Private Car Sale Tax to Begin on March 1st

[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?

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.

[.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

[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'.....