No Ad Valorem Tax 2013 - opt-in for out of state purchase?? (lease, car tax)

[ATL Golfer]

Originally Posted by joey86

Yes, it does unfortunately. Unless it is purchased from family. I always bought from private parties too. I have always saved at least a third compared to dealer prices. I'm about done with cars though.

Interesting. Now the article today stating a GSU study shows taxpayers will be paying $140MM more in taxes with this new system.

They should look at eliminating tax on private party sales and make this more tax neutral if that GSU report is accurate.

Hopefully they fix the double tax on leasing as well before this becomes law.

[Mishap]

^The point of the law was to capture private party transaction revenue (raising more taxes) otherwise it wouldn't make up the gap from not charging ad valorem every year. This law was backed by the dealerships for this reason since it removes the PP advantage. The double tax on leasing will likely go away since a huge % of cars are leased these days and dealerships would hate life.

[cwkimbro]

Originally Posted by ATL Golfer

Interesting. Now the article today stating a GSU study shows taxpayers will be paying $140MM more in taxes with this new system.

They should look at eliminating tax on private party sales and make this more tax neutral if that GSU report is accurate.

Hopefully they fix the double tax on leasing as well before this becomes law.

What mishap said... you can't have both.

[cwkimbro]

Originally Posted by ATL Golfer

Question, so does this eliminate private party "tax free" sales? No matter who you buy it from, there is up front sales tax?

I always try to buy private party for this reason.

One thing to add....

Some people might not even realize it at first. They will pay the tax when they go into the tag office. A pretty large lump sum most aren't use to paying.

[onemanarmy]

Originally Posted by cwkimbro

One thing to add....

Some people might not even realize it at first. They will pay the tax when they go into the tag office. A pretty large lump sum most aren't use to paying.

I'm almost certain this is added into the price of the car and will most likely be financed. So there is not a seperate invoice to pay the tag office, it is paid by the dealer and included in the price of the car.

[PKCorey]

Originally Posted by onemanarmy

I'm almost certain this is added into the price of the car and will most likely be financed. So there is not a seperate invoice to pay the tag office, it is paid by the dealer and included in the price of the car.

cwkimbro was referring to private sales so you will need to have the cash up front to pay at the tag office.

[onemanarmy]

Originally Posted by PKCorey

cwkimbro was referring to private sales so you will have to the cash up front to pay at the tag office.

Ok, I see. Yeah, that could cause an inconvenience are worse, make everyone buy cars from dealerships.

[PKCorey]

Originally Posted by onemanarmy

Ok, I see. Yeah, that could cause an inconvenience are worse, make everyone buy cars from dealerships.

Hence why the dealer lobby was able to slip it into the new bill...

[Mishap]

Seems they already fixed it.

Car tax bill passes House with lease fix | www.ajc.com

The telling part of the article:

More than 30 percent of car transactions in Georgia are leases, nearly twice the national average.

[cwkimbro]

hmm... I wonder why we have twice the national average on leases