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View Full Version : Beware – New car tax regs in Georgia



Dangermouse
02-26-2018, 12:34 PM
The fantastic GA legislature has just passed a new amendment affecting the sale of used cars, or more specifically the titling of them.

A couple of years ago, under pressure from the Used Car lobby, they introduced ahem, I mean a “title fee” on the titling of all used cars. This was done because of the rise of craigslist etc where people like you and I could rampantly sell a car to each other without having to deal with “used Car Dealers” and thereby “doing them out of business”.


This “title fee” was unsurprisingly the same %age as a sales tax would be, i.e. 7% (started at 6 and has now risen). This fee was based on their internal blue book value for all cars, in the case of an 81 DeLorean, the value was $6700 and therefore the fee was $483. And this is per title, with no pro-rata refund. This also applied to owners from other states who moved to GA and applied to get a GA title. You too would have to pay $483, but ironically you wouldn’t actually get a title as GA doesn’t issue titles to cars over 25 years old.



So in 2017 the New Car lobby objected as they had to pay a sales tax on the actual cost of the car and used car dealers did not. So they have now changed the system whereby the Title Fee is 7% of the actual sales cost of the car, or the DMV blue book, whichever is higher (naturally). Therefore if I had bought Ben’s car for $40k, I would have paid a “Title Fee” of $2800. If I then sold it to Ron for $40k the next week, he too would have to pay $2800 to the state.

Owner’s moving from out of state get a break though; it’s only 4% on the sales cost of a car that you already own !!!

https://www.myajc.com/news/state--regional-govt--politics/georgia-house-votes-increase-used-car-taxes/QFDCoMKggQLDyQjFHFA8pK/

Bitsyncmaster
02-26-2018, 12:53 PM
Do you need to change a title when you move? I thought the title just shows ownership no matter where it was issued.

DavidProehl
02-26-2018, 02:22 PM
Do you need to change a title when you move? I thought the title just shows ownership no matter where it was issued.It may be different in some states, but generally yes, a car needs to be titled in the state you have your residence. I've had to re-title my cars between my moves back and forth from Minnesota to California. States want to know what cars need license plates on them and where to send the bills. I tried to keep my DeLorean titled in MN when I moved to CA since I knew it was temporary, but MN wouldn't allow it. I suppose you could keep an address on file with the state you are registered in as long as you could still get the mailings from the DMV asking for registration fees, but at least in MN that is frowned upon.

Bitsyncmaster
02-26-2018, 04:35 PM
When I moved to Maryland, I never had to get a new titles to get new registration (plates).

mr_maxime
02-04-2019, 06:49 PM
Moved to GA in Jan so I'm about to get hit with this. My registration says my Mazda protégé is valued at 390 but I paid 68 in taxes.

I guess I won't be driving for the DeLorean for a while.

mr_maxime
02-06-2019, 06:18 PM
Turns out they don't have the actual value of Deloreans in the system. I told the lady what I paid for it and somehow it was only $215 in taxes

TGGreene
02-07-2019, 06:41 PM
I don't know if it was a mistake or what, but in Middle GA they only charged me $18 to transfer the title. With a custom tag it was only $168 total, thank goodness. After following this thread I was expecting to be raped raw.

Ron
02-07-2019, 08:20 PM
Turns out they don't have the actual value of Deloreans in the system. I told the lady what I paid for it and somehow it was only $215 in taxes
Odd -- It comes up in their Title Ad Valorem Tax (TAVT) caculator (https://onlinemvd.dor.ga.gov/TAP/Welcome.aspx).

59199

mr_maxime
02-07-2019, 11:01 PM
Odd -- It comes up in their Title Ad Valorem Tax (TAVT) caculator (https://onlinemvd.dor.ga.gov/TAP/Welcome.aspx).

59199

Weird. Doesn't look like the website I saw. It didnt have a value for my VIN and it sent me to the NADA website to get a value.

Parzival
02-12-2019, 11:39 PM
I had to pay about 2700 dollars in sales Tax when I registered my car here in Florida.