If you are in the market to buy a used Lamborghini, it will not take long to figure out that there are not many authorized Lamborghini dealerships in the US. Right now there are only 24. Each year we gain … Continue reading →
Over the course of the next year there are huge changes coming to the tax policies on cars in the state of Georgia. Beginning on March 1, 2013 there will no longer be any sales taxes charged on new or used cars in Georgia. Sales taxes will be replaced with a new 6.5% title in tax in 2013 which will increase to 6.75% in 2014. This will apply to both dealership and private party purchases.
The title tax is not due every year and Ad Valorem taxes are being eliminated on cars purchased after March 1, 2013. You will continue to pay Ad Valorem taxes on any cars that you currently own.
The title tax will be charged on a fair market value, not the sale price. We have no idea how this will be determined.
If you purchase a car between January 1, 2012 and March 1, 2013 you will have the opportunity to opt-into the program after it begins on March 1, 2013 (but before December 31, 2013). You will have to pay the difference between the sales tax that you paid when you purchased the car (if you live in a 6% county).
You will still have to get an annual emissions inspection in counties where it is currently required. Tag renewal fees are also still going to be charged.
The biggest difference between the new program and the current sales tax structure is that there are no trade credits anymore. The title tax will be assessed on the vehicle value, not the net cost after trades are included.
What does this mean for you? Between now and March 1st of next year you should trade your car in to get the last chance at a discount of registration taxes. We will be able to give you the same trade credit towards sales tax that we always have until then. You will have to pay an annual ad valorem tax for as long as you own the car but that will be much less than the sales tax would have been on your entire purchase in most cases.
It is going to be a major change but we will do our best throughout the process to keep you informed and offer you the most beneficial options available.
As we saw in the discussion of Lamborghini Murcielago Production Numbers a few months ago, there are many of them anywhere. Here in Atlanta, they are extremely scarce. These are the 2007-2009 version of the Murcielago.
Yesterday we had another great Motorcars of Georgia Mountain Run. We had 18 cars including 2 Lambos, 2 Astons, 2 Ferraris, 2 Lotuses, 3 Porsches, 4 BMW’s, a Viper, a Maserati, and an E63 wagon. It was a great group … Continue reading →
It was about time for our quarterly mountain drive at Motorcars of Georgia and we couldn’t have asked for more beautiful weather than Sunday. We had out best turnout yet with 19 cars and some great new faces to our … Continue reading →
Georgia State House Bill 386 passed on Tuesday and is expected to meet very little resistance in the Senate vote today. It is a 50 page bill that sets out to change almost every facet of taxation in the state of Georgia. It will impact everyone living in Georgia but one of the most significant areas of impact will be the taxation of motor vehicles.
Georgia is one of very few states that currently offers a sales tax exemption for the purchase of a pre-owned car from a private owner. That means that if you buy a car that is currently registered to a private individual (not leased, not in a company name) then you would not pay sales tax on it upon registration. That policy will end with the passing of this bill. Additionally, and most triumphantly, Ad Valorem tax will end in the state of Georgia. The added revenue from a flat sales tax applied to all vehicles sold will make up for the deficit. The flat tax rate will begin at 6.5% and potentially increase to 7% in 2014.
Ad Valorem taxes as well as some other taxes that are done away with in the bill go directly to fund local governments and county budgets in Georgia. There will be approximately $217 million dollars in revenue lost from the removal of these taxes to the local governments but the state will share the new revenue from other areas.
If signed into law, the bill would go into effect partially in August and then entirely in March of next year. For cars owned prior to that date, owners will still continue to pay Ad Valorem Tax each year. For any car sold after that date, the new rules apply. This will inevitably be a big change for us all here but it streamlines the taxation policy for us. I am definitely a big fan of that (and not getting a $1,200 bill each October for the Gallardo tag!).
Recently we provided two cars for the Georgia Aquarium’s annual Ocean’s & Autos display. They were certainly in great company. The fish were very hospitable and the other cars were a great mix of history. Check out the pictures of … Continue reading →
This weekend was our quarterly mountain drive. We had an awesome and diverse turnout of cars and a great drive. There was one group pullover with an inspirational speech from a state trooper (and no citations), a small bear spotting, … Continue reading →