I'm surprised more people aren't talking about this locally because it hasn't exactly been repealed. Here's the deal. Cars, used and new, bought from March 2012 on, will be assessed with no more than a %7 one time vehicle tax on the fair market of that vehicle. There will be no property(advalorem) tax on that vehicle as long as you own it. If you bought a vehicle before then and keep it, the previous tax policy will continue to apply to you indefinetly.
IIRC, you also no longer pay sales tax on the purchase of new vehicles from a dealership, it's included in the 7% one time tax.
That almost makes me want to buy a new car. I hate the "birthday tax" aka Ad Valorem. When did this pass? I expected to hear more about it when it did. I knew it was under consideration.
I read about it a few months back. Not sure if it passed then or if they were still discussing. I think this would be a strong boost for the automotive industry in GA. Much like longfury just stated, it makes purchasing a new vehicle that much more attractive
Not looking it up too lazy but he mentioned used as well. I am selling all my vehicles to my brother in law this weekend and buying them back next weekend.
Yeah, new and used cars will be included. Also, you are right about just the 7% "title tax" and no sales tax. I do wonder how the fair market value is determined. I never pay over $500 over dealer invoice(most of the time I am under).
it depends on how long you expect to keep your car. if you just bought a 30k market value car (not sale transaction price), then thats about $2100 in taxes. if you plan on keeping the car for X years, total up what you think the advalorem will be for those years, and if its less than $2100, you're good. If not, then take a second look on everything else if its a good deal to get anothe ride.
Wirelessly posted (Mozilla/5.0 (Linux; U; Android 2.3.7; en-us; ADR6400L Build/FRG83D; CyanogenMod-7.2.0) AppleWebKit/533.1 (KHTML, like Gecko) Version/4.0 Mobile Safari/533.1) I would be up for a pretend trade with ya Matt .
That's excellent news for those of us who recently ordered a BRZ :devil: and the fact that I just bought the miata April 2.
sell me your car for $10 then i'll sell you mine for the same $10 then we sell them back $10 each we pay grand total of $1.40 per vehicle
pretty sure if it's a private party sale, you have to pay the 7% tax based on the cars value (not what you purchased it for) when you register the vehicle. I think when I was originally reading about this, it was only applied to vehicles purchased through commercial dealers, not private party sales. However, I haven't seen anything on it in a couple months and can't confirm how the final bill was written.
you can deduct the ad valorem from the 7% title tax next year but who determines the fair market value?
im assuming the state will, just like they do now with the taxable values on your registration. even still drew, it would be worth doing to never have to pay that tax again on a yearly basis
assuming you own the vehicle for 7 years, yes. I believe that was the ROI for the consumer on passing this law. For people that flip vehicles every few years, you'll be hurt by this law.
true, which i can't remember what the longest i've kept a car was, maybe like 2yrs. but their tax values have been significantly low.
Are you forgetting that you won't pay sales tax as well? You will pay the 7% title tax then that is it, no more taxes. Unless something was changed since the March 25th article I read last night. http://www.11alive.com/news/article...hicles-in-Georgia-being-replaced-by-title-tax I paid 7% sales tax and will have to pay ad valorem every year. My ad valorem was $350 this year and will be near that for awhile. I would be paying the 7% no matter what(sales tax or title tax, same difference on the total price), but might as well not have to pay the yearly "birthday tax".
^^^ That's if you buy through a commercial dealer, though. Private party sales rarely ever incorporate sales tax
I have not seen anything that talks about private party sales. I am not even sure how they will work. I am sure details will come along before it goes into full effect next year.
it's coming. it's the whole reason they're doing it so they can recoup the loss of tax on private sales. Joe
An interesting twist for you. Consider that now no tax goes to the local community, it all goes to the state.
Thats lame.... I suppose this is to encourage more new car sales versus old. Last time that happened people were pouring junk into their engines to get them to blow up. lame.
its not that complicated. when you register the used car you just bought in your name, you pay the tax at the time you register it in your name, prolly at a tag office...
In Ohio it was always known you marked the car down for a lot less on the title so you didn't pay as much taxes.