Is the Georgia ad valorem taxes on cars (for new residents) unconstitutional? (Atlanta: 2014, leasing)

[ncoflin]

I am just now finding out about this. I am a recent graduate with just a so-so job in the human services field looking to relocate to Georgia. My car was bought less than a year ago brand new in my home state of Virginia. I didn't budget for this. Sure if I stay for four years I'll come out ahead but that's a big if. This is so unfair! If my student loans weren't hard enough. Shame on Georgia. Talk about kicking new graduates looking to move to your state in the teeth. I think I am just keeping my registration in my home state for as long as possible with my parents address. I cannot afford this in cash!!!! I am dealing with all the other normal expenses of moving. Is there any push to fix this???

[midgeorgiaman]

Originally Posted by ncoflin

I am just now finding out about this. I am a recent graduate with just a so-so job in the human services field looking to relocate to Georgia. My car was bought less than a year ago brand new in my home state of Virginia. I didn't budget for this. Sure if I stay for four years I'll come out ahead but that's a big if. This is so unfair! If my student loans weren't hard enough. Shame on Georgia. Talk about kicking new graduates looking to move to your state in the teeth. I think I am just keeping my registration in my home state for as long as possible with my parents address. I cannot afford this in cash!!!! I am dealing with all the other normal expenses of moving. Is there any push to fix this???

There is no push to change it. This law is not going anywhere.

[Brian_M]

Originally Posted by ncoflin

I think I am just keeping my registration in my home state for as long as possible with my parents address.... Is there any push to fix this???

Careful with skipping registration/becoming a state resident as you may find yourself paying the tax AND fines/court costs. If there's one thing I go through frequently, it's random roadblocks for license checks (3~4 a year for the past 3 years now). I've also seen a large number of people reporting out of state plates on various GA forums... you Might escape notice due to age/looking like a college student, but maybe not depending on if you're going to live near a college.

There's no push to "fix" this because the auto union paid off the politicians to put this in place. The fight to keep it from happening was weak (I moved after the majority of the fight was done, so I may have missed some), and it seems that most people don't care enough to do more than grumble.


You have one real option that may help you out, buying a car in GA. Go through a dealer (either with cash after selling yours in VA, or using it as a trade-in) where they wrap the tax and title into the new loan, or sell yours and use the cash (if you have any equity.. btw, a new car While in school??? not the best of decisions) to buy something cheaper and using the extra cash to cover the required fees.

Or, you could not move to GA. I actually endorse this option the most. If you go this route, PLEASE send a note to the Gov letting him know that you decided not to move to GA because of the draconian law.

The bottom line is that it's never a wise move to break a law. Speaking as someone who broke their fair share of vehicle and traffic laws in his 20's, I know it cost me at least $10k between all the different fines, court costs, towing/storage fees, etc... and landed me in jail for a week. That's not even considering the time lost dealing with everything, being left standing on the side of the road miles from where you need to be (and that was before cell phones). It may hurt to pay the fees to be legal, but you won't flinch every time you see a cop and wonder if that's the time you're going to get busted.

[ncoflin]

Appreciate the advice. For the record I got the car after graduating from school and getting a job.

This law does not leave me with a good first impression of Georgia at all though.

[bellhead]

Use a LLC, you can incorporate one for under $800, and pick a state that is more tax friendly for vehicles. Ohio for example. If you purchase your car outright just title the car under the LLC and you are good to go.

[OneDawg]

Originally Posted by bellhead

Use a LLC, you can incorporate one for under $800, and pick a state that is more tax friendly for vehicles. Ohio for example. If you purchase your car outright just title the car under the LLC and you are good to go.

Missoula, MT rv dealers have been running that scam for many years to avoid sale taxes and ad-valorem taxes in other states. What they do is set up a MT LLC - then you put all vehicles, boats, aircraft and homes into it. What they fail to mention is your licenses must also be changed to that state - which has one of the highest personal and corporate income tax. So you gain on one end and lose it on the other. I watched it unfold - as Chips would pull rv's over for minor infractions - and hand out expensive tickets for not having registered the vehicles legally in California.

[OneDawg]

Originally Posted by ncoflin

Appreciate the advice. For the record I got the car after graduating from school and getting a job. This law does not leave me with a good first impression of Georgia at all though.

You pay the tax and live the easy life here. Don't sweat the small stuff.

[Army Nightingale]

How does one go about having this law declared unconstitutional? It is entirely unfair to newcomers to Georgia and definitely a surprise to those employees who have transfered here. Certainly the sales tax was paid in another state it would seem fair to at least credit the owner for paying g tax already. It seems like the ""birthday tax" would be more equitable for newcomers so the TAVT could be paid over time. Also why would the tax NOT be eligible for tax deduction on Federal or state income, when the annual ad valorem can be taken as an itemized deduction?

[Brian_M]

Questions for a lawyer who will gladly take all the money you want to throw at it.

If you're grumbling about the cost of this tax, then I doubt you have the funds needed to well and truly do anything productive. You'd have to outspend the Auto Dealers lobby (who got it in position to begin with), I wouldn't be surprised if it's cost in the tens of millions of dollars range.

But you just wanted to vent, I get that. Yes, it sucks, I wish more people knew about it and simply sent messages to the GA Gov telling them explicitly why they weren't moving to GA, and then Didn't move to GA. My wife and I are in the process of leaving, you can bet I'll send that letter myself as it killed my main source of income (motorcycle mechanic, I bought used bikes that were usually not running/in pieces and refurbished them for resale until the Gov started wanting hundreds of dollars where it had previously been tens and killed all potential profit).

[Army Nightingale]

Originally Posted by OneDawg

You pay the tax and live the easy life here. Don't sweat the small stuff.

How cruel to answer that way. For me it would be small stuff but for younger people just moving here it is a deal breaker. I have family who are now searching for jobs in another state after having just moved back.. So I guess the Georgia Realtors were also behind the tax. Also how many times can the state grab more money from the resale of the same car?