What type of tax do car owners face annually?

Car owners typically face a license tax annually, which is often referred to as vehicle registration fees. This tax is imposed by the state to allow vehicle owners to legally operate their vehicles on public roads. Licensing taxes contribute to the regulation and maintenance of state and local transportation systems.

While property taxes are assessed on real estate and excise taxes may apply to certain goods, these do not specifically target vehicle ownership in the same way. Sales tax is typically associated with the initial purchase of the car rather than ongoing ownership. The annual licensing tax is a fee specifically related to maintaining the registration and licensing requirements for vehicles, making it the most accurate answer in this context.