House backs car tax change

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ATLANTA --- The Georgia House swiftly adopted a string of tax breaks Thursday, during a critical day in the Legislature to pass dozens of bills or toss them aside for the year.

House lawmakers voted 133-39 to approve the latest attempt to eliminate the so-called birthday tax on cars, an annual property tax due the month of a resident's birthday. Instead, residents would pay a one-time fee of up to $2,000 or 7 percent of the car's value -- whichever is less -- when they buy a vehicle.

The House also overwhelmingly approved a package of tax breaks that Republican sponsors said would help create jobs amid the economic downturn.

Thursday was the the Legislature's make-or-break crossover day, the 30th day in the 40-day session, when bills must pass at least one chamber or be thrown out until next year.

The chamber approved 164-4 a plan that Republican sponsors say could help create jobs in Georgia by giving companies a $500 credit toward the unemployment insurance tax and a $2,400 income tax credit for each new employee they hire and retain for at least two years. It also launches a one-year "new business tax holiday" waiving a $100 state filing fee for new registrations.

House lawmakers quickly followed up with a unanimous vote to adopt a plan to eliminate a $2.5 million ad valorem tax on inventory that critics say has forced businesses to shift distribution centers outside the state. All those measures now go to the Senate.

The car tax measure is expected to raise more than $100 million for Georgia's trauma care network.

HOW THEY VOTED

Here is how local legislators voted on House Bill 480, which would replace the annual car tax with a one-time $2,000 tax due at purchase. The bill passed the House 133-39:

Anderson-R -- Y

Davis-D -- Y

Frazier-D -- N

Harbin-R -- Y

Howard-D -- N

Hudson-D -- N

Jackson-D -- N

Murphy-D -- Y

Sims-R -- Y

Comments

user

I have not read the bill; however, this article portrays the bill as not an elimination of the tax as it states. While it may be difficult for most to come up with the money to pay their yearly $200-$500 car tag bill, I would think that it would certainly be more difficult to come up with the additional 7% or $2,000 at the time of purchase. Further, while I consider myself a conservative, I must say that this appears to be a thinly veiled attempt to award a tax break to the wealthy. Under the provisions of this bill, the most anyone would pay would $2,000. That equates roughly to 7% of a $29,000 vehicle. Therefore, someone who purchases a $70,000 car would pay no more than the person who purchases a $29,000 car.

NEone

And if you only live in GA for a few years, is there a rebate since you have paid the lifetime tax?

noway

Tax breaks are always directed toward the rich, but that's a very good point by ?. The tax unfairly taxes those with less money and gives a break to those with more money. Thank you republicans. I'm all for tax breaks, but make them equal and fair - this isn't fair.

noway

That new tax also isn't going to help the fledgling car sales market. This is a horrible time to add a $2,000 tax to a new car when new car sales are in the tank. Way to "stimulate" the economy. Just ridiculous.

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