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      10-06-2014, 09:55 PM   #1
Mbdurham17
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So I just moved back to Atlanta from SC (charleston) and apparently with the new non ad velorum (birthday tax) setup they want me to pay 6k +\- sales tax to get a plate even though I paid sc sales tax when I bought the car. The tax rate is on the full assessed value even on a lease (not the leased amount). Will probably only keep it another year max and my lease is up in 2. Under the old system I would have paid about 1k a year.

Just fair warning for anyone moving to Ga apparently they are working on a fix but who knows when that will happen if ever.
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      10-06-2014, 10:00 PM   #2
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You gotta be kidding. That's highway robbery! Dude, I would move back out of GA if I were you. Lol!
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      10-06-2014, 11:13 PM   #3
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Originally Posted by Mbdurham17
So I just moved back to Atlanta from SC (charleston) and apparently with the new non ad velorum (birthday tax) setup they want me to pay 6k +\- sales tax to get a plate even though I paid sc sales tax when I bought the car. The tax rate is on the full assessed value even on a lease (not the leased amount). Will probably only keep it another year max and my lease is up in 2. Under the old system I would have paid about 1k a year.

Just fair warning for anyone moving to Ga apparently they are working on a fix but who knows when that will happen if ever.
Yea this is why most car collectors in GA have homes in South Carolina.

I register my car in Montana. If Georgia wants to be greedy then they get nothing!
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      10-07-2014, 10:07 AM   #4
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Yep I have a few other options for states to register which I am definitely going to do. They are crazy
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      10-07-2014, 10:32 AM   #5
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Yep I have a few other options for states to register which I am definitely going to do. They are crazy
7% is a ridiculous tax rate on a car. The dealer puts capital at risk, manages the job and still they do not make 7%. Govt wants 7% for nothing. I hate the state government - they are the most useless human trash I know.
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      10-07-2014, 10:50 AM   #6
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I'm glad they got rid of the birthday tax. I had just paid it on my wife's old car before the lease ended, then we turned the car in maybe a month later. I called the county and they basically said too bad. So I paid the yearly tax for just one month.
However, the new tax is also a problem. I traded in my M3 when I pruchased the M5 and just paid tax on the difference. But if you like to lease cars and get a new one overy couple of years then GA is not the state for you. You will pay the full tax every time.
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      10-07-2014, 06:42 PM   #7
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Also, if you lease the car then you pay this tax and if you want to buy at the end of the lease you pay the tax again. Though on the second time it is for the residual value of the car at that time.
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      10-07-2014, 08:48 PM   #8
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Wow. This is ridiculous. I suspect it's just another way for state governments to try and recoup shortfalls that have resulted from lower federal government subsidies. This, of course, in addition to writing more speeding tickets! Hopefully, someday politicians will wake up and realize the successful, working and/or financially secure cannot continue to carry the every increasing majority who are not.
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      10-08-2014, 09:00 AM   #9
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Wow. This is ridiculous. I suspect it's just another way for state governments to try and recoup shortfalls that have resulted from lower federal government subsidies. This, of course, in addition to writing more speeding tickets! Hopefully, someday politicians will wake up and realize the successful, working and/or financially secure cannot continue to carry the every increasing majority who are not.
The whole thing is a fucking racket. It also forces you to do dealer trades which is partly what allows dealers to totally gouge you. I normally find a $10k spread between what dealer offers on trade and what I sell my cars for privately.

But here is what is most egregious:

If I buy a car for $100k and register it in GA, I pay $7000 sales tax.

Then I sell it a year later for $85k privately. So the cost of that car for the year is $15k, however I have paid $7000k tax for the privilege of owning it for a year. So the 7% tax rate is an effective tax rate of 45% in my case. That is insane! And if I do a trade to limit my tax exposure, it doesn't help because the money goes to the dealer.

This is why I created an LLC to buy and sell cars via the state of Montana. It literally halfs the TCO of the car and I am happy to pay the annual tag fee of ~$300 to Montana.
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      10-08-2014, 09:03 AM   #10
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Also, if you lease the car then you pay this tax and if you want to buy at the end of the lease you pay the tax again. Though on the second time it is for the residual value of the car at that time.
Yes in this instance you would be double taxed on the car.

I find this sort of thing so annoying, if I could get away with it, I would round up every state legislator and burn them alive (hope my significant other doesn't read this - she's a humanitarian)
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      10-08-2014, 09:50 AM   #11
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Originally Posted by stealth.pilot View Post
The whole thing is a fucking racket. It also forces you to do dealer trades which is partly what allows dealers to totally gouge you. I normally find a $10k spread between what dealer offers on trade and what I sell my cars for privately.

But here is what is most egregious:

If I buy a car for $100k and register it in GA, I pay $7000 sales tax.

Then I sell it a year later for $85k privately. So the cost of that car for the year is $15k, however I have paid $7000k tax for the privilege of owning it for a year. So the 7% tax rate is an effective tax rate of 45% in my case. That is insane! And if I do a trade to limit my tax exposure, it doesn't help because the money goes to the dealer.

This is why I created an LLC to buy and sell cars via the state of Montana. It literally halfs the TCO of the car and I am happy to pay the annual tag fee of ~$300 to Montana.
Also the reason why I keep my cars registered in South Dakota. In Montana you have to create an LLC, there is no sales tax, but higher yearly registration fees. In South Dakota, there is a 3% sales tax for new vehicles, but my yearly registration on an M5 is $60 bucks a year and you don't have to have an LLC. Most states don't have laws that say you must register your vehicle in that state if you live or work there, but some do, so you gotta check the specific state laws. Being active duty military or a U.S. Diplomat with a Black Passport, exempts you from having to register your vehicle in any state you currently live in. Georgia is crazy though, and I thought California with their yearly licensing fee was bad, but even compared to the yearly property tax bullshit of Virginia and North Carolina, California is not the worst.
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      10-08-2014, 11:09 AM   #12
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Quote:
Originally Posted by Mbdurham17 View Post
So I just moved back to Atlanta from SC (charleston) and apparently with the new non ad velorum (birthday tax) setup they want me to pay 6k +\- sales tax to get a plate even though I paid sc sales tax when I bought the car. The tax rate is on the full assessed value even on a lease (not the leased amount). Will probably only keep it another year max and my lease is up in 2. Under the old system I would have paid about 1k a year.

Just fair warning for anyone moving to Ga apparently they are working on a fix but who knows when that will happen if ever.

If I am not mistaken, you can still opt for the ad valorem tax to be done on a yearly basis instead of all at once depending on your specific situation, purchase date, etc. I would do a little research on it, many times the morons at the DMV are wrong.

http://onlinemvd.dor.ga.gov/Tap/faqs.aspx
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      10-08-2014, 12:37 PM   #13
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Quote:
Originally Posted by ///M3THOD
Quote:
Originally Posted by Mbdurham17 View Post
So I just moved back to Atlanta from SC (charleston) and apparently with the new non ad velorum (birthday tax) setup they want me to pay 6k +\- sales tax to get a plate even though I paid sc sales tax when I bought the car. The tax rate is on the full assessed value even on a lease (not the leased amount). Will probably only keep it another year max and my lease is up in 2. Under the old system I would have paid about 1k a year.

Just fair warning for anyone moving to Ga apparently they are working on a fix but who knows when that will happen if ever.

If I am not mistaken, you can still opt for the ad valorem tax to be done on a yearly basis instead of all at once depending on your specific situation, purchase date, etc. I would do a little research on it, many times the morons at the DMV are wrong.

http://onlinemvd.dor.ga.gov/Tap/faqs.aspx
You could only do that right when it was introduced now there is no choice
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      10-08-2014, 12:39 PM   #14
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Quote:
Originally Posted by stealth.pilot
Quote:
Originally Posted by ///M5ForWin View Post
Wow. This is ridiculous. I suspect it's just another way for state governments to try and recoup shortfalls that have resulted from lower federal government subsidies. This, of course, in addition to writing more speeding tickets! Hopefully, someday politicians will wake up and realize the successful, working and/or financially secure cannot continue to carry the every increasing majority who are not.
The whole thing is a fucking racket. It also forces you to do dealer trades which is partly what allows dealers to totally gouge you. I normally find a $10k spread between what dealer offers on trade and what I sell my cars for privately.

But here is what is most egregious:

If I buy a car for $100k and register it in GA, I pay $7000 sales tax.

Then I sell it a year later for $85k privately. So the cost of that car for the year is $15k, however I have paid $7000k tax for the privilege of owning it for a year. So the 7% tax rate is an effective tax rate of 45% in my case. That is insane! And if I do a trade to limit my tax exposure, it doesn't help because the money goes to the dealer.

This is why I created an LLC to buy and sell cars via the state of Montana. It literally halfs the TCO of the car and I am happy to pay the annual tag fee of ~$300 to Montana.
So the. LLC in Montana may be an option. Do you have a Montana drivers license as well? I am thinking of registering it Florida (family beach house there) so I have homestead requirements
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