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New car tax law to impact office

LAWRENCEVILLE -- The reform of the so-called "birthday tax" will mean extra expenses at the tax commissioner's office.

During a budget discussion in Gwinnett Monday, Tax Commissioner Richard Steele asked for a boost to expenses to deal with the new law, which becomes effective in March.

With some extra workers and equipment needed to deal with questions and concerns from people, Steele said the biggest expense will likely come from credit card fees, to the tune of half a million dollars.

The new law will do away with annual taxes for motor vehicles, but it will instead require a larger initial tax. For example, Steele said, if a person buys a car from a neighbor for $5,000, he now pays $18 for a title fee and $20 for a tag fee. When the new law is fully affective, the transfer of the title will require a $325 title tax.

The law has a transition period, where people can choose to maintain the lower annual fee instead of the higher one-time fee. Steele said he expects transactions to take five to 10 minutes longer each, as staffers help people calculate which option is better for them.

Steele has asked to add eight contract employees in tag offices to help with the increase, and two more in a call center.

"We feel like the first year is going to be the worst," he said of the transition, when he is asking for employees to be contracted, not added to the county payroll. "It's not a long-term commitment to keep these people on."

Steele has also asked for some extra money for educational materials to make people aware of the new law, and he expects a need for $170,000 in postage in 2013, since new tags will have to be issued to all car owners.

Comments

kevin 1 year, 10 months ago

did this all these years without another tax. Now we need a tax? Looks like Steele needs to find another job.

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pcjohn 1 year, 10 months ago

Not his fault. The GA legislature passed this law this year. Steele just collects the state fee. If you want to get rid of someone get rid of Deal - he promoted and signed the Bill into law.

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CD 1 year, 10 months ago

Get rid of "Watermelon Wine" fair Deal AND Mother Nash needs to tell Steele to get the job done or get out.

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CD 1 year, 10 months ago

I meant to post the picture as well.

None

by CD

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roaads1 1 year, 10 months ago

Come on!!! This is another dog & pony show. Get rid of the birthday tax and replace it with this. So taxing us on a different day and calling it another name is how we got rid of the ad birthday tax. Really?

http://www.gwinnettdailypost.com/users/photos/2012/sep/11/53474/

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TOWG 1 year, 10 months ago

It would have been nice to see a list of our house representatives and how they voted on this new tax. Payback can be tough.

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R 1 year, 10 months ago

Noticing a trend here alright, every division needs more staff and more resources ...

Tags will be fun, most have no clue about what's about to hit.

I just can't wait to hear the uproar when the other new GA sales taxes kick in.

At least we killed TSPLOST.

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R 1 year, 10 months ago

You gotta LOVE it though; we have to PAY more to COLLECT more from ourselves...

Would it be better to just reverse this process back to square one?

I'm sure glad they are out to SAVE us money; can you imagine what it will look like when they STOP?

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wrighton 1 year, 10 months ago

The last thing this country or county needs is ANOTHER new TAX. State Leg. makes new law to increase revenue and does not give appropriate resources. I hope this is not a money up front deal and down the road they find they cannot maintain and need a bail out. The Tax Commissioner claims it's not a long term commitment. Have we ever seen a government agency offer to give back money? The County needs to tell them we don't have the money and can't provide the service unless they come up with money. Reminiscent of the trash plan.

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CD 1 year, 10 months ago

The new car dealership lobby must have really rolled out the welcome wagon for our fine lawmakers. With typical cynicism, they call it merely a repeal of the birthday tax.

Yep. "Watermelon Wine" Deal and the boys are just looking out for the citizens.

Sadly enough, most of the public does not understand the degree to which they have been hosed.

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Don_Coyote 1 year, 10 months ago

Actually the used car dealerships have pushed for this for years as they feel it is unfair competition for a citizen to agree on a price with another citizen and sell their own car. The "cap" on lobbyists' legal "gifts" should be zero, not $100.

Georgians should also be demanding ethics legislation that would bring more scrutiny on the bribes contributions made to politicians as well. Why does Sen. Balfour require a million dollar campaign fund to run for an office that theoretically pays $17k?

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kevin 1 year, 10 months ago

Hasn't Steele heard about the internet? Why must he add people when all he needs to think about is how to get an app on line for citizens to check the comparable costs themselves. We do NOT need to hire contractors but get the current employees kept busy 8 hrs a day. When I walk into a station, most employees are standing there looking or talking with each other. If the Ga Dept of Revenue already has the software working to do this comparison, I see no reason why this Dept can't use it or get a copy. This is laziness on Steele's part and nothing else. HE has no "modern" ideas about how to run this office. Out you go!

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