Ga new title tax law hurts so good...

[JamesG]

But its not going to. All it will do is create a blackmarket in "floating titles" and stifle small dealer and private party older model car sales/trading. Lower income people and those on the fence about buying/trading up either new or used will just keep their old cars. We took another step down the rung of a free market, and you didn't even notice (see my earlier post). The dealers and their politicians can go eat ****.

 

[8675309]

ONLY if you are buying and selling frequently. Yes, I like it. My STI, and wife's RAV4 will be MUCH cheaper in the long run.

I dont get it, you use to pay sales tax AND ad valorem every year. Now, you just pay TAVT and that is it. How is that a bad deal unless you buying outside of a dealer?

Lets say you have a $30K car @ 7%, that is $2,100 in TAVT....and your done.

Old way:

$30K car @ 7% sales tax(Bartow County) + ad valorem:

Lets say the state values your car at that exact $30K too. Now we calculate ad valorem:

30,000 x 0.4 = 12,000, now we calculate the mill rate of 25.88 (Bartow as an example) and divide by 1,000. Take that .02588 and multiply it by 12,000. Your ad valorem would have been $310.56 the first go around

Soooooo....

$2,100 in sales tax + $310.56 when I need to get my tag renewed. Lets say you keep that car 4 years and its value drops 10% each time from its new valuation, that is $1271.77 in addition to the $2,100 in sales tax you would have paid.$3371.77 total.

Yes, I like the new way.

They are getting the money from private sales largely in part because of all the "flippers". This was to help "boost" dealer business by closing the tax "loophole-ish" and making it more appealing to purchase new/used from a dealer.

^^^this--you're a smart guy but you just
made my point.

 

[jimipanic]

Why do we pay based on the valuation and not what we paid for the vehicle? That's the part I think's horse ****!
I bought a vehicle from an individual who paid $1700 in taxes and two years later, I had to pay $1500 on the same vehicle! That's them valuing it at 7k more than I actually paid for it and I had the bank papers and bos from the seller.

Folks often would fill out a lower amount paid then what was actually paid. And many other points have been pointed out

 

[sniper22]

Folks often would fill out a lower amount paid then what was actually paid. And many other points have been pointed out

Yeah I know it can be cheated, but I have the bos, bank loan contract, and a copy of the checks.. either way, yesterday is gone!

 

[letusbuyyourcar]

I saw a man literally crying at the tag office when he found out about how things are done now.
He had apparently just bought a nearly new Jaguar from a private individual.
He begged and pleaded and then left crying telling them that he didn't have enough money to pay it.

Well I don't wanna sound hateful butnif he didn't have the money to pay the tax then he shouldn't have bought the car. I say that for one important reason and that is if he don't have the money to register it then he don't have the money to maintain or repair it. I have yet to own a Jaguar, Rover,BMW etc. And I have drooled over an XJS since I was a kid. They come cheap used too. You know why? Because the cars mentioned above except for higher end BMWs have little resale value. Jags and Rovers have poor resale value because their mechanical reputation is widely known. When I worked at new/used lots there were a couple of high interest secondary lenders that sent a memo out to the lots that plainly estates that the would NOT accept any deals on Jag,Rover,BMW,Saab,or even Volvo. The reason was that they knew that the people they were financing didn't have the money or ability to fix even small problems on those cars.

 

[palmettomoon]

Are there more new/used car sales around tax time? I noticed in Middle Georgia that there seems to be a BOOM in temp tags on cars around the end of Q1 of each year, along with these signs popping up like mushrooms at every street corner:

 

[albatros43]

ONLY if you are buying and selling frequently. Yes, I like it. My STI, and wife's RAV4 will be MUCH cheaper in the long run.

I dont get it, you use to pay sales tax AND ad valorem every year. Now, you just pay TAVT and that is it. How is that a bad deal unless you buying outside of a dealer?

Lets say you have a $30K car @ 7%, that is $2,100 in TAVT....and your done.

Old way:

$30K car @ 7% sales tax(Bartow County) + ad valorem:

Lets say the state values your car at that exact $30K too. Now we calculate ad valorem:

30,000 x 0.4 = 12,000, now we calculate the mill rate of 25.88 (Bartow as an example) and divide by 1,000. Take that .02588 and multiply it by 12,000. Your ad valorem would have been $310.56 the first go around

Soooooo....

$2,100 in sales tax + $310.56 when I need to get my tag renewed. Lets say you keep that car 4 years and its value drops 10% each time from its new valuation, that is $1271.77 in addition to the $2,100 in sales tax you would have paid.$3371.77 total.

Yes, I like the new way.

They are getting the money from private sales largely in part because of all the "flippers". This was to help "boost" dealer business by closing the tax "loophole-ish" and making it more appealing to purchase new/used from a dealer.

Some good points have been made on the used car market, and I can see how it sucks for that. I buy new cars and drive them for over 10 years. When I first learned about the TAVT, I honestly didn't believe it. If you buy new, they basically swapped sales tax for the TAVT and you're done. I actually bought a new car in 2012 before TAVT was in effect, and I had the option to "opt-in" to the TAVT. I went to the tag office with my dealer paperwork. Since my sales tax amount was the same or more than the TAVT was, I didn't have to pay anything else and now I'm on the TAVT system and NEVER have to pay ad-valorem. Compare that to the ad-valorem I still have to pay on my 2001 vehicle.

One difference is you can't deduct TAVT from your taxes. You used to be able to deduct the sales tax and ad-valorem. You still come out paying far less in TAVT for a new car purchase.

 

[YOTESHOOTER]

Automobile Dealers lobbied for this because private sales did not have to pay sales tax and another big ad valorem tax , double taxation. However the state values the cars/trucks more than you can sell them for, just wait for the new taxes on homes, RV's, Atv's, Utv's.

Once they see how profitable this is, then its private other sales also (gun), That's what the BOSTON TEA PARTY , was all about!!

just rent or lease, then forget it...

 

[wsbrown]

Private sale numbers won't be affected and the legislators know that. There will always be people that can't afford or are unwilling to pay the ridiculous prices of new vehicles. Our dear old Republican friends in Atlanta just saw it as an opportunity to take more wool from the sheep.

 

[sniper22]

You can only push a bear so far up a hill before he decides he's had enough and turns on you.