Title and Valorem tax!

[dakota port]

Those who like to buy and sell frequently will take it in the butt though.

that is my thoughts on it, i try to drive my cars until the wheels are falling off and the engine needs replaced.

i was gonna buy a minivan and sell my car but in order to make up my $500 one time tax i have to keep my car at least 6 years now

 

[Shovelhead]

You can take those training wheels off the back. (Ride safe)

 

[Wallace's]

Are you saying you only paid the title TAVT and no sales tax? If so I didn't realize that was how it worked. I was under the impression you now paid both or roughly 13-14% tax total.

Yes, TAVT replaces the sales tax! I still don't think its a bad thing. If you flip cars on the side(which I do too), its not that bad unless you flip $10k-$15k+ cars....

 

[albatros43]

Are you saying you only paid the title TAVT and no sales tax? If so I didn't realize that was how it worked. I was under the impression you now paid both or roughly 13-14% tax total.

TAVT replaces sales tax. I only see it as a negative on private sales. If you're buying from a dealer, they've basically swapped TAVT for sales tax and you don't pay Ad Valorem again.

 

[Wallace's]

And the other plus to it is if you trade with me (at a dealership) you deduct the price of your trade from the cost of my car and pay the 6.75% on the net difference. So buying a $40K car and trading a $20K car in, you'll pay 6.75% of $20K not $40K.

bingo bango! I still dont see why so many hate it???? Your saving money in the long run!!

 

[Patryn]

bingo bango! I still dont see why so many hate it???? Your saving money in the long run!!

Agreed

 

[scottypp]

Are you saying you only paid the title TAVT and no sales tax? If so I didn't realize that was how it worked. I was under the impression you now paid both or roughly 13-14% tax total.

That's correct- most vehicles are now exempt from sales/use tax. Campers, trailers, etc still are subject to sales tax, but regular vehicle sales are exempt from sales tax.

It's simple math. If you do away with a tax, for the State, that is a cut in pay. You gotta replace that cut in pay somehow. So, what GA did, was eliminate the sales tax, but open up the TAVT to "casual" sales. Car dealer associations have been asking for that for YEARS ! They claimed it was unfair for the dealer to collect sales tax, but selling one out of your back yard - no tax.

Like any other system, there are workarounds, scapegoats and those that will try to beat it. That's not new, look at the Earned Income Credit, WIC, SNAP, Unemployment, EBT, undocumented workers, and on and on.. - all are eaten up with fraud.,

 

[Wallace's]

TAVT replaces sales tax. I only see it as a negative on private sales. If you're buying from a dealer, they've basically swapped TAVT for sales tax and you don't pay Ad Valorem again.

I dont even see it as that. If your going to keep the car for 7-10 years, its still cheaper in the long run. Its only "hurting" those who buy and sell from private individuals over every year.....

 

[Wallace's]

That's correct- most vehicles are now exempt from sales/use tax. Campers, trailers, etc still are subject to sales tax, but regular vehicle sales are exempt from sales tax.

It's simple math. If you do away with a tax, for the State, that is a cut in pay. You gotta replace that cut in pay somehow. So, what GA did, was eliminate the sales tax, but open up the TAVT to "casual" sales. Car dealer associations have been asking for that for YEARS ! They claimed it was unfair for the dealer to collect sales tax, but selling one out of your back yard - no tax.

Like any other system, there are workarounds, scapegoats and those that will try to beat it. That's not new, look at the Earned Income Credit, WIC, SNAP, Unemployment, EBT, undocumented workers, and on and on.. - all are eaten up with fraud.,

These 2 were the biggest reason for it. It was suppose to help "boost" new car sales too, which maybe in the smallest since it did, but I can assure you the State is coming out much better on this deal. Most new car buyers only keep their car 2-4 years now anyway. This will help the state generate more revenue...

 

[Boz1911]

Yes, TAVT replaces the sales tax! I still don't think its a bad thing. If you flip cars on the side(which I do too), its not that bad unless you flip $10k-$15k+ cars....

Thanks, I did not realize that. Since I do tend to keep cars for a while that will be to my advantage on my next new vehicle. I was wondering why people weren't pitching a fit over it. I also flip a car here and there but like you they are usually on the cheap side.