New sales tax

[howl]

Yes, it's better if you buy from a dealership and keep your vehicle a few years. If you cannot afford a new car or a used car plus the new tax, but could have afforded a cheap used car you're getting screwed. This will push people who were living within their means to go into debt at a dealership. All the profit goes to dealerships and government.

They are projecting a revenue increase starting around 72 million and rising to over 500 million by 2015.

The bill was HB 386. Scroll down here for an explanation: http://gbpi.org/wp-content/uploads/2012/03/Bill-Analysis-HB-386.pdf

Finding your representatives is easy on votesmart.org

And here's how your official voted: http://www.legis.ga.gov/Legislation/en-US/Vote.aspx?VoteID=9058

 

[JDG.]

It also means I dont have to worry about trading in for tax credit so I can priv. Party sell my vehicle for more money rhen buy what ever I want. I like it better this way, I dont like shelling out over 400$ to the state on my birthday. Happy birthday to them!

 

[MallNinja Team 6]

Its a vehicle registration fee. Calm down now, do some research. Its currently 6% but does away with the yearly ad valorem tax. Its better for people who keep their vehicles over 1 year.

This was pushed through by the GA auto dealers association. It predominantly benefits used car retail sales. If someone purchases a $10k used car from a private party, they now have to pay $600 to get the tag. Previously, they would have only had to pay this if purchasing from a licensed auto dealer. From a private party, they would have only had to pay $80-$130 for a tag (dependent upon the tax valuation of the vehicle). To anyone who likes to buy\sell\trade cars a lot, this is a hugely negative change.

 

[haole396]

Had something similar to this when I lived in Michigan. The tax was collected when you registered your car with the bill of sale from the private transaction. Amazing how many $125 cars I bought

 

[JDG.]

This was pushed through by the GA auto dealers association. It predominantly benefits used car retail sales. If someone purchases a $10k used car from a private party, they now have to pay $600 to get the tag. Previously, they would have only had to pay this if purchasing from a licensed auto dealer. From a private party, they would have only had to pay $80-$130 for a tag (dependent upon the tax valuation of the vehicle). To anyone who likes to buy\sell\trade cars a lot, this is a hugely negative change.

Yes if you do many purchases you will be getting the brown end of the stick. I lpan to get a car in march so I dont have to pay ad valorem again. 3 vehicles a year on my Bday sucks a big nugget. Really I dont like either option but I think this is the lesser of two evils for most people.

Its really dumb to pay taxes every year on something you already own....

 

[Lionheart]

Had something similar to this when I lived in Michigan. The tax was collected when you registered your car with the bill of sale from the private transaction. Amazing how many $125 cars I bought

I'll be buying some of them $100 cars too...I learned about this tax today from a used car dealer who was grinning like a possum eating briars about the change. He knows that I like to buy a new truck every year or two and that I usually buy from individuals to avoid sales taxes. What you wanna bet the "fees" on your annual car tag go up so that in the end you are paying 7% up front and still paying ad valorem taxes under a new name? And that same bill is gonna tax all Internet purchases!!!

 

[Lionheart]

Think of it this way....

Last January you found a great deal on eBay for a $40,000 truck from a private individual...so no sales tax and your ad valorem tax on your tag that came down on your birthday, say in July, was around $500...(ouch!)...but since you bought from private individual you still saved $2,800 in sales tax back in January. Really more than that because the seller sold you the truck for $3,000 less than a dealer price! So your way ahead because that ad valorem tax was due even if you had bought the truck from a dealer and paid the $2,800 sales tax, right?

So, two years later you want to sell the truck on eBay and buy another clean, low mileage truck from an individual. But now the buyer knows ( or is shocked to find out at tag office) that when they buy truck from you they will pay 7% of purchase price JUST TO GET A TAG. I wonder how many of them won't have the money to buy the tag? Or how many will lie or forge bill of sale at lower price to pay less tax? Bottom line is that the individual's advantage over a car dealer is gone and you won't be able to sell your truck because you can't finance the sales tax in with the vehicle like the dealer. It will force you to consider trading it in to dealer....and we all know the dealer is going to give you retail price on your trade-in right? And even if you do sell it privately you will then pay another $2,800 in sales tax when you get your tag on your slightly used $40,000 truck you buy from an individual!!

Dealers are laughing all the way to the bank on this one! So is the State.... And they sell you on the law by "celebrating the end of the birthday tax". Come on people you are smarter than this! Well....some of you.

So the question is, who really benefits the most out of this new law...you the private individual, the government or car dealers ?

In the scenario above you, the consumer, will pay $5,600 in sales taxes on the two trucks you bought from two individuals who had ALREADY paid more than that, say $7,000, on the trucks when they bought them new from the dealer. So whether you are the fool (or rich guy who can afford it and by god this is America so let him do it!)who likes a new truck every year....or the one who likes to buy low mileage used trucks and sell them before they go out of warranty ( this is usually much more practical)...either way the government wins because they get sales tax TWICE on the same truck.....maybe in the same year depending on how long original owner keeps it!

Gov't is (as they say on DD) happy, happy, happy.
Car dealers are happy, happy, happy.
You, the consumer trying to save money by buying used trucks and turning them over before warranty runs out ....well, you are screwed, screwed, screwed!!!

Under existing law you could buy a low mileage truck every couple of years and save at least $5 or $6k in sales taxes by buying from individuals.... Not counting how much you could save by buy getting a better price from the private party vs dealer . Two years of tags with ad valorem tax might cost you $1K over the same period? Is it sinking in yet?

But some will point out the great pleasure all of us bargain hunters are missing by buying from the privacy of our homes on eBay .....that joyful three or four hours of haggling with a slimy salesman who keeps running back to the boss for a new "deal" on your truck.

Personally I hope it turns into prohibition all over again and the price of used trucks between private parties goes to $125 like it did in Michigan...

I'll sell you my truck for $125.... But I want $38,975 for hubcaps in a separate transaction...

Sorry for venting, some of y'all thinking this was ok tripped my trigger!

 

[diacnik]

Good post. I doubt the state will let us buy $10K trucks for $125 - I am sure theywill determine the proper sale value for tax purposes, and will pick the higher of the reported sale price or the average used vehicle value (also determined by them). More taxes, more government spending, out of touch government leaders who don't care, but at least the president got a much needed vacation...he only gets those every three weeks just like us.

 

[georgiabow]

Its really dumb to pay taxes every year on something you already own....

i get into this argument every year at the tag office. i ask them what is the point of all of this, and they say that you have to pay taxes on the vehicle. i tell them that i paid taxes on the car when i bought it. it usually ends with me telling them where they can go while im walking out the door.

 

[roundhouse]

Its a vehicle registration fee. Calm down now, do some research. Its currently 6% but does away with the yearly ad valorem tax. Its better for people who keep their vehicles over 1 year.

Bout 2 months ago I bought a non running 15 yr old vehicle for cheap, $10 and hauling it off, no plans to drive it, not sure if I wanna part it out, take it to the crusher or fix it, so I didnt get ins or a tag, but I did change the title to my name, just got a letter from the state demanding 6% sales tax. why didnt they charge me when I changed the title?

I thought this didnt kick in till March???????

I didnt get a Bill of sale, but I do have a copy of the cancelled check, guess I will send that back with 60 cents tax.

the stealerships gotta be loving this.
wonder how much bribe money, umm I mean campaign contributions they had to spend to get this?

and how does this work if you do a trade? you pay the tax on the full price?
or just the difference between the old and new vehicle?

The last Time GA tried the private party sales tax, it got shot down by the courts, how is this one different?