I don't know all the details of House Bill 480 that was passed by the Georgia state House, and now waits for Senate action. The bill would eliminate automobiles' yearly ad valorem tax that is due on the owner's birthday, and replace it with a one-time title fee of 7 percent of the vehicle's purchase price, not to exceed $2,000.
It seems to me that the lump-sum $2,000 tax should really slow down auto sales. With the condition of our economy, I feel this is another tax we do not need. Most of the current tax you pay when you re-register each year goes to the county. Where do they go to replace that tax money, since the state will apparently keep the new tax? Property owners will naturally be stuck with the bill.
Our House leaders hail it as a tax break! A tax break for who? Not the property taxpayer. On top of that, I believe they intend to tax "casual" car sales when purchased, so if you sell your car to an individual they better be prepared to pay the "purchase" tax.
I hope the Senate has better sense than the House and rejects this bill.
Don Plueger
Augusta
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Can you say "flat tax"? This will be the common practice if we are stupid enough to actually enact that program.
http://www.fairtax.org/site. Here you go. Please at least read about it then show us how dumb you are.
30% tax on new cars. That'll help sales. If this bill passes, if you buy a car for $28,570 , you get to pay the same amount of tax as someone who buys a $90,000 Lexus. You also have to charge the tax if you sell a car as a private individual. Great.
7% of the purchas price is not $2,000 unless you buy a vary expensive luxury car. Yea I know they are still teaching new math in school.
14putt I am smart enough with out asking Bortz to know that the guys at AIG would not pay a dime for their bonuses until they start taking it out of the bank to buy groceries. Thats the idiocy of the proposal. Further, your buddy Rush with an income of over $30 Mil a year would pay no income tax on the millions he puts in the bank until they are withdrawn and spent in the USA. I will admit I don't know how he would be taxed if he or anyone else transfered his money to Europe and then spent it. My point in my posting was this, the state dosen't care what you pay for federal, they will just add taxes and fees to make up for what the feds have always given them.
ANOTHER 7%? Hell, in GA, you already pay the full 7% sales tax. Tack 14% costs to a car and see that business dry up.
This is a bad idea, especially for those who like to trade cars every 3 or 4 years. Egan is wrong and TechLover is correct. Cars under $28,571 pay 7% of the sale price in the new tax. Cars over $28,571 pay $2,000 tax. This "new" tax will send money to the state, and the counties will have to give up the old ad valorem "tag" tax. So the counties will naturally want to raise real estate taxes to make up for the shortfall.
The surest way to prolong a recession is to raise taxes.
The 7% replaces the sales tax. You pay this when you register the car. This is great for new car buyers because you pay 7% instead of the sales tax and then you avoid ad valorem as long as you own the car.
Problem is this doesn't start till next year and if it passes.
this really goes after private party sales. right now no tax is collected.
I think it's a good idea. problem is I want to purchase now. but if I did then I pay 6% sales tax ($2400 for 40k car) and ad valorem every year. If this passes then I wait till next year and pay 7% but capped at $2000, save $400 and save ad valorem every year.
Anyone know when this goes to the Senate?
The letter writer says the 7% title transfer fee replaces the AD VALOREM tax, not the SALES TAX. But Mik1999 says it replaces the SALES TAX. I don't know who is correct because the newspaper did not have an article reporting the details of the bill. I cannot imagine the title transfer fee (7% or $2,000, whichever is less) would be replacing the sales tax AND eliminating the ad valorem tax at the same time.