Georgia Legislature Wants to Tax Private Car Sales
The Georgia Legislature continued to show its contempt for its citizens and support for its corporate sponsors by passing HB 480. This bill will eliminate the sales tax and the annual ad valorem tax on cars purchased in Georgia after the end of 2009. In its place, a 7% fee will be charged for titling the vehicle, with a cap set at $2000.
What’s wrong with this? For one thing, it means that cars costing $28,571 and up all pay the same fee. So the biggest tax breaks go to the most expensive cars, and luxury cars and SUVs are the worst offenders in terms of gas mileage and pollution. Great public policy! Of course this should be expected from one of the states where the Governor is considering rejecting Federal stimulus money because he doesn’t want the state to be held accountable for how it is spent.
Secondly, this new title fee would apply to private sales of used cars. Currently no sales tax is charged. Who benefits from this? Car dealers, and only car dealers. When you sell a used car to a dealer, you pay less than it is worth. When you buy a used car from a dealer, you pay more than it is worth. Private sales benefit both parties involved, but they rarely involve anyone in a position to buy votes, so guess who’s side the Georgia Legislature is on?
Some have expressed concern that this will cause more dealerships to fail because people wait until 2010 to buy new cars. Probably part of the plan. The largest dealerships will have the best chance of riding out the year, and in 2010 there will be less competition and higher prices for everyone.
One law for the rich is alive and well in the state of Georgia Power.
