(3/13/09) From The Insider Advantage Georgia: For the second year in a row, the House voted Thursday to do away with the “birthday tax” - the annual ad valorem tax that car owners pay on their cars. And for good measure, the sales tax on cars would be gone, as well, under HB 480, which cleared the chamber 133-39.
He's what the bill does:
Beginning Jan. 1, 2010, you’ll pay no sales tax on that new car and no property taxes, either. But you will pay the lesser of 7% of the purchase price or $2,000, as a title fee. If you choose not to buy a new car for the foreseeable future, you’ll continue to pay the annual “birthday tax” until you replace it.
Backers of the legislation seemed absolutely giddy over the new taxing plan.
“This is a great bill,” said Rep. Tom Rice, R-Norcross, the motor vehicles committee chairman.
Democrats weren’t all that enthusiastic about the measure, although they were unsuccessful in stopping it.
“Sure, it does away with the sales tax; it does away with the ad valorem tax,” said House Democratic Leader DuBose Porter. “It creates a brand new tax. Y’all, this is a tax increase.”
House Republican Leader Jerry Keen acknowledged that taxing casual sales would amount to a tax increase - but it would apply, he said, to “those people who’ve been doing their transactions under the table.”We'll see how this turns out when the 2010 election begin.