1. What is TRA Valuation?

The TRA (Tax Reform Act) valuation method is used by the Oklahoma Used Motor Vehicle Commission to determine the fair market value of used vehicles for tax purposes. It calculates the average of comparable sales of similar vehicles in the same market area.

2. How Does the Calculator Work?

The calculator uses the TRA valuation formula:

Where:

• \( FMV \) — Fair Market Value (USD)
• \( \sum Comparable\ Sales \) — Sum of all comparable vehicle sale prices
• \( Number\ of\ Comparables \) — Count of comparable vehicles used

Explanation: The calculator averages the prices of similar vehicles sold recently in the same market area to determine a fair market value.

3. Importance of FMV Calculation

Details: Accurate FMV calculation is crucial for determining proper tax assessments, ensuring fair trade values, and maintaining compliance with Oklahoma vehicle regulations.

4. Using the Calculator

Tips: Enter at least two comparable sale prices (required). For more accurate results, include 3-4 comparable sales. All values must be valid (positive numbers).

5. Frequently Asked Questions (FAQ)

Q1: What qualifies as a comparable vehicle?
A: Similar make, model, year, mileage, condition, and sold within the same market area within the last 90 days.

Q2: How many comparables should I use?
A: The Oklahoma Commission recommends using at least 3 comparable sales for accurate valuation.

Q3: What if my vehicle has special features?
A: Adjustments may be needed for significant differences in options or condition between your vehicle and the comparables.

Q4: Where can I find comparable sales data?
A: Licensed dealers can access auction reports, dealer sales data, and valuation guides approved by the Commission.

Q5: How often should valuations be updated?
A: For tax purposes, valuations should be current within 90 days of the transaction date.