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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThis is highway robbery by Georgia State legislators. They are forcing people to buy from dealers.
New one-time car tax raises cost of private sales
Georgians who buy used cars from Craigslist, neighbors or friends are about to see the cost of their purchases rise sharply. But buyers who shop at dealerships are in luck.
Beginning March 1, a new law intended to collect taxes from private vehicle sales will mean the upfront cost of registering and titling a car in Georgia will increase for those who dont buy from dealers.
The new one-time tax may change the way Georgians shop for cars by eliminating sales tax savings from private sales.
If you are someone who bought cars from a dealership and held them, youre better off under the new system, almost from day one, said Douglas MacGinnitie, Georgias tax commissioner. If youre someone who buys from a casual sale frequently, youre worse off.
The annual ad valorem tax that Georgia residents pay for their cars on their birthday will disappear for all newly acquired vehicles. It will be replaced by the new one-time title tax that, while higher than the individuals average annual ad valorem bill, could add up to savings for car owners who keep their vehicles for many years.
Timothy Nash of south Fulton County, who plans to buy a car for his 16-year-old son, said hes glad the annual birthday tax is going away. Nash said he buys used cars from dealerships so he can finance his purchase.
http://www.ajc.com/news/news/new-one-time-car-tax-raises-cost-of-private-sales/nTkJc/
"Nash said he buys used cars from dealerships so he can finance his purchase." Do they not have banks and credit unions in GA?
TreasonousBastard
(43,049 posts)dealers have almost infinite sources and can finance just about anyone. At a price.
There are even ignition locks that shut the car off if you don't make your weekly payment.
TreasonousBastard
(43,049 posts)Around here we have a sales tax when a car is sold. If you buy it from a dealer, it's built into the price one way or another. In a private sale, you pay it at the DMV when you register the car.
This is what they are doing down there and it will save you the annual fee and them the administrative expense of collecting the annual fee.
Unless you argue for paying no tax at all, this is a good thing.
(Or, if you are an "unlicensed dealer"