The so-called "birthday tax" that Georgia vehicle owners pay will end in March 2013 – for people who purchase a new vehicle.
Vehicles purchased on or after March 1 and titled in the state will be exempt from sales and use tax and the annual ad valorem tax, according to the Georgia Department of Revenue.
Instead, due to the passage of House Bill 386, these vehicles will be subject to a new, one-time title ad valorem tax that is based on the value of the vehicle.
If you buy a new vehicle where you were paying sales tax on it, now it's called a title tax and is pretty much the same rate.
It's going to be 6.5 percent in 2013, 6.75 percent in 2014, in year three it will increase to seven percent and so on. However, you will not be paying the annual ad valorem tax on that new vehicle.
Another difference in the new law is that it will affect individuals who purchase a vehicle from another individual. The private sales that were traditionally exempt from being taxed will now be.
The tax is based on the fair market value of the vehicle at the time of the purchase or the sales price, whichever is higher.
You will continue to pay the annual ad valorem tax on vehicle(s) that you currently own.
To help residents understand the changes, Cherokee County Tax Commissioner Sonya Little said she will place an outline of the changes, answers to commonly asked questions and a link to the tax calculator on the agency's website.
Other aspects of the new law:
- The new title tax is based on a percentage (6.5 percent in 2013) of the fair market value of the vehicle, not the sales price, as determined by the Georgia Department of Revenue.
- If you purchase a vehicle in Georgia between January 1, 2012, and March 1, 2013, you have the option of paying the new title tax instead of the current annual ad valorem tax. You have from March 1, 2013, until December 31, 2013, to opt into the new program. Note: Vehicles purchased out-of-state are not eligible to opt in.
- All other existing annual vehicle registration requirements, including annual tag renewal fees, decals, and emission tests (if applicable), remain in effect for all vehicle owners.
Will the new Georgia tax affect your decision to purchase a new vehicle? Share your thoughts in the comments below.
For warning my friends this is no reason to think one is better off than another. Ad valorem tax isn't any more or less than this. New verbiage of taxing. Good luck getting it turned around. You can't get ANY politician to do Anything for the people. Laws and taxes they don't apply to them
As to the general class warfare, remember the HOST tax referendum last election, that tax would have increased taxes on the poor while giving tax breaks to the rich.
The reason the legislative delegation is CURRENTLY republican in Cherokee County is because the democrats have yet to find candidates that did not propose even more outlandish tax increases as their platform - as proof read your party's County website.
And tell me what makes you think that the defeat of the HOST was a "bipartisan effort."
Transfer a car to your spouse or child...new tax. Move to Georgia with a $30K car...welcome to GA tax of $1,9500. Two cars, $3,900. Like to buy private-party used cars out of necessity...new tax. Like to lease cars...new tax. As to HOST...Yes we defeated it, but it was fairly close and could easily have gone the other way. One must look at who proposed it, supported it, and actively promoted it. Outlandish Tax Increases? Gimme a break.
I agree HB 386 is a tax increase - you & I do NOT disagree on that point. I define outlandish tax increases to include "revenue neutral" that our republican BOC voted in July, and the previous tax increases heaped on us by both our BOC and BOE. I also believe HOST and TSPLOST fell into the category of outlandish tax increases and I was glad to see the democrats and republican voters recognized the tax increases for what they were - and voted both down.