New GA tax law: A warning.... | Page 2 | FerrariChat

New GA tax law: A warning....

Discussion in 'South Central - USA (TN, MS, AL, GA)' started by thecarreaper, May 25, 2013.

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  1. parkerfe

    parkerfe F1 World Champ

    Sep 4, 2001
    12,887
    Cumming, Georgia
    Full Name:
    Franklin E. Parker
    You are wrong. Under the new system an owner pays less as you no longer pay the annual ad valorem tax. With my 4 cars and 5 motorcycles my ad valorem tax bill was almost $4k A YEAR! Under the new system, it would be $180.
     
  2. parkerfe

    parkerfe F1 World Champ

    Sep 4, 2001
    12,887
    Cumming, Georgia
    Full Name:
    Franklin E. Parker
    #27 parkerfe, May 27, 2013
    Last edited: May 27, 2013
    Most do not understand the advantage of the new law. Under the new law in Georgia, your annual 308 tag would only cost you $20; that would save you over $900 a decade. I do like the no state income tax in TN.
     
  3. Thomas Magnum

    Thomas Magnum F1 Veteran
    Owner

    Feb 24, 2013
    8,034
    Full Name:
    Mark
    Franklin, you work for the IRS?

    Just kidding. I'm never coming back to Georgia for lots of reasons but if you're happy with your new law, I'm happy for you. Enjoy your "benefits" on all those good roads. Drive safely!

    I have to ask though, is GA just smarter than the rest of the states? They're raising revenue by lowering car fees? Closing a loop hole if you will? I don't buy it but hope it works for my Georgia friends. I guess most are just too ignorant (like me) to understand how GA lawmakers and the DMV are doing something productive.

    Mark
     
  4. henryr

    henryr Two Time F1 World Champ
    Silver Subscribed

    Nov 10, 2003
    21,651
    Atlanta
    Full Name:
    Juan Sánchez Villa-L
    Actually no. Old cars stay under the old system unless you "opt in" and pay the VATV.......Otherwise you'll continue to pay ad valorem.
     
  5. thecarreaper

    thecarreaper F1 World Champ
    Silver Subscribed

    Sep 30, 2003
    17,564
    Savannah
    Not correct. I only bought from individuals. Always, just like ScaleDetails.

    I never bought from dealers. I paid the ad velor um on average of around $200.00. 308, Pantera, Lotus, Porsche, ...They were all about the same. Now..... I have to pay over a thousand dollars per car, regardless if i buy from a dealer or a person in State or out of State.

    So I never spent this much on 1 car under the old system, and I made a choice to never buy cars from dealer, ever. There has been A LOT of talk about this at my job, the coffee shops, the gas stations, the car clubs. The people don't like this. And its the people with money that keep the economy moving that don't like it.

    They are going to LOOSE money because those of use who don't have to buy these, will not.

    I can buy coins, guns, guitars, whatever.

    I am not going to pay even more taxes for the lazy do-nothings to live off of.
     
  6. henryr

    henryr Two Time F1 World Champ
    Silver Subscribed

    Nov 10, 2003
    21,651
    Atlanta
    Full Name:
    Juan Sánchez Villa-L
    this was payola to the dealers... plains and simple.

    have they "fixed" the lease error yet ?
     
  7. Scaledetails

    Scaledetails F1 Rookie
    Owner Silver Subscribed

    Nov 19, 2003
    4,205
    Daytona Beach, FL
    Full Name:
    Stephane


    +1. We get taxed even on private sales, which wasn't the case before this new law. Dealer or not we still have to pay. Needless to say I have done a few contributions lately, and to see where my money is going really hurts. Some of us work hard for it.
     
  8. kayakjack

    kayakjack Karting

    Mar 29, 2004
    142
    A question... Is this new tax in addition to sales tax, or in lieu of sales tax?

    A comment... Looks like you pay less tax with the "new" system if you keep cars a long time. Make a one time high payment, no annual Ad Valorem tax. Looks like you pay more tax with the "new" system if you keep cars a short time. Big up front tax - you don't own the car for many years to enjoy not paying Ad Valorem tax. Does that make sense? If so, I wonder what the "cross over" point is regarding the time of ownership?

    If this makes sense, folks like Car Reaper are screwed. Hard to make financial sense if you keep cars a short period of time.

    Dealers in favor of this to make folks pay tax on private sales? Might backfire. People might keep cars longer without trading to avoid heavy up front tax.

    Jack
     
  9. thecarreaper

    thecarreaper F1 World Champ
    Silver Subscribed

    Sep 30, 2003
    17,564
    Savannah

    The ad-velor-um tax was around $200 per year for most of the cars I bought: 89 Lotus Esprit, 84-89 Porsche 911, pre 89 Ferrari. So the $1400 I just spent on an 86 328 is almost 7 years of of old ad-velor-um. I don't keep cars but a year, at best.

    So yes, guys like me are screwed, and yes, i am going to pull my money from the economy and find something else to do, and / or stick with older, cheaper cars.


    I wanted a Lotus Exige or a Maserati Gran Turismo when i graduate with my BS degree.

    Not going to buy one now. I refuse to give these State of Georgia idiots even more "tax" money to piss away.
     
  10. parkerfe

    parkerfe F1 World Champ

    Sep 4, 2001
    12,887
    Cumming, Georgia
    Full Name:
    Franklin E. Parker
    Correct. But, the only reason not to opt in would be if you plan to resell your car within the next year.
     
  11. parkerfe

    parkerfe F1 World Champ

    Sep 4, 2001
    12,887
    Cumming, Georgia
    Full Name:
    Franklin E. Parker
    #36 parkerfe, May 28, 2013
    Last edited: May 28, 2013
    Correct. The new law will only affect people who only buy from individuals. And,that is the exact problem the new law was designed to correct. Now, every buyer will be treated and taxed the same whether they buy from a dealer or individual. Why should the citizen who bought his used F150 from a dealer pay 6.5% whereas a citizen who bought his used F150 from a guy off Craigslist not pay the same 6.5%? Isn't fairness what we want from our city, county, state and Federal governments, part of which includes all citizens to be treated equally? And coffee shop antidotals are hardly what our tax system should be based on. The new law simply treats Georgia citizens the same, which is the fair way to tax no matter who you are. If the IRS taxed everyone the same, our Federal government wouldn't be over $15trillion in debt.
     
  12. parkerfe

    parkerfe F1 World Champ

    Sep 4, 2001
    12,887
    Cumming, Georgia
    Full Name:
    Franklin E. Parker
    If that is the case, then the old law was payola to individuals.
     
  13. parkerfe

    parkerfe F1 World Champ

    Sep 4, 2001
    12,887
    Cumming, Georgia
    Full Name:
    Franklin E. Parker
    That would only be true if you only buy very inexpensive cars where your ad valorem over the years of ownership would be less than the 6.5% title fee. Not so for most of us on FerrariChat who buy high line cars such as BMW, Porsche, Benz, ect...
     
  14. parkerfe

    parkerfe F1 World Champ

    Sep 4, 2001
    12,887
    Cumming, Georgia
    Full Name:
    Franklin E. Parker
    And how was that a fair way for the government to levy taxes? Do we really want the government to levy taxes based on the status of the seller?
     
  15. parkerfe

    parkerfe F1 World Champ

    Sep 4, 2001
    12,887
    Cumming, Georgia
    Full Name:
    Franklin E. Parker
    The new 6.5% title fee is in lieu of the 6% to 7% sales tax you used to pay.
     
  16. kayakjack

    kayakjack Karting

    Mar 29, 2004
    142
    So, if I understand this correctly, the material change is to tax private sales.

    The other change is... if I buy from a dealer, my upfront tax is not changed (much), but the ad valorem tax is eliminated.

    I am trying to make sense of this. Do these two comments make sense?

    Jack
     
  17. parkerfe

    parkerfe F1 World Champ

    Sep 4, 2001
    12,887
    Cumming, Georgia
    Full Name:
    Franklin E. Parker
    That is correct. If you go buy a car today, you will pay a 6.5% title fee on the sales price and from then on you will pay $20 per year to renew your tag.
     
  18. kayakjack

    kayakjack Karting

    Mar 29, 2004
    142
    Thanks. I get it.

    Jack
     
  19. xamfed

    xamfed Karting

    Oct 13, 2010
    72
    Midtown ATL
    Full Name:
    Brett Federico
    Having moved here from MI, you guys still have it easy.

    There you pay 6% on all purchases, there is no benefit for trades, and the yearly plate fee is about $200. MI also has the worst roads in the country, and that tax is supposed to pay for road improvements. The $0.41 per gallon gas tax there hurts also.
     
  20. BT

    BT F1 World Champ
    Lifetime Rossa

    Mar 21, 2005
    15,291
    FL / GA
    Full Name:
    Bill Tracy
    Not that it makes any difference for people who have been living here, but for new residents the change is that you pay the 6.5-7% fee to title your car instead of the old ad valorum tax. I guess it will encourage people to keep their dual residencies...

    :)
    BT
     
  21. kayakjack

    kayakjack Karting

    Mar 29, 2004
    142
    Interesting. However, what about this...

    Say you take a homestead exemption on your Georgia home. Reduces your Georgia real estate taxes. You keep you Florida car titled in Florida. Then Georgia finds out about your Florida car and home. Takes away your homestead exemption. You pay more Georgia real estate taxes. I do not know what the law is regarding all this. I do suspect that if Georgia is entitled to more taxes because of this, they will ferret out the facts.

    Jack
     
  22. Dr Tommy Cosgrove

    Dr Tommy Cosgrove Three Time F1 World Champ
    Owner Rossa Subscribed

    May 4, 2001
    35,282
    Birmingham, AL
    Full Name:
    Tommy
    Those roads and government services are ONLY funded by the tax from the sale of a used car?

    What are they doing with all that income tax, payroll deductions and sales taxes they collect from the same guy buying the used car? Because he would argue that he has been paying out the ass for those services from day one with or without that used car he just bought.
     
  23. mibi

    mibi Karting

    Apr 20, 2010
    245
    Atlanta
    Full Name:
    Michael
    actually the 6.5% is not on SALES price but on what the DMV in GA values it at. so you can go to website and see what it will cost. type in your VIN. a 2008 612 I was looking at is valued at less than what Id have to pay to get it. if trade a car, it still reduces the tax liability so you only pay on the net

    Georgia Department of Revenue
     
  24. Thomas Magnum

    Thomas Magnum F1 Veteran
    Owner

    Feb 24, 2013
    8,034
    Full Name:
    Mark
    Exactly. I had my Joe the Plumber moment debating this with Franklin. My concern is with his five cars and four motorcycles, SOMEONE is going to say he needs to spread his wealth around a little and make it more "fair." There are people out there with no cars or motorcycles. That ain't right. LOL.
     
  25. Dr Tommy Cosgrove

    Dr Tommy Cosgrove Three Time F1 World Champ
    Owner Rossa Subscribed

    May 4, 2001
    35,282
    Birmingham, AL
    Full Name:
    Tommy
    Not to mention that the folks with an 85 or older get special treatment. They use the same roads and services too, don't they? Either you drive on the roads or you don't, so why does the 1984 308 owner get something for nothing and the 86 328 has to pay more?

    I would think that is just a tad arbitrary... Seems like that would be really pissing some people around here off to hell and back. Wonder why it doesn't?
     

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