New GA tax law: A warning....

No law can cover every possible contingency that may happen in the future. Unlike the old law, the new law does fairly tax all car sales whether from individuals or dealers.

 

While it will certainly be easier with a dealer as they are accustomed to the procedure, I see nothing in the law to prevent such a trade-in credit for an individual to individual transaction as long as your Bill of Sale documents the exact amount you are getting for your trade and the exact amount of the difference you paid on the car you got in exchange.

 

Check this info out (from http://onlinemvd.dor.ga.gov/Tap/faqs.aspx/):

How is fair market value determined for a used motor vehicle?
•A used motor vehicle is any motor vehicle which has been the subject of a sale at retail to the general public.
•For a used motor vehicle, the fair market value is the value identified in the state motor vehicle assessment manual. This value is 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 a used motor vehicle for purposes of TAVT will generally be the same as the value that was used in the old annual ad valorem tax system.
•A reduction is made for the trade-in when the sale was made by a dealer, but not when the sale was made by a private individual.


BT

 

so sounds like leasing is the way to go......

 

As wrong headed as this law is, and as thin the defences of it are...

In the long run people like me are better off. I keep cars a long time. Long enough that paying a one time up front tax and not having to pay ad valorem tax annually would put money in my pocket. The cars I own now were bought before this law was enacted, so I will pay ad valorem on them annually as long as I own them. If I had the option of paying the one time tax on them now, I would take the option.

This law might result in more people like me. People might keep there cars a few more years to enjoy the "tax free" years. How are the dealers going to like that?

I drive my daily drivers about 10 years. I keep my exotics longer. Bully for me.

But if you are Car Reaper and have a history of keeping cars a short time -- screwed.

Jack

 

This whole scam was another tea party backed fail with major backing from the new car dealers lobby.

It was originally presented by the dealers over and over again and was constantly knocked down by the Ga leg. Then when lets make a Deal governor Nathan Deal was elected he had the tea bag anti tax backing & it sailed through.

Short sighted in every way.

These guys make the new England Mafia ward bosses I grew up with look like amateurs.
There is one difference, the Ward bosses were actually competent in their corruption, so people tolerated it.

Georgia has become the gang that cant shoot straight.

 

I like it here.


BT

 

Florida makes all this seem like kids stuff.

 

No kidding. The taxes here are something to talk about, but the property taxes and homeowner's insurance in Florida will make you sick. For a comparable house, we are saving about $23k per year on our household expenses of taxes, insurance, HOA, lawn, etc... (not even counting the mortgage!). Other than some good car nuts and a few close friends, most of south Florida is populated by unhappy jerks who try to make everyone else unhappy. The friendly people in Georgia are the best, and I have only heard our town mentioned once on the news outside of the weather segment!


BT

 

PDMRACING take your leftist agenda and move to New York or California where you will be appreciated. I would rather pay the one time fee instead of sales tax and yearly ad valorem tax.

 

I just paid the TAVT for a second motorcycle (and I have paid it for two trucks also), yet I only have kept one motorcycle and one truck. I guess it adds up to some wasted money on my part, but honestly the 6.5% has not affected my purchasing decisions at all. The first motorcycle (a 1250 Suzuki Bandit) never even got the tag installed on it. Way too much power for me. The second one (a Yamaha XT250) is much more my style.


BT

 

lol................ pete is a leftist......

luv it !!!!!!

 

I was at the Cherokee tag office this morning. Lady told me GA was the last state not to take tax on individual/private sales. It was just a matter of time. It was too much money not being collected by the state. My next question is why can't I just tag and title my next purchased cars at our house in SC and drive it here?

 

that's a flat out lie. arizona does not tax private sales.

oregon and montana also have no sales tax.

 

Nice I wonder why she would volunteer that information to me. She must have been misinformed.

 

All my cars are tagged to my house in SC. All are here in Atlanta.

Have you noticed how many SC tags you see in Atlanta?!

 

Jason, you MUST be mistaken. If your cars are all domiciled here they have to be tagged here. I am SURE you normally keep them in SC, and just occasionally bring them to GA...


BT

 

Yes, that's what I meant. ;-)

 

There is a difference between legally minimizing your taxes and felony tax evasion.

 

Tea party scam...come on Pete, what are you smoking? The Tax Enough Already party is for minimizing the tax burden of ALL Americans, in this case, Georgians, which is exactly what the new title fee law does. The only people against the new law are the ones who have been previously only buying from individuals, avoiding paying their fair share. While that was clearly unfair, albeit legal, everyone now pays their fair share. Isn't that what we want, for everyone to pay their fair share in taxes, no more, no less?

 

SC wants their share also. If the cars spend time in both places there is nothing wrong with tagging them where it is less costly. If the cars are all here in ATL for the summer but spend much of the year in SC, the SC office would not like to lose out on thier tag fees either. We tag the vehicles that stay here in GA through GA, and the vehicles that are with the kids in college or in other locations in FL through FL.


BT

 

Again, what is fair about a person paying a second round of sales tax on a used vehicle, compared to a vehicle staying with the same owner, using the same roads, etc... only paying the tax once when the car was new? When you buy used shoes at a garage sale, why don't you pay sales tax again? Same concept, smaller dollars.


BT

 

+1000000
Very well put. My thoughts exactly.

 

Last year I owned and sold 5 BMW's with a total book value of around $70k. I am not one to keep cars very long, and enjoy the fun in buying and selling, just to try different models and styles. This new law pretty much makes a buyer stick with the same car for years unless they want a huge tax bill on every buy.

Guess I'll start a title loan shark business and keep them registered under dealer plates.

 

OK, then explain it to me.