No Ad Valorem Tax 2013 - opt-in for out of state purchase?? (sales, 2014)

[GAtownBound]

Good afternoon,

I was visiting family in Florida over the weekend and found a car that I'd like to buy used from a dealer. Has all that I am looking for and just so happens to be in Florida (can't find this car used in GA today). I understand car buyers can opt-in to the new 'no ad valorem' tax world if they buy a car between 1/1/2012 and 2/28/2013. However, I can't tell whether that opt-in ONLY applies to cars bought in GA?

The law itself states:

(10) The owner of any motor vehicle purchased in this state for which a title was issued
in this state on or after January 1, 2012, and prior to March 1, 2013, shall be authorized
to opt in to the provisions of this subsection at any time prior to January 1, 2014, upon
compliance with the following requirements.
So that says "purchased in this state" as part of the opt-in. Anyone know if out of state purchases can opt-in as well if you pay up on all the fees - or if this was a very specific limitation - in-state purchases only?
I have tried calling the 404-730-6100 number for the fulton car tax line but have been on hold endlessly!
Anyone have any insights? Appreciate any guidance!

[JPD]

I'm guessing it's in-state purchases only. Otherwise, the state gets nothing out of the deal.

[GAtownBound]

shoot. bummer. Well, happy to hear from anyone who happened to pull this off.

[westau]

I don't know that it is automatically a good deal on a used car compared to it being a great deal and a no brainer on a new car since they were already paying sales tax on new cars.

[GAtownBound]

I guess this is a used car from a dealer and would have taxes paid too? That's what the mocked up pricing indicated at the dealer (think it was about 4% fl sales tax). If you pay fl sales tax on the used car, do you have to pay the difference to GA tax levels when you register in state? At that point, I'm paid up to current ga sales tax levels and would love that work to kill the ad valorem.

[GAtownBound]

Finally found an email address (motorvehicleinquiry@DOR.GA.GOV) and asked.
Here's the thinking I got back, which seems to indicate it would be okay.
I can print out the help desk supervisor's reply here in case of dispute I suppose! Gets confusing.

On or after March 1, 2013 the opt-in will be available (all taxes must be paid up to that point if due). The Title fee will be 6.5% of the vehicle fair market value and any previously paid state or county taxes can be used to offset this 6.5% amount. In other words if you paid 5% Florida sales tax at purchase and 2% sales tax in Georgia, then only the 2% amount can be used to offset the 6.5%. And if the ad valorem tax is due before March 1 (usually around 1.5%), then this also is used to offset the 6.5% new title tax. Total offset cannot be more than 100% of the new title tax.


http://onlinemvd.dor.ga.gov/Tap/faqs.aspx
http://onlinemvd.dor.ga.gov/Tap/welcome.aspx

[red92s]

Originally Posted by GAtownBound

I guess this is a used car from a dealer and would have taxes paid too? That's what the mocked up pricing indicated at the dealer (think it was about 4% fl sales tax). If you pay fl sales tax on the used car, do you have to pay the difference to GA tax levels when you register in state? At that point, I'm paid up to current ga sales tax levels and would love that work to kill the ad valorem.

Generally the out of state dealer does not charge any sales tax, and when you register it in GA you will pay sales tax on the higher of the sales price or book value. Thats the way it worked when I bought a car in TN in 2007.

[GAtownBound]

Or not (for lasting accuracy):

I’m glad you pointed this out to me. While the new law will apply to purchases from any state. The “opt-in” portion of law does specifically address only vehicles purchased in Georgia. So an out of state purchase, regardless of the taxes paid will not be eligible to opt-in. You could get into the new law by transferring ownership to another family member, but you would be responsible for the full 6.5% TAVT.

(10) The owner of any motor vehicle purchased in this state for which a title was issued
in this state on or after January 1, 2012, and prior to March 1, 2013, shall be authorized
to opt in to the provisions of this subsection at any time prior to January 1, 2014, upon
compliance with the following requirements:

[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.

[joey86]

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.

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.