Georgia TAVT - any exceptions?

[Forhall]

Originally Posted by cwkimbro

That wouldn't be fair to people who buy.

You lease a car you're keeping it during the most expensive years.

Someone who buys a new car and 3 years later loses it, sells it, or moves out of state should pay as much as someone with a 3 year lease.

True, but nearly every other state only has you pay tax on the leased part. If you roll tax into the lease payment, you pay until you give it back, not the full value of tax for the whole car.

[patryuji]

Thanks for the over view.

We were in a bind on needing the second car and I didn't bother to check Georgia car registration FIRST. I thought about it later to just get an idea of the costs vs AZ.

It would have been a wonderful solution to just purchase the car in GA and have a lower overall tax bill!

The car, being a Toyota, won't depreciate very fast - a good problem to have in most cases. I may just do a 90 day temporary registration in AZ and still move to GA to avoid the first big AZ tax hit.

[markjames68]

Originally Posted by cwkimbro

This tax replaced that sales tax, but it also replaced another important common tax... the annual ad valorem tax. After you pay this tax, each subsequent year you only pay a single $20 tag fee.

Under the old system you would paid $300-$500/year for the first year of a car's life and it would gradually dwindle to $40-$50/year as the car is very old and not worth much. You no longer pay that in Georgia. This tax is a replacement of that system that is common in many other states. This is why there is no reciprocity. It is a replacement of that annual tax.

So if you only stay in Georgia for only two years, you will end up paying a bit more... but it isn't as much more as you might have thought given what you pay on the older annual tax. It is usually between 4-5 years things equal off.

The big problem with this tax is it is up-front sticker shocker for anyone that can't roll the value into a car purchase loan. That is what you are facing now.

I actually like this tax system, but I wish the state would change it in one way. Allow people moving into the state to not pay 50% over 2 years, but to consider 33.3% over 3 years or 25% over 4 years and allow them to not be liable for the rest if they no longer need to register the car (ie. move back out of state, car gets totaled, they buy a replacement, etc...)

Resurrecting this thread.

What sucks for out of state people moving to GA is when you have a leased vehicle late in the lease.

For example, I have a $60,000 vehicle, where lease payments add up to around $30,000 (numbers rounded). I'm in month 33 of a 39 month lease. Have paid sales taxes every month as part of the lease to FL.

GA will tax me approximately $2100 (better than the old law which would have been $4200!) for the privilege of driving a registered car in GA for less than 6 months. If it was much later it would have been cheaper to turn the car in early.

My wife has an even more expensive vehicle, but she's only in the first year of the lease so the sting is a bit less.

FYI for anyone going through this.

[ekman243]

[quote=markjames68;50793302]Resurrecting this thread.

What sucks for out of state people moving to GA is when you have a leased vehicle late in the lease.

For example, I have a $60,000 vehicle, where lease payments add up to around $30,000 (numbers rounded). I'm in month 33 of a 39 month lease. Have paid sales taxes every month as part of the lease to FL.

GA will tax me approximately $2100 (better than the old law which would have been $4200!) for the privilege of driving a registered car in GA for less than 6 months. If it was much later it would have been cheaper to turn the car in early.

My wife has an even more expensive vehicle, but she's only in the first year of the lease so the sting is a bit less.

FYI for anyone going through this.[/Q




Most newbies get stuck paying that $2100 because they are unaware of GA rules regarding vehicle registration and then it is too late to avoid it.

Those that know,would simply plan their move within 6 months of their out of state registration expiration, many people don't register their out of state vehicle in Georgia until their current plate expires, then lease or buy in Georgia, especially for expensive leased cars within a year of lease end

[AnsleyPark]

I feel your pain. I purchased a vehicle for my daughter when she was 17, but kept the vehicle titled in my name. She is 24 now, and for liability and other reasons, I transferred the title to her back before Christmas. Had to pay $800 in TAVT. That is ridiculous in my humble opinion.