale/transfer. Market values can fluctuate monthly.