Private Car Sale Tax to Begin on March 1st

[5spdfrk]

Freaking joy! :no:


The Atlanta Journal-Constitution

Georgians who buy used cars from Craigslist, neighbors or friends are about to see the cost of their purchases rise sharply. But buyers who shop at dealerships are in luck.

Beginning March 1, a new law intended to collect taxes from private vehicle sales will mean the upfront cost of registering and titling a car in Georgia will increase for those who don’t buy from dealers.

The new one-time tax may change the way Georgians shop for cars by eliminating sales tax savings from private sales.

“If you are someone who bought cars from a dealership and held them, you’re better off under the new system, almost from day one,” said Douglas MacGinnitie, Georgia’s tax commissioner. “If you’re someone who buys from a casual sale frequently, you’re worse off.”

The annual ad valorem tax that Georgia residents pay for their cars on their birthday will disappear for all newly acquired vehicles. It will be replaced by the new one-time title tax that, while higher than the individual’s average annual ad valorem bill, could add up to savings for car owners who keep their vehicles for many years.

Timothy Nash of south Fulton County, who plans to buy a car for his 16-year-old son, said he’s glad the annual birthday tax is going away. Nash said he buys used cars from dealerships so he can finance his purchase.

Those who buy from dealerships likely won’t notice the difference at first. While they will no longer pay sales tax, the sales tax savings in most cases will be about the same as the cost of the new “title ad valorem tax.”

In 2013, that new one-time tax will be 6.5 percent of the vehicle’s worth. The figure will rise to 6.75 percent for 2014, and 7 percent in 2015. It eventually could climb as high as 9 percent of the vehicle’s worth.

Car shoppers who buy from places other than dealerships are used to paying only an $18 application fee and a tag fee when they register their vehicle. In the future, they’ll have a higher initial cost.

Srivatsan Ramachandran of Lilburn — who estimates he has bought 20 cars in private sales, and is shopping for another now — said the new tax is problematic for people who buy used cars because they can’t afford to buy new.

“If you were going to buy a car from a friend who was going to give you a good deal, that deal is gone,” he said. “They’re snatching it away.”

The change will likely make private sales more difficult, Ramachandran said, and encourage both buyers and sellers to simply go to dealerships.

Economic impact

About 60 percent of car sales in Georgia come from private sales, said Vicki Lambert, the director of local government services and the motor vehicle division for the Georgia Department of Revenue.

By collecting the new tax on private sales, Georgia will add an estimated $71 million to its coffers in 2013, said Ken Heaghney, the state’s fiscal economist. By 2014, that number is expected to rise to $260 million. In all, the state will collect an estimated $600 million to $700 million annually from the title ad valorem tax.

“We can only speculate on how people may react when you start taxing something you haven’t taxed before,” Heaghney said. “The title fee may cause people to shift from casual deals to the dealership.”

Kyle Jessen, who bought a new Range Rover on Thursday, said he would be opportunistic if he were still in the market for a car. The Brookhaven resident said he thinks if the system drives people to dealerships instead of private sales, that’s good — it could mean more jobs. An individual reselling a car doesn’t have the same impact on the economy, he said.

While he isn’t sure that already-purchased vehicles should be taxed again, Jessen said he likes that the new tax will hit all car buyers.

Effect on casual sales

Customers who in the past chose to sell their old cars themselves may instead elect to trade their vehicles in after March 1 because of the addition of the tax, said Jamey Holt, the Internet sales director for Global Imports BMW in Atlanta. That would be good for the dealership, he said, as would a system that taxes all vehicles at registration.

“It would drive more people to the dealer, absolutely,” said Corey Sanford, general manager of America’s Auto Auction — Atlanta. “If you’re buying cars that way (in private sales) to avoid the tax, to get around it, it’s not worth it anymore to do that.”

MacGinnitie said there is no provision in the law for a payment plan, so car shoppers making a private purchase must ensure they have the funds to pay the new one-time title tax before they buy.

The change should have an effect on the pricing of casual-sale vehicles, he said, which may become less expensive to accommodate the tax addition.

MacGinnitie is concerned, however, that people who are not used to paying sales tax on a private-sale purchase will not realize they will owe a lump sum when they register their car. For a 2005 Toyota Corolla worth $8,000, the one-time title tax in 2013 would be $520.

“It’s the biggest change, and could cause the most friction,” he said. “We can’t waive it, and we can’t delay it.”

The New Title Ad Valorem Tax

Starting March 1, it will cost more to register and title a vehicle in Georgia. The annual ad valorem tax, paid on a person’s birthday, will remain for people who owned their cars before 2012. But for everyone else, a new law will mean changes to the way vehicles are taxed. For some, it will mean big savings. For others, it will be a big expense.

Under the new law, the fee for all vehicles titled between March 1 and the end of 2013 will be 6.5 percent of the worth of the vehicle. The figure will rise to 6.75 percent for 2014, and 7 percent in 2015. It eventually could climb as high as 9 percent of the vehicle’s worth.
Those who bought cars between Jan. 1, 2012, and Feb. 28, 2013, will have the option to pay the ad valorem tax for the life of their car, or to opt into the new title tax. The opt-in period lasts from March 1 until the end of 2013. Those who opt in will not get refunded for any ad valorem they already paid, but will get credit for paying sales tax if the car was not purchased in a private sale.
The old ad valorem tax system will continue to exist for vehicles titled in 2011 or earlier.
People who lease cars will continue to pay sales tax and the dealership will pay the title ad valorem tax. Dealerships could include the cost of that tax in their fees.
People who move into Georgia with a car after March 1 will have to pay the new tax on any vehicles entering into the state when they register their cars in Georgia. New out-of-state residents will have to pay half the fee up front, and will have a year to pay the rest.
Vehicles passed between immediate family members — spouses, parents, children, siblings, grandparents or grandchildren — will pay a reduced fee of 0.5 percent of the car’s worth to title the vehicle, provided the full one-time title ad valorem tax already has been paid.
People who were exempt from paying the annual car tax, such as disabled veterans, are exempt from the new tax.
Vehicles that are older than 1985, and are not required to have titles, are only affected if the owner decides to get a title after March 1.
Vehicles that aren’t titled, such as boats and trailers, aren’t affected by the new law.

To calculate how much the new tax would cost you, see Georgia Department of Revenue (http://onlinemvd.dor.ga.gov/Tap/welcome.aspx)

Link to AJC (http://www.ajc.com/news/news/new-one-time-car-tax-raises-cost-of-private-sales/nTkJc/)

[Matt300ZXT]

TN pays a tax on car purchases like that. It's the same tax rate as if I went to Best Buy and bought a new tv, then the small tag fee.

[5spdfrk]

Right and the TV from best buy is new. Would you want to be taxed again if you were buying someone's used TV?

Plus, it's not the same tax rate that we pay on sales tax since each county is different. Not to mention that this tax is increasing over the next two years with the possibility of going up to 9%

[Matt300ZXT]

Yeah, well ours is 9.25%, so you still have it easier than we do. Let's say I buy a car and the title and BOS reflect I paid $5000 for the car. When I go to tag and title it, I have to pay $10 to emissions test the car, $462.50 in taxes, and I think $25 on a tag fee. So I have to pay a grand total of $5497.50 to drive a car I just bought. From what I recall, in GA it's just a flat fee on titling the car, something like that. So why don't you guys cry some more, cuz we've been having to pay these extra fees for years.

[5spdfrk]

I hear ya, but yes I will continue to :cry: because they're collecting tax each time the same car is sold...which means that could be 20 times the way some cars are sold on IA lol. That's excessive imho.

[Browning151]

So, looking at the Dept. of Revenue site it looks like they base the vehicle value on what the bill of sale shows. Looks like you can still skirt a big hit from this with a bill of sale that says you only paid $500 for the car? Seems to me like this is going to cause a ton of confusion for people, and it's obvious that this is A) nothing more than a giant money grab for the state and B) that this was almost certainly heavily lobbied for by dealers.

[5spdfrk]

I don't think so Browning...seems to obvious of a loophole for them to overlook. According to the FAQs...
Vehicles identified in the Georgia Department of Revenue motor vehicle valuation data base have a fair market value calculated by averaging the current wholesale and retail values of the motor vehicle pursuant to O.C.G.A. �˜ 48�]5�]442. Accordingly, the fair market value for purposes of the TAVT will generally be the same as the fair market value used in the current ad valorem tax system.

[Sammich]

S/O Nermin LOL

[.blank cd]

After my birthday I'll be ad valorem free!

[Matt300ZXT]

The way it works in TN is, let's say a car's KBB is $10,000. Obviously they know better if you come in with just a title saying you paid $3,000 for a 3 year old used car. They say if the title value is a certain percentage below KBB, then they charge you taxes as if you paid $10,000 for the car. That's where the BOS comes in handy. If the BOS is signed by the last owner and they wrote $3,000 on it then they can only charge you taxes on $3,000.

The reason I know this is I bought a salvage titled Probe GT once that obviously was salvaged, and had high miles, and Probes just aren't worth much anyways. I forgot what I paid, but I didn't get a BOS because I had the title. I take it in to title it and they said the price was too far below the KBB to only charge me taxes on what I really paid. I said but it's a salvage title, and has really high miles, the car is nowhere near worth what KBB says and she said that didn't matter, I had to have a BOS from the owner also saying I paid what I paid. So I just drove 30 minutes up the road to his work, and he signed the BOS I printed out and then took it back to the DMV and actually paid taxes on what I paid for the car.

So take it from a TN native, get the title and BOS to match what you pay, but don't expect to buy a 3 year old used car and say you paid what you'd expect to pay for a 10 year old used car. Because I'm sure that shit will eventually come back on you somehow.

[David88vert]

After my birthday I'll be ad valorem free!

Not unless you by a new car after 3/1/2013.
"The annual ad valorem tax, paid on a person’s birthday, will remain for people who owned their cars before 2012."

[.blank cd]

Bought mine in may. Birthdays on the 9th of March

[David88vert]

Bought mine in may. Birthdays on the 9th of March

So, you have a choice. You can either pay 6.5% during 2013, and not have to pay the birthday tax anymore (but no refund for the birthday tax that you paid in 2012 already, or for what you might pay in March) .... OR... you will continue to have to pay the birthday tax as long as you have the car. You are actually getting the worst deal of anyone.

"Those who bought cars between Jan. 1, 2012, and Feb. 28, 2013, will have the option to pay the ad valorem tax for the life of their car, or to opt into the new title tax. The opt-in period lasts from March 1 until the end of 2013. Those who opt in will not get refunded for any ad valorem they already paid, but will get credit for paying sales tax if the car was not purchased in a private sale.
The old ad valorem tax system will continue to exist for vehicles titled in 2011 or earlier."

[.blank cd]

Which means the week before my birthday, I pay ad valorem one last time, which comes out to about 200 bucks, and I don't pay it ever again

Not a bad deal if you ask me. Lol

[Browning151]

I don't think so Browning...seems to obvious of a loophole for them to overlook. According to the FAQs...

Thought that would be a little too easy, I didn't look at the OCGA just glanced at the site quickly.

[David88vert]

Which means the week before my birthday, I pay ad valorem one last time, which comes out to about 200 bucks, and I don't pay it ever again

Not a bad deal if you ask me. Lol

Did you even read the article?

You either pay the ad valorem every year that you own the car from now on, or you pay the title tax and get no credit for the ad valorem that you paid last year.
You don't just get to pay ad valorem this year, and not have to pay again next year, unless you get rid of the car this year.

[.blank cd]

Did you even read the article?

You either pay the ad valorem every year that you own the car from now on, or you pay the title tax and get no credit for the ad valorem that you paid last year.
You don't just get to pay ad valorem this year, and not have to pay again next year, unless you get rid of the car this year.

According to the article and the DOR site it references, if I opt-in, I will owe around 200 bucks for the car I purchased in may 2012 on the week of my birthday and nothing more for this car, ever. This is old news. I had this figured out last year, before I bought the car. So yes, I did read the article again, and yes, I will be ad valorem free after my birthday. ::goodjob::

Edit: GA Dept of Revenue, not transportation. Sorry.

[David88vert]

According to the article and the DOT site it references, if I opt-in, I will owe around 200 bucks for the car I purchased in may 2012 on the week of my birthday and nothing more for this car, ever. This is old news. I had this figured out last year, before I bought the car. So yes, I did read the article again, and yes, I will be ad valorem free after my birthday. ::goodjob::


Then I'm guessing that you have a car valued around $3000-$3500. if so, then yes, it won't be to bad for you. If you were in a $30K car, then it would be completely different.

[.blank cd]

Then I'm guessing that you have a car valued around $3000-$3500. if so, then yes, it won't be to bad for you. If you were in a $30K car, then it would be completely different.

Something tells me you didn't read the article. Lol. I'd consider not replying again cause you'll keep being wrong. Lol

[David88vert]

Something tells me you didn't read the article. Lol. I'd consider not replying again cause you'll keep being wrong. Lol

I've read the details in the OCGA. You never stated that if you bought from a dealership and already paid sales tax, or a private sale.
IF you bought from a dealership and paid sales tax already, then the sales tax amount can be applied to the opt-in title tax. Your ad valorem amount from 2012 will not be credited though. So even if your sales tax covers almost all of the amount, and you opt-in, and only have to pay $200 more, you will still lose out last year's cost. You are not just paying about $200 ad valorem, as you stated originally. You wouldn't be paying ad valorem at all, just the difference between the sales tax that you already paid, and what would be owed on the title tax.
If you paid from a private sale, then you will have to pay title tax to opt-in. If it was only $200, then you only have a $3000-$3500 KBB value.

Something tells me that once again, just like in all of you post in the political forum, you really don't understand how the government or taxes work.

[.blank cd]

IF you bought from a dealership and paid sales tax already, then the sales tax amount can be applied to the opt-in title tax. Your ad valorem amount from 2012 will not be credited though. So even if your sales tax covers almost all of the amount, and you opt-in, and only have to pay $200 more, you will still lose out last year's cost. You are not just paying about $200 ad valorem, as you stated originally. You wouldn't be paying ad valorem at all, just the difference between the sales tax that you already paid, and what would be owed on the title tax.

Something tells me that once again, just like in all of you post in the political forum, you really don't understand how the government or taxes work.Im glad you read the OCGA. Read it again, write it down, take a picture, chisel it on a stone tablet or something. The thing is, GA DOR still refers to it as a title ad valorem. So I'm still 100% right. Just like in all of my posts in the political forum. If I don't understand how taxes and governments work, you REALLY don't understand how taxes and governments work.

[1439/2000]

Scenario for those more educated about the new law than me:

I have a car from 1976 that I haven't registered yet but I have a title. I haven't driven it on the street yet but I plan to and if they go off of value averages then I'm screwed.


Should I register it now to beat the new "average value" segment?

[Echonova]

According to the article and the DOR site it references, if I opt-in, I will owe around 200 bucks for the car I purchased in may 2012 on the week of my birthday and nothing more for this car, ever.Doesn't really sound like you're doing "your fair share". If you can afford to pay more in car taxes you should, because those less fortunate need help.

[eraser4g63]

Well said echo, well said.

[.blank cd]

Doesn't really sound like you're doing "your fair share". If you can afford to pay more in car taxes you should, because those less fortunate need help.

Just because I hide my money in offshore brand new car tax havens doesn't mean I'm not a true patriot.

[Echonova]

We need a new assault car taxation plan, to prevent tragedies like this from ever happening again.

[Sinfix_15]

Just because I hide my money in offshore brand new car tax havens doesn't mean I'm not a true patriot.

I have a 2005 car.... if you have a 2012 car, they should take your car away from you and give us both 2009 cars. It's only fair........

[Sinfix_15]

We need a new assault car taxation plan, to prevent tragedies like this from ever happening again.

Saw in the news two women got into a fight over a parking spot at walmart and one woman ran into the other woman with her car.......

oh my lord dear jesus we cant have these things happening on american soil.... we've got to find a way to keep cars out of the hands of females and stop worrying about public opinion or political gains.

[.blank cd]

I have a 2005 car.... if you have a 2012 car, they should take your car away from you and give us both 2009 cars. It's only fair........

If it lowers my payment and raises yours, I'm all about it! Lol.

[Sinfix_15]

If it lowers my payment and raises yours, I'm all about it! Lol.

thats not how it works, you make more money than me so you can afford to pay more. We still deserve to have the same cars though, i'm entitled to have things i dont work to obtain.

if you can afford to pay more, you should. It's the american way. Sometimes i go to mcdonalds and pay them $35 for a double cheeseburger. Why? because i could have afforded to go to red lobster instead.

[.blank cd]

Scenario for those more educated about the new law than me:

I have a car from 1976 that I haven't registered yet but I have a title. I haven't driven it on the street yet but I plan to and if they go off of value averages then I'm screwed.


Should I register it now to beat the new "average value" segment?

Is the title in your name already?

[bu villain]

Scenario for those more educated about the new law than me:

I have a car from 1976 that I haven't registered yet but I have a title. I haven't driven it on the street yet but I plan to and if they go off of value averages then I'm screwed.


Should I register it now to beat the new "average value" segment?

I don't think there are any 1976 cars that would cause much of problem. They aren't looking at average values for restored show versions of those cars or anything like that.

[1439/2000]

I don't think there are any 1976 cars that would cause much of problem. They aren't looking at average values for restored show versions of those cars or anything like that.

It's a Ferrari, there aren't really any beater values out there to help my value out. Mine isn't worth as much as the average because I bought it as a project but the average is upwards of 35- 40 k. I definitely don't want to pay the 6% on that.

I have the title but I haven't registered it in my name yet until I planned on driving on the street (maybe a year or two away).

Since I've owned the car since 2011 the tag office says I would be grandfathered in and just pay the back taxes/ ad valoram instead of the new rate. I'm going to try and confirm that with another person tomorrow though, I'm just in a weird situation I suppose.

[bu villain]

It's a Ferrari, there aren't really any beater values out there to help my value out. Mine isn't worth as much as the average because I bought it as a project but the average is upwards of 35- 40 k. I definitely don't want to pay the 6% on that.

I have the title but I haven't registered it in my name yet until I planned on driving on the street (maybe a year or two away).

Since I've owned the car since 2011 the tag office says I would be grandfathered in and just pay the back taxes/ ad valoram instead of the new rate. I'm going to try and confirm that with another person tomorrow though, I'm just in a weird situation I suppose.

But you were expecting to pay ad volorem every year anyways so a one time payment of a thousand or so isn't too big of a difference than paying a few hundred every year is it? It's actually much better if you plan on keeping the car for at least a few years.

[1439/2000]

Paying ad valorem still bottoms out on the year on these things. So there is a big difference in paying back ad valorem for 3 years = +/- 100 bucks total as opposed to a one time tax of the "average" value of these things because I DON'T have a bill of sale ONLY a title which doesn't have a value on it. Since I don't have a piece of paper with the value they let me know the AVERAGE is 40k. Well 6% of 40k is 2400 bucks one time.


So now do you see the difference? $2400 one time > $100 total for the last 3 years.

What I was advised to do by the tag office was to register it without a title (just using the title as the bill of sale) and then I would still be exempt. They confirmed if I switched the title to my name when I go to register it after Mar. 1 then I would fall under the new law. So, I'll hang on to the title and register it without it and skip out on pissing away THOUSANDS of dollars for no good reason.

[BenjaminJunu]

we have a 7% sales tax on used cars in florida already, and to make matters worse the cost of a tag is around $200 plus. It's stupid as hell.
a $10,000 will cost you around 1000 to register it in Florida.

[bu villain]

Paying ad valorem still bottoms out on the year on these things. So there is a big difference in paying back ad valorem for 3 years = +/- 100 bucks total as opposed to a one time tax of the "average" value of these things because I DON'T have a bill of sale ONLY a title which doesn't have a value on it. Since I don't have a piece of paper with the value they let me know the AVERAGE is 40k. Well 6% of 40k is 2400 bucks one time.


So now do you see the difference? $2400 one time > $100 total for the last 3 years.

What I was advised to do by the tag office was to register it without a title (just using the title as the bill of sale) and then I would still be exempt. They confirmed if I switched the title to my name when I go to register it after Mar. 1 then I would fall under the new law. So, I'll hang on to the title and register it without it and skip out on pissing away THOUSANDS of dollars for no good reason.

Ah, I thought both fees were based on the same assumed value of the car and thus a few years of ad volorem was comparable. Thanks for setting me straight.

[.blank cd]

I've read the details in the OCGA. You never stated that if you bought from a dealership and already paid sales tax, or a private sale.
IF you bought from a dealership and paid sales tax already, then the sales tax amount can be applied to the opt-in title tax. Your ad valorem amount from 2012 will not be credited though. So even if your sales tax covers almost all of the amount, and you opt-in, and only have to pay $200 more, you will still lose out last year's cost. You are not just paying about $200 ad valorem, as you stated originally. You wouldn't be paying ad valorem at all, just the difference between the sales tax that you already paid, and what would be owed on the title tax.
If you paid from a private sale, then you will have to pay title tax to opt-in. If it was only $200, then you only have a $3000-$3500 KBB value.

Something tells me that once again, just like in all of you post in the political forum, you really don't understand how the government or taxes work.

I bet you feel like a jackass now huh?
http://i.imgur.com/UsyC8MFl.jpg

[jR1_kS14]

Do you guys often see cars with red dealer plates on the road?

you can thank them for the passing of this tax.

They passed this law because people from out of state were coming here to dealer auctions and buying all the used cars, and not pay sales tax. they easily flipped it within the same state, and still paid no sales tax on it.

it's a stop to the loophole system as buyers are hopefully aware that they will have to pay a sales tax on the car, so it leaves room for them to negotiate the price lower.

it really sucks for exotic car owners. dealers here in GA are going to take a huge hit if they don't put their cars in a new separate bracket. $28,000 in taxes, on a new lambo adventador... that's ridiculous.

[Aeroscout977]

Does Georgia still charge sales tax when you get tags?

[Browning151]

dealers here in GA are going to take a huge hit if they don't put their cars in a new separate bracket. $28,000 in taxes, on a new lambo adventador... that's ridiculous.

Last time I bought a car from a dealership I paid sales tax, even before this new system, this hasn't changed anything in that respect.

[§treet_§peed]

Like I've said before. Uncle Sam has to get his hard earned share.

[BanginJimmy]

it really sucks for exotic car owners. dealers here in GA are going to take a huge hit if they don't put their cars in a new separate bracket. $28,000 in taxes, on a new lambo adventador... that's ridiculous.

Up from what? 25k?

If you can afford the Lambo, you can afford the taxes on it.

[BanginJimmy]

I bet you feel like a jackass now huh?
http://i.imgur.com/UsyC8MFl.jpg

You decided not to opt in and just keep paying the ad valorum?

[Aeroscout977]

Up from what? 25k?

If you can afford the Lambo, you can afford the taxes on it.


I may or may not have gotten away without paying sales Tax on my car. Not sure. That's why I'm asking if you pay sales tax when you get tags.

[BanginJimmy]

Does Georgia still charge sales tax when you get tags?

Yea, its now 6.5% on what the DOR assumes your vehicle is worth.

[jR1_kS14]

Up from what? 25k?

If you can afford the Lambo, you can afford the taxes on it.

lol i knew this comment would come up... you're right, you can.

chances are, the car was bought out of state. everyone buying a new car should get it from out of state...

but as a businessman, it would be stupid to. you're better off starting a business in another state, and registering the exotic through the business itself, to avoid the GA sales tax. $28,000 will last you the lifetime of the car, having to pay for tag.

even if you have to pay $1000 a year to drive an adventador... that's 28 years of ownership and maybe 0.0000001% of exotic car owners keep their car for that long.

[.blank cd]

You decided not to opt in and just keep paying the ad valorum?

No. According to the calculator, what i owe is even less than that

[Elbow]

Going to register my new car TODAY. lol

[Aeroscout977]

Yea, its now 6.5% on what the DOR assumes your vehicle is worth.

:D

[.blank cd]

Going to register my new car TODAY. lol

Wait til march 1 fool!

[BanginJimmy]

No. According to the calculator, what i owe is even less than that

Good deak then.

Sent from my S3 using Tapatalk 2.

[.blank cd]

Good deak then.

Sent from my S3 using Tapatalk 2.

I'll post up the receipt next week when I pay for it.

[Elbow]

Wait til march 1 fool!

Why? I was under the impression it would cost more.

[BanginJimmy]

I know people that purchase from private sellers are going to get screwed in this. My MIL is one of those and she is pissed about it.

I guess I could go back and read the article or check the actual code or law, but I will be lazy instead. Can you use out of state sales tax like you can with in state sales tax to offset the title tax?

[Manny Naber]

My business is going to benifit from this greatly. Awesome.

[Elbow]

According to the estimate calculator I saved money by registering today.

[Aeroscout977]

I know people that purchase from private sellers are going to get screwed in this. My MIL is one of those and she is pissed about it.

I guess I could go back and read the article or check the actual code or law, but I will be lazy instead. Can you use out of state sales tax like you can with in state sales tax to offset the title tax?

All I know is when I first bought my car they wanted 600ish. I asked New York state and they said $16 :/

[05dc5s]

So, looking at the Dept. of Revenue site it looks like they base the vehicle value on what the bill of sale shows. Looks like you can still skirt a big hit from this with a bill of sale that says you only paid $500 for the car? Seems to me like this is going to cause a ton of confusion for people, and it's obvious that this is A) nothing more than a giant money grab for the state and B) that this was almost certainly heavily lobbied for by dealers.

Completely false. The new tax will be based on market value of the vehicle and dealers are fighting it furiously. GADA is aggressively attempting to make the process simpler for both dealers, customers and are in the process of preventing the customers that would lease vehicles.

[05dc5s]

Which means the week before my birthday, I pay ad valorem one last time, which comes out to about 200 bucks, and I don't pay it ever again

Not a bad deal if you ask me. Lol

No if you you purchased a car the amount you pay in sales tax would be credited towards the opt in option so, you're not going to be out of pocket.

[05dc5s]

Simply put here is how it works. The new TAVT replaces both the sales tax normally charged on the vehicle and the "birthday" tax. Now, how it will work it is that it you will pay 6.5% based on what the DOR considers the market value to be and then you are done no longer paying sales tax of the "birthday tax". The TAVT will increase annually and is estimated to cap out at ~7%. The advantage is that if you purchased your car recently or post 3.1.12 you will save money based on the elimination of your birthday tax. The two major objections the GADA(Georgia auto dealer association) has are that it is both confusing and counter intuitive to base the TAVT off of the DOR "market" value with the other objection being that consumers that choose to lease will pay TAVT on the cap cost(lease selling price) along will still having to pay tax on the monthly payment(double taxing the consumer). This of course will greatly impact individuals/businesses that choose to lease based on their ability to write off leases more effectively for business purposes, those that lease for economic reasons and high end cars that depreciate rather quickly making it a slightly more financially sound decision while allowing the consumer to change cars more frequently without that depreciation exposure.

It is a revenue increase because it doesn't allow those that purchase cars and avoided paying taxes before. The benefit to dealerships is that it reduces the disparity between the cost of a purchase outside of a dealer and one via a dealer. That is it's only boon though, the loss of business from consumers through leasing and the confusion caused by the TAVT being based on the market value will initially offset that. A bill attempting to simplify the process and not double tax consumers that choose to lease has made it through the house, stalled in the senate, revised and is now being reviewed by the house again. Any changes made though, will not going into affect prior to ad 90 day period.

This link is a good source to see how those that elect to opt in will be affected and help them make an informed decision on whether or not they should choose to participate or abstain from their choice. Georgia Department of Revenue (http://onlinemvd.dor.ga.gov/Tap/vinnumber.aspx)

[SPOOLIN]

oyy. this in my opinion will make people keep their cars longer......which means extending the time those taxes are brought in.

[05dc5s]

oyy. this in my opinion will make people keep their cars longer......which means extending the time those taxes are brought in.

There are reasons it could extends peoples trade cycles but like with anything else it will only cause purchase processes to change and adapt. Lets say less people sell cars outright because that market softens due to potential consumers no longer having the lack of sales tax advantage...well then those customers are likely to trade their car however, they then receive a credit based on the amount the dealer allows them for the car. This is where it could benefit dealers however, since the birthday tax along with the sales tax is now all front loaded it will extend their trade cycle causing less cars being sold. There are pro and cons for both the consumers and the dealers. Ultimately it will be a revenue increase in the interim but, the market will simple shift with the change and those that adapt quickly can take advantage and those that cannot won't. Really it's just like anything else.

[Manny Naber]

^ that can slightly benifit us (Im a dealer) but what sucks is now we have to charge taxes based on NADA style values which is bullshit. If I have a 10k dollar car on my lot with some paint damage or something and trying to sell cheap for 5k....I have to charge the customer tax on 10k...bleh.

[05dc5s]

^ that can slightly benifit us (Im a dealer) but what sucks is now we have to charge taxes based on NADA style values which is bullshit. If I have a 10k dollar car on my lot with some paint damage or something and trying to sell cheap for 5k....I have to charge the customer tax on 10k...bleh.


I somehow doubt the ~$300 in sales tax diff will cost you a sale on that car. Dealers selling used cars will benefit because you'll get business from would be private party buyers and people negotiating drive out prices allowing you more profit. This will happen because most often you'll be selling the car for more than what the state deems its market value to be. So if a bottom line is negotiated and the TAVT is based on a lower value you can have a higher selling price.

[Manny Naber]

I somehow doubt the ~$300 in sales tax diff will cost you a sale on that car. Dealers selling used cars will benefit because you'll get business from would be private party buyers and people negotiating drive out prices allowing you more profit. This will happen because most often you'll be selling the car for more than what the state deems its market value to be. So if a bottom line is negotiated and the TAVT based on a lower value you can have a higher selling price.

I agree.

[Sinfix_15]

So i paid $300 today for a tag on a 2003 motorcycle............

This is horse shit.

[MOWE]

welcome to the club...and god forbid you sell it and get another bike after the season...well pay another tax kind sir !

[.blank cd]

So i paid $300 today for a tag on a 2003 motorcycle............

This is horse shit.

How long do you plan on owning this motorcycle, and what would you have paid without the new law?

[Sinfix_15]

How long do you plan on owning this motorcycle, and what would you have paid without the new law?

My avg time owning a vehicle is about a year. What would i have paid before??? something i wouldnt have even noticed or remembered..... like $35-40

[.blank cd]

The law isn't perfect. I wouldn't be surprised if it got replaced with something soon. I understand why they did it. Some people, like me, benefited. Others didnt.

[Sinfix_15]

The law isn't perfect. I wouldn't be surprised if it got replaced with something soon. I understand why they did it. Some people, like me, benefited. Others didnt.

It was aimed at fucking the vast majority. I am the vast majority, i was fucked.

[.blank cd]

It was aimed at fucking the vast majority. I am the vast majority, i was fucked.

I dunno. I wouldn't be so sure on that. Do you know how many people buy cars from dealers in GA?

It would seem like a lot of people buy private since that's what happens on here all the time. But the people who benefited bought their vehicle from a dealer. That tag fee was rolled into the price of the vehicle at the signing chair.

[Sinfix_15]

I dunno. I wouldn't be so sure on that. Do you know how many people buy cars from dealers in GA?

It would seem like a lot of people buy private since that's what happens on here all the time. But the people who benefited bought their vehicle from a dealer. That tag fee was rolled into the price of the vehicle at the signing chair.

Buying a new car is usually a long term commitment...... buying a used motorcycle isnt. This discourages the exchange of vehicles in the private market.

[.blank cd]

Buying a new car is usually a long term commitment...... buying a used motorcycle isnt. This discourages the exchange of vehicles in the private market.

Lets use "person to person" market so we don't get confused with dealers, who are a also private market when compared to the government.

The government wasnt getting sales tax from p2p sales, so why would it be in the government interest to protect them?

[Sinfix_15]

Lets use "person to person" market so we don't get confused with dealers, who are a also private market when compared to the government.

The government wasnt getting sales tax from p2p sales, so why would it be in the government interest to protect them?

At what point are we taxed enough? at what point does the government say "hey, lets let people live their lives" instead of "where's my piece of the pie, you better not be eating any fucking pie without giving us a piece"

[MOWE]

It was aimed at fucking the vast majority. I am the vast majority, i was fucked.


No..sir you were stood up...I moved to ATL and registerd my 2 cars that I had paid taxes on in my previous states and had to pay $3700 just to register them here...that sir is being fcuked.....

[Sinfix_15]

No..sir you were stood up...I moved to ATL and registerd my 2 cars that I had paid taxes on in my previous states and had to pay $3700 just to register them here...that sir is being fcuked.....

The long dick of government..... i had to suck it, they rammed it up your ass.

[.blank cd]

At what point are we taxed enough? at what point does the government say "hey, lets let people live their lives" instead of "where's my piece of the pie, you better not be eating any fucking pie without giving us a piece"

It's not really being taxed more. It appears they're getting just about as much pie, they've just shifted where they get their pie from.

I guess execpt in MOWE's case

Look at it this way. My tag tax was much higher than yours.

[ISAtlanta300]

The government wasnt getting sales tax from p2p sales, so why would it be in the government interest to protect them?

The government already got his sales tax when the car was bought new. This is just another way to 'keep milking the cow until it is dead'.....