Out-of-state car buying & ATL registration (Atlanta: sales, real estate, leasing)

[mintykitty]

I am moving to Atlanta in July, but plan on buying a new car in Texas before moving. I'm learning that as an out-of-state buyer, I can forgo paying TX sales tax (since I must pay GA sales tax with registration) if I have a GA address.

Has anyone gone through this process before? The paperwork and fees do differ depending on county, but how smooth is the paperwork? For someone who doesn't know much about legal stuff or financial matters, the words MV-1 tag and title application, T-17 Affidavit of Title Held by Lien, and T-22B Certification of Inspection scare the bejeezuz out of me.

Someone help! I've looked at the DMV website for new GA residents (http://motor.etax.dor.ga.gov/motor/registration/newgares.asp), but there's nothing straightforward about it. Can someone simplify this??

[snapdragon]

This is one of those complicated things in life that just should not be complicated.

I was going to write our long and confusing scenario, but realized that it wouldn't help you much. I found it very difficult to register our cars and not too smooth. Even if you call them they will give you a different answer every time you call.

Good Luck.

[xxman777]

You shouldn't have to pay Georgia taxes if you pay taxes in another state (this only applies if you are a resident of that other state). I would guess you should be able to choose which state you want to pay taxes to, assuming Texas allows you to not pay taxes there. When I brought my car in from another state I didn't have to pay taxes in Georgia because I had payed them in my former state. Another time when a bought a car from another state (bought in IL, lived in CO) I was able to not pay taxes in IL because I had to pay CO taxes. However I was already a resident of CO. I was told if I was a resident of IL I would have to pay their taxes. It seems like if you are a resident of TX when you buy the car you will have to pay their taxes.

[FatElvisForever]

Originally Posted by xxman777

You shouldn't have to pay Georgia taxes if you pay taxes in another state (this only applies if you are a resident of that other state). I would guess you should be able to choose which state you want to pay taxes to, assuming Texas allows you to not pay taxes there. When I brought my car in from another state I didn't have to pay taxes in Georgia because I had payed them in my former state. Another time when a bought a car from another state (bought in IL, lived in CO) I was able to not pay taxes in IL because I had to pay CO taxes. However I was already a resident of CO. I was told if I was a resident of IL I would have to pay their taxes. It seems like if you are a resident of TX when you buy the car you will have to pay their taxes.

You pay the sales tax in whichever state the car is first registered. I believe that's the simple answer for how this works.

[mintykitty]

Thanks for the comments, everyone! I'm still not quite clear on the rules b/c the GA DMV page explicitly states that GA sales tax must be paid. Plus, what's with this ad valorem tax?? OUCH! Anyway, we'll make it work. Thanks for the input!

[nibseysgirl]

Originally Posted by mintykitty

Thanks for the comments, everyone! I'm still not quite clear on the rules b/c the GA DMV page explicitly states that GA sales tax must be paid. Plus, what's with this ad valorem tax?? OUCH! Anyway, we'll make it work. Thanks for the input!

Hi there,
I can tell you how it works here in Fl if you live in another state. If you buy in another state and pay tax then you get that credit on your tax here if as in my case there wasnt any tax(I lived in NH) then you pay it all in the state your registering the car in. I think this is generally how it is done in most states that you buy a car in one then register it in another. Save your reciepts unless it is clearly stated on your previous states registration. It was a simple process here. I am looking to buy a car here in Fl but I think I am going to wait to get to GA b4 doing so that way I can avoid any complications....Good Luck

[AKelley728]

Originally Posted by mintykitty

Thanks for the comments, everyone! I'm still not quite clear on the rules b/c the GA DMV page explicitly states that GA sales tax must be paid.

You only have to pay sales tax once... like FatElvisForever said, if the first registration of the car is in TX, you pay TX sales tax. If the first registration is Georgia, you'll pay GA sales tax. When you register your car, and you present an out-of-state registration - they assume you've already paid that state's sales tax. They can demand to look at the sales contract to make sure you've paid it if you're coming from a state that requires it.

We just moved to GA from NJ and registered our existing car. Unlike snapdragon's experience, I found the process very smooth for registering the car. I downloaded the MV-1 form from the DMV site, filled it out and presented it along with my title, NJ registration, inspection certificate, GA driver's license and a blank check . I got my new plates ten minutes later. I didn't have to do a T-17 since my car is paid off and I have the title. From what I understand, you only have to do a T-17 if your lender or leasing company is holding your out-of-state title (some states give you a title certificate regardless of who holds the lien). The T-22b is only required if you're coming from a state/country that doesn't require a title certificate for your vehicle. Texas requires a title, so you're fine in that respect. Of course you'll only have a Texas title if you register the car there.

In your situation I would want to pay the sales tax that has the lowest rate. You'll only have to pay it once! You will not have to pay sales tax again when you register the car in GA. In GA you pay a state sales tax and a municpal one too. The municipal sales tax varies depending on what city/county you reside in. So do your research when comparing against what you'd pay in texas!

Originally Posted by mintykitty

Plus, what's with this ad valorem tax?? OUCH! Anyway, we'll make it work. Thanks for the input!

The ad valorem tax is basically a personal property tax for your car (one reason why real estate property tax in Georgia is low - the counties have to get their money somehow!). The ad valorem tax is paid in the month you were born, and you'll pay it every year. For a new registration, you won't have to pay the tax until your birthday, unless it's within 60 days of your b--day, then you'll pay it at registration and you'll be good until the following year. The formula that calculates the tax is based on what your vehicle is assessed at. As your car gets older and loses value, you'll pay less tax. You can go here to figure out how much tax you'll pay: http://www.state.ga.us/DOR/ptd/cds/mvman/2007/

A better site to go to to get your motor vehicle license and registration questions is dmv.org. Go here for GA: Georgia Vehicle Registration & Titling - GA Car Registration Guide - DMV.ORG
One final piece of advice - I don't know how it is in TX, but in NJ you could get your drivers license and register in the same place. In GA these are controlled by separate entities. So you'll have to make two trips to get your license then registration!

[mintykitty]

Thank you, AKelley728, for your detailed response! It's a great comfort to finally converse with someone who has gone through the same thing I will need to do. I've read all the DMV pages, but was having trouble with the terminology.

Since my original post, I have bought a car here in TX, registered it and paid sales tax here in TX, which did turn out to be less than the GA sales tax in Fulton County, to which I will likely move. I've downloaded the forms, but now thanks to you, I know what I actually need and don't need!

I've read that you can make an appointment at the DMV to speed up the driver's license portion, so at least that part seems to be painless!

Thanks for everyone's help!

[AKelley728]

Originally Posted by mintykitty

Thank you, AKelley728, for your detailed response! It's a great comfort to finally converse with someone who has gone through the same thing I will need to do. I've read all the DMV pages, but was having trouble with the terminology.

No problem! Glad to help! Oh, one thing - it's DDS here in GA, not DMV.

Since my original post, I have bought a car here in TX, registered it and paid sales tax here in TX, which did turn out to be less than the GA sales tax in Fulton County, to which I will likely move. I've downloaded the forms, but now thanks to you, I know what I actually need and don't need!

You made the right decision - it'll be easier for you to register.

One thing to keep in mind - what year is your car? If it's 1983 through 2004, you need to get an emissions inspection. Cars 1996 and newer can go to an 'express' emissions station where they hook something to your car's onboard computer to test the emissions. The express emissions tests vary by location, I paid $25 for my test. Go to Car / Vehicle Emissions Testing in the State of Georgia. to check for emission station locations. You'll need to bring your emissions inspection certificate with you. Of course if your car is new, you won't have to worry about it.

I've read that you can make an appointment at the DMV to speed up the driver's license portion, so at least that part seems to be painless!

This depends on location. Call your local DDS and see if they take appointments. Mine didn't, and I had to wait an hour.

[fil]

I bought an exotic sports car from another state a few years ago and had it shipped to Georgia.

A tax letter was sent to me and I paid taxes in GA after I registered it.