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LETTERS: New title tax a bad deal

Did the state legislators and governor actually use the gray matter in their skulls when they enacted the new 6.5 percent title tax?

Do the math yourself. On a $40,000 car, the sales tax at 6 percent is $2,400 and the 6.5 percent title tax is $2,600. What's that going to do to your loan payment? How much will the additional interest add to your loan amount?

Just another money grab by those folks. Instead of cutting government expenses, they reach their hands into our pockets once again. I know this, I'm not buying anymore cars, I will just keep mine serviced and repaired and keep the $5,000 in my pocket.

-- Kurt Wegener

Lawrenceville

Comments

R 1 year, 6 months ago

A line from the movie "Taken" seems to fit so nicely: "Good Luck"

But look on the bright side, when they pass a fixit revision for the lease fees issue, they’ll introduce the mandatory PeachPass requirement for every car tag…

Surprise!

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Jan 1 year, 6 months ago

Obviously some false information/incomplete information floating around. Here are sources that might help reduce the confusion:

http://motor.etax.dor.ga.gov/motor/DealerSection/forms/pdf/MV_%20Dealer_Tax_Guide_2013.pdf

http://onlinemvd.dor.ga.gov/Tap/welcome.aspx

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Karl 1 year, 6 months ago

Kurt, it looks like you are the one needing to exercise the gray matter in their skull before writing letters to the editor. The new title tax REPLACES the current sales tax as well as replacing the yearly ad valorem tax.

For most folks, it will be a savings. The exception to that is if you buy a new car every couple of years.

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Why_not 1 year, 6 months ago

I would love to take advantage of this on all my vehicles. It's a good deal unless you trade cars every couple of years.

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Jan 1 year, 6 months ago

The bad deal is for those that choose to sell their car and buy from an individual. By doing a trade-in at a dealer, your tax is calculated to be only on the difference in value of the trade-in and the purchased vehicle. This means you can pay less taxes by trading in your old car rather than a private sales.

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Don_Coyote 1 year, 6 months ago

And you have the Georgia Automobile Dealers Association, their lobbyists and your legislators to thank for this poorly written legislation. They are already having to amend it in this session because they screwed those that lease too much. The worst part on individual sales is the hoops you have to jump through if you paid less than the state determines the vehicle is worth. Also I've not seen what it means to the counties that were collecting a SPLOST on the old sales tax sale that is no longer there.

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kevin 1 year, 6 months ago

that calculation remains to be seen. I hope you are right but I don't see it explained that way in the law.

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cwkimbro 1 year, 6 months ago

Kurt,

You are getting some things right and some things confused.

The sales tax already existed and is being replaced with this tax. That means the tax is only going up $200 and it eliminates the ad valorem tax on the life of the car.

If you buy new and hold on to your car for years this is a huge tax decrease.

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Mack711 1 year, 6 months ago

This is an attempt to get more sales tax on the private sale of all vehicles in the state. Many years ago they tried to do collect sales tax on private sales and did away with that law as they may do with this one. When large companies get wind of this new law they may not think that they want to do business in this state. Employees who transfer into the state will have sticker shock. The state will control the amount of tax paid based upon their calculations of a 'fair market value', not what was actually paid. This will also prevent me from giving a vehicle to say a child or relative or even a non profit without them paying for an excessive tag and title fee. Just bad for business all the way around.

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Mack711 1 year, 6 months ago

Take note that on the homepage of the GDP that they are already reworking this law to fit certain situations, this tells us that it never was thought out to well to begin with. It will go back to the old system as soon as they figure out a way to get more tax money out of it. They will add on a sales tax in the next few years.

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genew 1 year, 5 months ago

I have a question to ask of our brain dead legislators: What about a person transferred to Georgia for a year or so? They are required to re-title their car, right? And they pay this extra high tax even though they may be here for only a year, possibly less, if they need to buy a new car? I guess just another instance of politicians automatically signing legislation they have never read. Or perhaps auto dealer lobbyists have "scored".

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