U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Georgia > Atlanta
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 09-10-2015, 12:47 AM
 
Location: Georgia
130 posts, read 146,846 times
Reputation: 59

Advertisements

The switch on march 1,2013 from the advelorem tax to the title tax has done ABSOLUTELY nothing to help georgia's citizens, especially during a recession! The state "values" vehicles at a rate that is not realistic, and cannot be lowered beyond what the local desk clerk deems appropriate. This tax is hurting the economy of the state and needs to be replaced or removed! Why cannot the tax be based upon sales price, like other states? Why cant we simply have a basic flat tax for all vehicles, regardless of seller? WHY???? The "values" are so inflated that I have offered MANY times to sell the govt the vehicle for $1k less than what they value them at. EXAMPLE: You buy your neighbors 2013 year 250k mile work truck that has been running the road since it drove off the lot new, and has been beat to death cosmetically. You pay $8k for it, yet the state of Georgia feels its still worth $30k and wants to tax you 7% of that. Then you go and dispute the value with said vehicle in person, at the tag office, on the only day a month they allow. They can only lower the value MAYBE 10% after they read the asinine kbb and nada values, both of which are not accurate. EXAMPLE: a 2002 powerstroke ford truck with 50k miles is selling currently for over $25k every day, yet, nada,kbb, the state of georgia value it for peanuts ($5-$10k). WE NEED THIS TAX REMOVED AND REPLACED!!!
Reply With Quote Quick reply to this message

 
Old 09-10-2015, 12:48 AM
 
Location: Georgia
130 posts, read 146,846 times
Reputation: 59
$75k new diesel truck= $5250 in TAXES!!!
Reply With Quote Quick reply to this message
 
Old 09-10-2015, 12:50 AM
 
Location: Georgia
130 posts, read 146,846 times
Reputation: 59
If a vehicle is sold 15 times in a single year, the state collects taxes 15 TIMES on the same used vehicle which already paid taxes to the state when it was new!!!
Reply With Quote Quick reply to this message
 
Old 09-10-2015, 01:11 AM
 
Location: Atlanta
6,458 posts, read 7,285,724 times
Reputation: 4205
Ehh....

There are some people who have had some good gripes on the existing law depending on their situation, but I'm not convinced by this gripe just yet.

If you're getting a diesel truck that expensive, it would have previously had a larger annual ad valorem tax and a sales tax on it already. Since you're buying it new, there is a good chance you're actually saving money in the long run compared to the old system. If you're buying a truck that expensive, there is a good chance it will put a great deal or wear and tear on the roads too.

Also you're example is a bit extreme and rare at best... What truck at 250k miles is valued at $30k? (but can supposedly be found for $8k)


The problem you're going to face with valuations is there is always a different market price on cars depending on who the seller is. Private party sellers that don't have large expenses at marketing cars, like a dealership would, do not get top dollar. Dealers act as middle men where they buy low and can sell higher, but that comes with a huge business expense too. A private seller accepts that won't get market value for the car as if they were a dealer, but they don't lose as much than if they sold to a dealer or had to pay the expenses of marketing a car like a dealer could.

So to anyone trying to analyze the market this produces different valuations of the same car. So Georgia has established the Fair Market Value of the car to be the average between the wholesale value (low) and the retail value (high).

So if you buy the car from an individual, the seller can get more than wholesale in many cases and the buy can do much better than retail value. This means people buying between individuals in many cases will have a purchase price a small bit below the fair market value, but this doesn't make that valuation unfair. That exact same car would have likely been sold for more at a dealership. The valuation for tax purposes is the same regardless if it is sold by an individual, at a dealership, or in the wholesale market.
Reply With Quote Quick reply to this message
 
Old 09-10-2015, 01:16 AM
 
Location: Atlanta
6,458 posts, read 7,285,724 times
Reputation: 4205
Quote:
Originally Posted by southman View Post
If a vehicle is sold 15 times in a single year, the state collects taxes 15 TIMES on the same used vehicle which already paid taxes to the state when it was new!!!
When is a vehicle sold and registered 15 times in a year?

Also you are aware used cars use to have sales taxes at dealerships? In that regard, it isn't that different.
Reply With Quote Quick reply to this message
 
Old 09-10-2015, 01:34 AM
 
Location: Georgia
130 posts, read 146,846 times
Reputation: 59
Gov Nathan Deal is who allowed this to pass. IT FAILED 3 TIMES PRIOR. This law was passed to ONLY support car dealers and bring more cash into the states accounts. If somebody want to buy a different used car every month, why should they pay more to drive on the same roads as someone who keeps the same car for 50 years? If you buy a used pair of shoes at a yard sale, you dont pay tax on them, the tax was paid when they were sold as a new produced good. Someone please post why yard sale shoe sales are totally different than used car sales. Dont forget, GAS TAX, COUNTY SALES TAX, STATE SALES TAX, PROPERTY TAX.......
Reply With Quote Quick reply to this message
 
Old 09-10-2015, 01:37 AM
 
Location: Georgia
130 posts, read 146,846 times
Reputation: 59
This hurts non dealers and that is FACT. There is no trade in TAVT credit when a person sells their car privately and then buys another car privately! Who sponsored the bill? It surely was NOT private citizens of georgia. Why do taxpayers have to support car dealers choice of careers???
Reply With Quote Quick reply to this message
 
Old 09-10-2015, 02:07 AM
 
Location: NW Atlanta
5,009 posts, read 3,497,549 times
Reputation: 2653
This thread has potential.
Reply With Quote Quick reply to this message
 
Old 09-10-2015, 02:19 AM
 
Location: Atlanta
6,458 posts, read 7,285,724 times
Reputation: 4205
Southman, you are both raising some good points, while also being completely nonsensical in others.

You're harming your argument by bringing up ridiculous examples that do not apply to anyone really. No one trades their cars that much and to an extent as a matter of policy anyone person that does creates a huge strain on the government keeping track of all the changes and I truly think cars we drive on public roads should be registered property that is uniquely tagged to individual owners. Nonetheless we can't legislate all laws to cater to the rarest and uncommon of circumstances in all cases.

One thing you have conveniently forgotten though, is under the old system car dealers of used cars were forced to charge sales tax, while individuals got off free. It was an asymmetrically unfair, this new tax fixed that if anything and levels the playing field. However you do raise a good point regarding the trade-in value.

There is no county sales tax, state sales tax or property tax regarding car ownership in Georgia anymore.

This tax you are complaining about replaced them, that is why I previously hinted you are likely coming out ahead on your prior example of buy a new $75k car. You wouldn't have paid sales tax to the state or the counter and you do not have to pay an annual ad valorem tax. You pay a single 7% tax and come out ahead.

As much as I love comparing taxation on shoes to cars, please remember cars are different as they have a much larger government cost tied to their use and existence in our culture. We have always taxed cars in ways we do not tax... shoes. They have continual expenses to the public throughout the duration of their life, so the option is really to pay an annual tax or everyone pays a larger up front tax at purchase. Either way... everyone pays it, regardless of how they get their car (new, used, dealer, or private sell)
Reply With Quote Quick reply to this message
 
Old 09-10-2015, 04:53 AM
 
Location: Macon, GA
1,070 posts, read 1,464,436 times
Reputation: 1055
This is a law that was developed to pacify the dealerships who lobbied HARD for it and got their wish. It is great for those who keep their cars for a long time. It is not as great for those who change vehicles often. It is horrible for people moving to the state who already paid sales tax on their vehicle in another state. It is also not good for local governments who have to find another avenue to replace the tax income lost with annual ad valorem taxes ending.

The advantage to buying from a private party has been greatly reduced. Cash buyers including many lower income folks who often buy older used cars with cash have to come up with a sizeable extra chunk up front,

Some winners some losers, but the biggest winners were car dealerships which is fairly standard MO for the current governor and legislature. That is apparently what a majority of the voters want and that is what they got.

I keep my cars for a long time so I am an overall winner, but I am not happy with the way this went down as I cannot stand dealerships and one of the biggest carrots for avoiding them has been taken away. Also, when my mother moved to GA last year with a 2002 vehicle, she had to cough up over 700 bucks to tag her car here which is absurd and makes one curse their move to our state.

Anyway, this is the new normal and I suppose we will get used to it.

Last edited by midgeorgiaman; 09-10-2015 at 05:06 AM..
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Georgia > Atlanta
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top