Ad valorem tax gone in a year... replaced with 6.5% registration fee

[green91]

http://www.ajc.com/news/georgia-government/annual-car-tax-nears-1404499.html

Heads up for those of us who buy/sell cars private party... after March 1, 2013 the ad valorem tax is going to be replaced with a 1 time 6.5% registration fee, even on private party sales. Looks like the state is tired of not making money on private party sales! The fee has to be paid at the time of registration or not tag will be issued.

[Bacon]

If that 6.5% is based on the sale price of the vehicle, I can see a lot of people writing $1000 on a bill of sale. Not much money to be made on that.

[green91]

It will be based on FMV according to another article i read.

The good news is on retail vehicles it replaces sales tax + ad valorem. So its just a one time 6.5% - 7.0% fee.

Other downside is the new fee will not be a tax deduction like Sales tax and Ad valorem are now.

[CSquared]

I've been buying "$500" cars for years. :D

[SPOOLIN]

right, lol. the guys from alabama always say "put 500$ on that bill of sale"

6.5% is lunacy.

guess i better switch up my vehicle to something im gonna wanna keep for a while at that point

[green91]

http://www.11alive.com/news/article/234824/3/NEW-INFO-Sales-tax-AND-ad-valorem-tax-on-vehicles-in-Georgia-being-replaced-by-title-tax

It will be based on FMV. not sure if there will be exemptions like salvage title cars etc.

[BanginJimmy]

I love this move. People complaining about 6.5% need to really think this through. Unless you keep your vehicles for less than 3 years, this will save you money in the long run.

[green91]

I buy a new vehicle every 2-3 years, but it makes pretty much no difference on new vehicles, actually makes it cheaper.

[BanginJimmy]

I buy a new vehicle every 2-3 years, but it makes pretty much no difference on new vehicles, actually makes it cheaper.

Should have read the article before posting.

Too bad this doesnt apply to me.


Anyone want to buy a Ram for a few days? After March 1, 2013 I mean.

[RL...]

This actually doesnt sound like a bad thing. Too bad Im still going to have to pay ad valorem though since I bought my car last year.