Battle coming over birthday tax
House members are headed for a battle Thursday over whether to eliminate the annual property tax on cars and trucks when Georgians buy a vehicle.
Under legislation the House will consider, people who buy vehicles starting next year won’t pay property taxes on those cars. They also wouldn’t pay a sales tax they’d normally pay if they bought from a dealer. To replace those taxes, all buyers will have to pay a fee of 7 percent, up to a maximum of $2,000, when they title their vehicles.
Georgians who keep their present cars will still have to pay the annual property taxes until they buy another one.
Currently, there is no sales tax on person-to-person sales of cars, so the title fee will capture money from those buyers.
House Motor Vehicles Chairman Tom Rice (R-Norcross) said the bill will result in state and local governments taking in hundreds of millions of dollars more than they get now from sales taxes on cars sold by dealers and from the annual property taxes. Between $100 million and $150 million of that would go to pay for a new trauma health care system
But House Minority Leader DuBose Porter (D-Dublin) plans to make the argument that it amounts to a tax increase on Georgians because they don’t now have to pay sales taxes when they sell or give a car to, say, a relative or a neighbor.
If you’re buying a $150,000 Mercedes, this is a great deal because the bill has a cap (on the title fee), Porter said. But if you’re old Joe or Jane buying your neighbor’s car, it’s a tax increase.
The House will also consider a Republican tax package designed to help create jobs. It would give employers tax breaks if they hire and retain unemployed Georgians. It also would eliminate some other business taxes.
And the House will vote on legislation giving state income tax breaks to people who buy homes.
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80 comments Add your comment
No Tax Increase
March 11th, 2009
6:10 pm
$150M of new revenue is a tax increase. First groceries, now they want to tax car sales between private parties. How is this going to help people that are trying to reduce their expenses?
This piece meal tax reform is a joke. ROFL – is this some vast left wing conspiracy?
Lilly
March 11th, 2009
6:26 pm
No government is a joke and until people start standing up and demanding less government and more private freedom it will continue. People need to start waking up before its to late. Its time Americans as a whole stood up and demanded no useless spending. If we did that then there would be billions of dollars come off the budget.
And by the way do any of you realize that the democrates are pushing this CAP AND TRADE. If ou dont know about it look into it and soon. If this passes and becomes law, Millions of jobs will be lost, not just thousands and companies will flock overseas by the thousands. Ameican companies will not put up with this. Its your future, its time you start reading about what this plan of the democrates is really a about and soon.
Dave
March 11th, 2009
6:29 pm
The plan would also cut down on the carpet baggers moving to Georgia since it would be a title fee of 7%. I wonder how they would determine the value of he car for new residents.
John
March 11th, 2009
6:30 pm
I’m confused. I thought the GOP didn’t like taxes. My, how things have changed.
Bunnie
March 11th, 2009
6:32 pm
That’s just great. And where is this money going? To create a law that bans moron drivers from using their cell phones and/or texting while driving? How about replacing the steel plates that carpet Peachtree Street with some real pavement?
Get a clue. No other state penalizes drivers like Georgia. I can have a $150K car in New York and still pay only $42 per year to update my tag. Here I pay nearly $400 a year for a frickin’ MINI convertible worth about $24K.
Jill
March 11th, 2009
6:33 pm
FAIRTAX!
Jabari
March 11th, 2009
6:43 pm
As much as I like the idea of not being taxed every year on my vehicle, I can see all types of issues with this. So I buy a car here and get it titled. I pay the “up to” 7% sales tax and live happily here. 3 months later, I get a job in TN and move there. 30 day rule – register my car so I don’t get fined. 1.5 years later, I decide to move back to GA with my same car. 30 day rule in GA also applies, so I go get it titled. Does this mean I get taxed up to 7% again? If so, how often would this occur on the same car? This state is trying their best to squeeze every dime out of us. Doesn’t make sense to pick up a penny b/c they’ll tax us on that revenue too! Don’t they realize that it’s our commerce that helps keep this state moving? This is the only state I’ve lived in where they yearly tax you for owning a car. Oh, I rue the day when they start taxing me for the air I breathe! I say keep the tax at the point of purchase and leave it at that. Just imagine inheriting a car from a loved one who recently passed only to be told, “Yeah, nice car and sorry for your loss, but you need to give us $3574.43 before you can drive it.”
Melissa
March 11th, 2009
6:45 pm
@Jill…. Amen!! Let’s go, fair tax!
Jabari
March 11th, 2009
6:52 pm
And wait! If we can vote on which flag we like, whether to clarify marriage (no matter how ambiguous the terminology), why can’t we get a say on this?!?!
Republican Ruin
March 11th, 2009
7:16 pm
Hard to believe it’s the Republicans who keep pushing these tax increases and the Democrats who are fighting them. The Republican party is a disaster. They have no connection to their roots, i.e. smaller government, less tax, more freedom. At least the Dems stick to their platform. Now I officially have no choice at the polls, argh! I guess I’ll vote Libertarian.
The Little Guy
March 11th, 2009
7:23 pm
Hey No Tax Increase,
This is a “right wing” conspiracy. Read the article a GOP member is trying to introduce this bill. The “left wing” Democrat is saying no.
Reduce taxes on the $150K Mercedes driver, but tax the heck out of the “little” guy. Way to go Georgia.
Martha
March 11th, 2009
7:33 pm
Even though I have been told by my State Representatives that the State has cut as much as it can, I believe very little that comes out of most politicians’ mouths and have told them so. We need a fair tax, and we need to “clean house” every two years in Atlanta. I bet if we could check out every legislator’s expenses for which we are paying (cell phone, travel, credit card, etc.) we would be able to pinpoint just where a lot of our money is wasted. Make your voices known to these people that we are tired of their tax-and-spend ideas. What extra taxes they put on us will surely be put to NO-GOOD use.
Cruzin
March 11th, 2009
7:40 pm
Everyone is missing the big picture. If passed the bill will send $100 million and $150 million to pay for a new trauma health care system. What about the 8 plus percent unemployment in Georgia? Why isn’t the legislature doing something about unemployment? Today you had 19,000 people attending one job fair and our state legislature is so out of tune with reality, you have to wonder what planet they live on. Time to vote these idiots out of office!
Bobby
March 11th, 2009
7:43 pm
So where is Boortz, Hannity and Herman Cain at when the Republicans are raising the taxes and putting more restrictions on our private lives. They are too busy blaming Democrats for the mess we’re instead of looking at the Georgia Republican Party. Senator Chambliss criticizes Democrats for pork projects but isn’t willing to take out his pork projects from the $410 billion spending bill. Georgia Republicans are doing excellent jobs of speaking out of both sides of their mouth convinced that Georgia residents and other Southerners don’t have the intelligence to realize we are being duped. Boortz, Hannity and Cain do us no favors as talk show blabbering idiots.
Ricscotay
March 11th, 2009
7:48 pm
This is much more fair than our current system. Jabari the analogy you gave was inaccurate b/c the tax only applies when you purchase a car in GA and the reason we voted on those other items you mentioned is b/c it would take a constitutional amendment to change them but it does not take one to change this. You will end up paying less in tax on the vehicle in the long run.
Patrick
March 11th, 2009
7:56 pm
Wow, 7 percent fee? Based on WHAT? Suppose I sell my used car to a relative for $300. The state is going to want $21. Or are they going to look up that car in some book and arbitrarily decide that it’s actually worth $10 grand or something? Suppose I sell a car for a dollar just to get rid of it. And don’t joke, because I have done just that as well as buying a $1 car from someone else. Is the state going to come in and ask for 7 cents or are they going to decide that the car was actually worth some number they come up with out of thin air? This is unworkable and stupid AND worse. When I bought my last new car, the taxes were rolled into the financing. Under this new plan, it doesn’t look like that will work because the 7% won’t get paid until later. That means a lot of people will be facing a lot of out of pocket money that they cannot finance. Car sales are going to stop. Worse than now. Stop dead.
MattS
March 11th, 2009
9:05 pm
Tax Shift? Additional Tax? Additional taxes do not generate additional capital. Business does. Where are the initiatives to bring more business = jobs to Georgia? Tax schemes inhibit business growth. Any business considering a place to locate looks for a state that is tax friendly. We need additional jobs for our Georgians, not new taxes. THAT is how we generate the needed funds for Georgia.
Brian
March 11th, 2009
9:19 pm
But wait, if I do a little research I can buy 1/4 an acre of land in a county that has a really low annual property tax and then title the said vehicle in that county and still pay near nothing. Say for example Gordon county where a 2000 BMW 3 series was less than $200.00 but the same BMW in Dekalb county was over $500.00 how can this be fair. Oh wait were talking about government what’s fair about government? NOTHING! We get screwed every time!
William
March 11th, 2009
9:28 pm
Thank goodness there are still some Democrats in this state to look after the middle class.
RLM
March 11th, 2009
9:36 pm
Throw the bums out next election. Term limits, please.
AFAN
March 11th, 2009
9:46 pm
I figured it out!
I am going to buy a $50,000 stereo and ask them to throw in a $1 car.
Randy
March 11th, 2009
9:58 pm
How about Sonny and some of these other idiots taking a pay cut and reduce their spending. Dang middle class doesn’t stand a chance…Rich get richer and the hell with everyone else.
Big Man
March 11th, 2009
10:05 pm
As so called ‘fair taxes” go this is a fair tax over time! What I am interested in is less tax!!!!!!!!!!
ProudToBeAmerican
March 11th, 2009
10:07 pm
This is why I am sooooo glad that I moved back to the East Coast! The Georgia advolrem tag tax was already ridiculous. To think it would have been even more than the 550.00 dollars me and wife paid for our 2 cars had we stayed, and purchased new vehicles, turns my stomach!
Why does everything from the lack of solid mass transit, putting a subdivision in every crack and crevice of land, poor and under funded schools, total lack of intelligent decision making be the trademark of Georgia?
Who is coming up with these crazy ideas, backwoods inbreeds? The proposal for the forthcoming tax on food, said to tax illegal immigrants because they don’t file tax returns when most of the immigrants have or soon will be returning back to their countries for lack of work. This means that a lot of senior citizens like my mom will have to pay more for groceries and not have the ability to file to get the money back-all she gets monthly is social security!!!
Then the repeal of the homstead tax exemption on the homeowners that still have homes, like my mom whom is on a fix income! Then the water vs. drought-one minute the watering standards are relaxed and you can water the lawn, then every summer like clock work-stringent drought prohibitations are imposed-the metro Atlanta areas wouldn’t have a water issue had the funding and the construction of the resevoirs been stopped by Perdue when he became Governor! So you get shafted from the higher water bills saying Georgians conserved too much, and the water departmens revenue has declined and neather can you water your lawn either! The State, City and county leaders are insane down there!
I just need to come down there and move her in with us up here with us, so I won’t have to worry about her well being, or the lack of it!
AFAN
March 11th, 2009
10:23 pm
Question for Randy,
What is middle class…I hear it all day everyday…nobody ever defines it (please don’t say working folks)…how much does the middle class household earn annually…how much do you have to make to push you up to “rich”…Do you own a home or rent…do you have a retirement account (that will support you in retirement)…….I really am interested
Redbone341
March 11th, 2009
10:35 pm
I am against this proposed vehicle tax. According to the Republican Tom Rice, the money will go to a trauma center (yeah right). They will take that money and spend it on something useless rather than what it was meant for. The same with the Ga lottery money for education. Georgia had so much surplus from the GA lottery that they took that money and retored old buildings and then cut the funds for hope. Georgians are already struggling to pay their bills and now an unwanted 7% tax to come up with $2,000 will take at 3 years.
DOUGLAS
March 11th, 2009
10:49 pm
Douglas County Water & Sewer Authority is a taxing machine. They charge a monthly fee for storm water runoff. A monthly fee for the water pipe that runs to your meter even though the builder paid for and installed most of the pipes years ago. A monthly fee for the sewer pipe that exits your property. Then tack on your actual water and sewage usage. Oh, And if you’re late one day paying your bill, they also add a 15% penalty. I pay water bills for someone who owns commercial properties. Several of the empty buildings with zero water usage will still incur a bill of over $100 per month. Taxation without representation!!!!!!!!!!!!!!!!!!! WSA members are appointed and continue to find new ways to tax the citizens.
Newman
March 11th, 2009
10:54 pm
IS my math right?
$18,000 car
over the next 6 years an average $160 tag tax = $960.
I then sell the car.
New Tax:
$18000 car = $1260 tax
I need to keep my car an additional 2 years to even out. In a time when we need to be supporting our automakers, the Georgia assembly is forcing you to keep your car longer .
Doesn’t make sense to me.
sonny
March 11th, 2009
11:10 pm
Move to Florida…no state income tax. normal or comparable sales tax. no CAR tax. better beaches. GA sucks.
N Buerhaus
March 12th, 2009
4:19 am
It’s time for the Fair Tax. Politicians have shown themselves to be greedy little special interest puppies with no real concept or way to govern fairly. Let’s get the fair tax in place and eliminate their meddling, increase revenues, create jobs and leave more money in a working man’s pockets.
American
March 12th, 2009
5:00 am
Well, well, you voted for this mess and now you want to complain! You voted for this MESS!!!! You get what you voted for, yeah that’s right you the self righteous voter. Now are you ready to wake up and take command!! Taxation without representation! Sound fimilar. I think these elected officials are trying their best to start another Civil War and this time it will be the hard working class/laid-off people against the politicians!!! Has anyone heard of the word IMPEACHMENT? Hey if we voted them in and they are not working in our best interest, then it is time to get rid of them, btw any potitician over the age of 60 needs to retire! We need new ideas not old ones that do not work! Think about it Americans!
Paul Broni
March 12th, 2009
6:08 am
We had this system in Maryland, although you still paid your sales tax at the dealer. The sales tax was payable on person-to-person sales, though, when you titled the car.
They would compare the sales price to the blue book value. If there was a discrepancy, they would use the higher value. However, if you had a notarized letter saying that the car was sold for less than blue book because of damage or whatever, they would use the lower value. Also, I seem to recall that if you were given the car (again, need a letter), they would not charge you the tax. Lastly, the tax was not paid just for getting tags (someone asked about moving in and out of state), but only when the title was *transferred*.
I can’t see how they expect people to pay up to $2,000 (cash) in sales taxes on a new car when so many people don’t even put that much down when they buy one. The sales tax on new car sales needs to be paid at the dealer so that it can be financed, if necessary. If someone trades in a car with equity and doesn’t need to put any cash down to make the purchase, they should not have to come up with $2,000 cash to get their title.
This is going to do more harm than good for new car sales.
JayInAtlanta
March 12th, 2009
6:15 am
Some people won’t be able to title their vehicles, because previously, the sales tax could be rolled into a car loan check and financed (that could even be done with private sales). Now, people are going to have to come up with the dough on their own at the time of titling. Perhaps some will say this will lead to greater responsibility, but it also may lead to fewer new car sales, as others have commented.
bull-gator
March 12th, 2009
6:18 am
Why not tax the air we breathe? These bozos in the state legislature are as stupid as their brethren in D.C. By the way, I grew up and lived in Florida for decades. I wouldn’t move back to that third world country even if they paid me to live there. All the foreign immigrants(legal and illegal) and damn yankees ruined the place. You can have it. Florida sucks. Except for the Gators and Bulls.
Skram30082
March 12th, 2009
6:22 am
This is a ridiculous idea. How will the proceeds from this 7% tax be distributed to the counties? I guess according to some formula determined at teh state level.
If they want to get rid of the car tax, just repeal the law that allows counties to set the tax rate. The rate varies among counties because the proceeds from the tax are (proportedly) used for maintenance of roads, etc. in the county. But, if they repeal this law, just know that the counties will be forced to raise or implement a new tax to replace the funds generated by the current car tax.
We have to decide what we want and how we want to pay for it. I don’t like the car tax any more than anyone, but at least it is one tax where I think I know what my tax dollars do.
This is another case of the state government trying to control what local governments can do. I thought conservatism was based in part on taxation and accountability for those policies at the lowest local level, not control at the highest level.
This is another form of income redistribution. And this will absolutely kill car sales.
S
March 12th, 2009
6:38 am
Classic smoke and mirrors… This is a tax increase no matter how you slice and dice it. The ad-v tax now is based on the mil rate of the county you’re in along with the the value of your car. As the car depreciates the tax goes down. But let’s look at some numbers. When I bought my convertible I never paid more than $400-not that I liked that-to renew the tag and of course over the years it’s gone down. But at a flat 7% fee my renewal at least in the first year would be over $1100 dollars actually closer to $1200. That’s tipple. and it’s under the $2000 cap so they could do it. Don’t fall for this one y’all… Make some noise…
Bob
March 12th, 2009
6:59 am
Does anyone like the idea of not having to pay the sales tax of 6-8% if you buy from a dealer? Having the one time fee that may be less than what you were paying in sales tax alone is a good deal for anyone who buys and holds a car for its useful life.
If you trade up in car every year or two you are going to pay more.
Sandy
March 12th, 2009
7:00 am
This is a break for car dealers and a penalty for Georgians.
Watch how your congressmen vote and you’ll know the truth about how they vote on everything. Then when it’s your time to vote, vote them out of office.
If you keep voting for a party candidate (either Dem or Rep), you’ll keep getting screwed. Neither party cares about Georgians or Americans. They are in it for themselves.
WTF Lunacy
March 12th, 2009
7:09 am
I’ve seen this plan before, growing up in NJ. Here’s how it worked and how it got worked around (Mind you, this was over 22 years ago….):
DEALERSHIPS had the ability to register your car for you. So they would roll the cost of the registration into the financing, issue you a temptag, and you would return to the dealership in a few weeks to have your permanent tags installed and receive your registration card. It alleviated the huge out-of-pocket expense at the DMV counter for the buyer, but inflated the cost of the loan. It was a do-able solution to the enormous TAX burden in order to simply register your vehicle.
PRIVATE INDIVIDUALS had a different approach. Everyone knew to get 2 receipts for your used vehicle purchase: 1 for your records, and 1 for DMV. Since DMV taxed you only on the purchase price, and not some blue-book value of the vehicle, you could produce a $1 receipt and pay the taxes on that amount only.
I don’t care for this type of system inasmuch as:
A) It breeds dis-honesty. In these tight economic times, if this is passed, Georgia is going to see a sudden increase in sales of $1 vehicles.
B) If private vehicle buyers are going to be expected to pony-up $2,000.00 to register their vehicle, why buy one? Stay with what you’ve got until the wheels fall off.
C) It will impede new vehicle sales as new buyers can be as much as $2,000.00 more, upside down in a new vehicle purchase right from the start.
The state would have to ask itself: Where does the majority of our revenue come from? Who titles the greater amount of vehicles: Dealerships or private individuals? If the answer is Private individuals, this policy is a trainwreck looking for a place to happen. Dealerships would have to substantially outnumber private individuals in new vehicle registrations in order to offset the lost revenue of $1 sales.
Questions:
Are we taxed on the cost of our purchase (receipt) rather than the value (blue-book)?
Can dealerships in Georgia handle the state registration process for vehicles they sell?
Won’t this type of huge out-of-pocket expense cause a slow down in vehicle sales in this state? Anyone toying with the idea of upgrading their current vehicle might now be discouraged.
Irritated
March 12th, 2009
7:09 am
Left-wing? Are you serious? You need to look at who is pushing this in the GA Leg. and it AIN’T the left.
native
March 12th, 2009
7:20 am
Education is in disarray in Georgia, now sale taxes are being raised on vehicles. This is the same party who said all throughout the 1990’s if they were in power they would eliminate the tax on cars. Please Georgians, wake up! Kick these guys out of office and put someone in that actually care about the average guys. Sonny, whoever the speaker of the house and the leader of the state senate and those who are positioning themselves to run for governor, none of them care about the average guys!
Steve
March 12th, 2009
7:27 am
Why have so many of you been conned with this “fair tax” nonsense. It’s another tax system that milks the middle class and gives the upper classes more tax breaks. Follow the money. who wants the “fair tax”? The rich.
Why are Republicans in Georgia proposing such nonsense, such as this title tax here? TAX THE RICH MORE. It’s that simple, people. Progressive taxating works. But the rich, who one the GOP, hate it, of course.
Steve
March 12th, 2009
7:30 am
Ridiculous. You people keep voting for the Republicans, the party that caters to the rich. Why are you constantly conned by these people?
Phill
March 12th, 2009
7:31 am
If you sell a car in a private sale. You take cash and say you sold it for $1 then that 7% tax becomes .7c.
Your morning jolt | Political Insider
March 12th, 2009
7:52 am
[...] House Dems plan to argue that car fee swap amounts to a tax increase. [...]
TBone
March 12th, 2009
8:01 am
FAIR TAX!!!!!!!!!!! YES
Never a dull moment « Walk In Brain
March 12th, 2009
8:04 am
[...] the ad valorem tax on cars. There’s got to be a better way. However, I’m pretty sure the plan proposed by Rep. Tom Rice (R-Norcross) is not that better way. It’s grossly unfair to lower- [...]
JoeGa
March 12th, 2009
8:08 am
More punitive taxes from the legislature, big surprise! Might be one thing if current car owners could stop paying the ad velorums in the meantime, but nope, still taxed until those cars are gone. I’VE ALREADY PAID MORE THAN THE 7% NEW CAR VALUE IN TAG TAXES FOR MY OLD CAR OVER THE YEARS!!!! HORSEHOCKY! Sonny and the fake republicans stink! What’s a consevative like me supposed to do? Write in Neal Boortz and Herman Cain next time?
2BFREE
March 12th, 2009
8:37 am
Okay people, instead of reading a very little about the Bill, go to http://www.legis.state.ga.us/ and type in HB480 and read the Bill itself.
Lynn
March 12th, 2009
8:41 am
I agree. Our government officals want us to cut back on jobs, food, housing and medical care is unreal. Where are they cutting back. Government spending is ridiculous. Where do they come up with these ideas? I think someone should remind them of those famous words, “We the people” and Unfair Taxation! We all need to take a strong look at the politicans we put into office and that we pay there salary out of our taxes.
james in dublin
March 12th, 2009
8:43 am
I voted for Sonny Perdure twice. What a fool i was. He is no doubt the worse governor i have ever seen. This is just one more reason why i am counted the days til he leave office.
Rip
March 12th, 2009
8:46 am
This will bring jobs to Georgia because companies will sprout up who lend consumers $2k after they purchase the new car. They will charge 21% interest, assume the title and be able to claim the car if they dont pay the money back.
Then, that will create jobs because we will need more REPO men/women. What type of rogue soceity will we become?
2BFREE
March 12th, 2009
8:49 am
People like comparing the taxes in Georgia to other States, but they fail to give the facts. Florida is popular to compare for they have no income tax, tax on cars, and their sales tax is only a percent or two higher. However Florida is fortunate to be a tourist magnet with the likes of Disney and tremendous miles of beaches. Anyone ever look at the hotel and car rental tax in Flordia. Of course the residents don’t pay it, but Georgia doesn’t have people willing to pay extra to visit. And anyone ever compare the property taxes on a home in Florida to Georgia. First the home values are higher, but even on a comparable basis, a $250K home in Georgia with all exemptions applied is about $2,500 or so a year. In Flordia a $250K home averages about $4,000 a year in taxes. Not to mention insurance rates of over 300% more than those in Georgia. Someone mentioned only paying $42 a year in NY for their vehicle. Funny because just last week I was speaking to someone from NY that said when they moved to Georgia 3 years ago they saved over $200 a year on their vehicles since NY had a yearly tax on their vehicle seperate from the registration fee that was much higher than the ad valorem taxes they pay here. He was offered a job back in NY making $45k more a year and turned it down because he said his over all taxes in Georgia were 1/3 what he paid in NY (that includes all taxes).
CC
March 12th, 2009
8:51 am
T Bone you are right FAIR TAX PEOPLE!!!!! How are people going to come up with this money when the sales tax is usually rolled into the car loan? Customers will be complaining saying that dealers did not tell them about this…Most already think the sales tax on cars as a bargining tool. Just one more way to slow car sales down in GA. Counties and the State should look at how much revenues have already been lost due to the slump in car sales. They should give car buyers a tax free month on cars. That would help car sales and the state would still get income tax on the money made by selling the car.
Ben Dover
March 12th, 2009
8:54 am
How ridiculous. The representatives should be coming up with ways to reduce spending, NOT raising taxes.
Ben Dover
March 12th, 2009
8:56 am
Hey AJC, It’s 9:56 am. You need to set your clock. Daylight savings began last Sunday.
Hotshot
March 12th, 2009
9:00 am
Bottom line, this is a tax increase. The bill has the backing of the Georgia Automobile Dealers Association, obstensibly to generate tax revenues escaping via curbside dealers, but it’s really a means of forcing all sales through licensed dealers, so they can make a profit.
The way the bill divvies up the money, local government loses, state and GADA gains.
sr citizen dawg
March 12th, 2009
9:33 am
Georgias’ system of ad valorem taxation on motor vehicles is both archaic and unfair. (likewise are its sales tax statutes and exemptions) John Does’ 09 Mercedes should bring in sales tax revenues of $11700.00, By capping his tax at 2000.00 he effectively gets a tax break of 9700.00. Bill Doe who can’t afford an 09 Mercedes but gets a
new Toyota solara also pays $2000.00 (same as John paid) for a vehicle nowhere near equal in value.
Likewise, ad valorem taxes instead of being based on vehicle values (which are fouled up in the states’ assessment system) should be based on vehicle weight on a progressive scale. The lighter vehicles would pay less while the heavier vehicles (which cause more wear and tear on the roads) would pay more. Actually the fair formula would be weight + annual miles driven multiplied by a tax factor. Administering such a fair tax however would prove horrific.
stevo
March 12th, 2009
10:07 am
$150M of new revenue sounds great until you stop to think about where it will come from.
Hee’s a thought for the Fair Tax… Those of us who have “done the right thing” by saving after-tax money will be taxed ANOTHER 32% on top of what has already been taken??? NO THANKS!
James S
March 12th, 2009
10:16 am
I am happily moving out of the “Taxing State” This was my home for 40+
years but now I’m gone from the ridiculous taxes that impedes growth in the State. No wonder companies locate their businesses elsewhere!!
Tara
March 12th, 2009
11:02 am
Seems like a lot of congress and senators will be taking the long walk come 2012. Yes, I can see a lot of new people heading to washington. I just hope they are not more of the same.
OK PEOPLE – fight for CHANGE WE CAN ALL BELIEVE IN. Obamas change has left me pennyless.
Judy
March 12th, 2009
11:03 am
I would like to know who came up with this dumb idea. This is another prime example of how our political arena is totally out of touch with the people needs and the “real world.”
If they need more revenue – enforce cuts in the budget that is what everyone else has to do.
Tara
March 12th, 2009
11:19 am
Trading up for a car ever year or two is what keeps the economy thriving.
judy
March 12th, 2009
11:38 am
I drive a 14-year-old car and not an expensive one either. I am not poor by no means am I rich. When this car dies, my purchase would be predicated upon this tax. So, car manufacturers are being impacted because I may buy the cheapest I can find and it be decent to avoid paying a huge tax at time of purchase. Dumb idea…..
TBone
March 12th, 2009
12:11 pm
It passed
Jimbo
March 12th, 2009
12:13 pm
Vote William Tecumseh Sherman for Governor of Georgia.
A man whose time has truly come for our great state.
J.D.
March 12th, 2009
12:20 pm
What the hell are they smoking at the Capitol??? No property or sales tax on new car purchases, but a 7% fee to title the car… that’s hogwash!!! Every car retailing for $29K up will hit that $2000 max, and don’t you know after buying a used car from your neighbor or buddy they’re gonna l-o-v-e you at the tag office when you show-up to change the title.
If that’s the best they can come up with, then leave it the hell alone!!!
dj
March 12th, 2009
1:40 pm
So, what will Ga. do with the people who live in ga. but have license plates with out of state tags? How will they collect birthday tax from these folks. I have a neighbor who has lived in our subdivision for 5 years. The person bought their vehicle in S.C. and to this day still has
a S.C. license plate / tag. I have to pay my tax for my vehicle but this person gets away without paying the birthday tax! Something is wrong with this system. Georgia needs to get after these folks and give
the law abiding tax payers a break!
Jeff
March 12th, 2009
1:42 pm
And don’t forget, the old ad valorem tax on our vehicles was deductible on our Federal tax returns, this new “fee” won’t be.
RCH
March 12th, 2009
1:45 pm
Last year I gave my retired father our old pick-up truck. This year my son graduates from college, and goes to work, at which point I plan to sign over the title to the car he drives, so he takes full responsibility for it (including insurance). As I understand the proposed new title fee, both these pieces of family business would incur significant cost increase. This is wrong.
Ron N' Mexico
March 12th, 2009
2:04 pm
Is this HB 480? If you disagree with this I encourage you to contact your represenatives and tell them you dont want this. Unlike on the federal level, they just might listen to you.
As a conservative I am appalled at the “republican” leadership in GA. Make the cuts needed, and dont cut those who are paying the taxes. To whom ever mentioned that Boortz hasnt brought any of this up, you should listen to him before you spout off. He has talked about the failed food tax hike.
Native Atlantian
March 12th, 2009
2:36 pm
Are the people in the House recommending this new tax increase the same ones that have not PAID THEIR INCOME TAXES? The state would have plenty of revenue if you would collect from them or make them step down from their seats and not let the run for office again.
Fred
March 12th, 2009
2:57 pm
The very idea that someone would even think of this new tax at a time like this JUST MAKES ME SICK.
Neil
March 12th, 2009
6:33 pm
I’m confused why everyone is so upset here. When you buy a car, you pay sales tax which in the Atlanta area is 6% or 7% anyway, then you pay ad valorem every year.
If you buy an AVERAGE $30K car, then right now you would pay $1800 in Cobb County in sales tax and in Fulton or Dekalb you’d pay $2100 in sales tax and then ad valoren EVERY year. Under this change, you’d pay $2000…PERIOD.
WHERE IS THE PROBLEM HERE PEOPLE? Oh…and many other states charge a value based annual tax on vehicles. In Massachusetts it was called “excise tax” and was double what we pay here in GA.
Richard
March 12th, 2009
7:47 pm
How about a two percent fee with no cap? Let those who can afford those higher end cars pay their fair share. What was that old song-”and the beat goes on.”
bobby morgan
March 12th, 2009
11:26 pm
best leave well enough alone with the birthday tax 7percent when you title your care will only go to slow already sales on cars. this sounds like a big bag of bull in our state run by guess what -a republication governor
Neil
March 13th, 2009
10:35 am
How will 7% “slow sales” Bobby? That’s equal to what many people are already paying in sales tax, which isn’t capped. This fee is INSTEAD of sales tax NOT in addition to it.
I wonder if people can do basic math here. Doesn’t seem like it.
PERCY
March 14th, 2009
2:42 pm
Come on you low income losers, I am waiting for my $400,000.00 special edition Lamborghini to arrive in 2010. Can you believe that we will only have to pay $2000.00. Thats .5%, truly a gift.
Thank you Georgia, we love you and Sonny too!
Kathy
March 16th, 2009
12:20 pm
Tax tax tax tax…. spend spend spend …that is a politicians answer to everything! It does not matter if they are Republican or Democrat. This is what we get when we have big government….big taxes! Americans, Georgians are NOT being represented by our elected officals any more.Once in power, they become part of the problem.
Does the phrase, No taxation without representation, ring any bells?
But what can we do? The system is broken, it is infected by professional politicians that will not allow the necessary changes to take place.
How do you turn a fiscally responsible Republican into a spend thrift Democrat???…you elect him!….What is a Democrats definition of RICH?….anyone who has a job!…What to do, what to do…
Kathy
April 17th, 2009
2:26 pm
Kathy, you ARE represented, what are you talking about with the “no taxation without representation” stuff. GA voted these Rethugs into office, now they are getting EXACTLY what they voted for….which is tax cuts for the rich and tax hikes for the poor.