Taxes on Leased Cars (Atlanta: cost of, bill, down payment)

[Vitamin Z]

Hi all, I am residing in Atlanta and am a bit confused about the treatment of taxes on a leased vehicle. If I decide to lease a vehicle, do I pay the TAVT tax on the entire capitalized cost of the vehicle or just the payments I make? I have searched online and have not been able to find an answer I can understand.

For example, if I lease a vehicle with a capitalized cost of $18,000 with $2,500 down payment and $180/month payments for 36 months, am I paying 6.5% on the $18k or am I paying 6.5% on the $2.5k down payment and $180 monthly payments as I make them?

[flyonpa]

Right now you pay in the 18K

There is a bill in the hopper to change it, to just 6.5% on the Down-payment & monthly Payment, but that has not passed, Was a over site when they passed the change in the tax system last year (2012).

So at this point you pay on the 18K