link to the actual bill as passed- HB386
http://www1.legis.ga.gov/legis/2011_12/fulltext/hb386.htmLegislation passed a few weeks ago in the state of Georgia that may make you consider whether it is a good time to buy a car this year in 2012 or wait until after March 1st, 2013.
Among its many components, HB 386 eliminates both the sales tax and the "birthday tax" (the annual ad valorem vehicle property tax), on cars, trucks and vans.
Replacing these taxes is a one-time "title fee" on new or used vehicles equal to 6.5 percent of the car's value. All vehicles purchased after March 1, 2013 will use the new title fee system.
In Fulton County, for example, the current sales tax rate is 6%; so, a vehicle purchased after March 1, 2013 will pay a one-time "title fee" of 6.5% instead and NEVER pay the yearly ad valorem tax for as long as you own your car, truck, or van. Eventually that Title tax will climb to 7%.
For most, waiting to purchase a new car will likely be the best route to go if you can hold out until next year especially if you buy from a dealer. If you are thinking about purchasing the car from another individual, you may want to go ahead and do that here in 2012. Here's why . . . Car dealers have long complained that people who buy cars from other individuals in Georgia don't pay sales taxes on the purchase. Now, anyone buying a car would have to pay the title fees. This would allow the state to capture fees from individuals who sell their cars to other individuals. The only work around in the proposal is a transfer between immediate family members which would be subject to one-half of one percent.
So, figure (x) which is the currect tax rate within your county of residence and multiply that against the value of what the state considers your junk is worth...
- no annual Ad Valorum tax on NEW vehicles- thats going to cut a huge chunk of tax money out of the counties pocket...guess where they'll have to make up the shortfall? Higher taxes elsewhere....(metal tags)
from what Im hearing, if your going to keep your old junk- your going to pay Ad Valorum every year-
if you go NEW- one time fee, then the tag only( metal plate/not sticker) - there will be a way to transfer over to the new system-
Topic: New GA Title Fee Tax on all Auto Sales, Dealer and Private (Read 1651 times)
