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Today, March 1st, vehicle registrations in GA begin to operate under new rules. Most of you live in sates where sales transactions between individuals are taxed. There was no such thing in GA. We did have something called "ad valorem" tax, a tax paid upon renewals, that for a new $25,000 car, for example, was around $400 (in high cost juridictions such as the metro Atlanta area). The ad valorem tax diminished with time but still made tag renewals more expensive that in ony other satate I've lived in. As of today, a registration fee will be imposed to register any vehicle based on the NADA value. 6.5% in 2013, 6.75% in 2014 and 7% in 2015 and beyond. Ad valorem tax will disappear for those registering vehicles today and in the future. The new law protects used car dealers that were required to charge sales tax, while transactions between individual owners were free. It favors new car purchasers, as no sales tax will be charged, just 6.5% of the sale price. It makes used car registration more expensive, about 2.5 times, and the money is due upon registration rather that at renewal. In addition, there is no exception between familiy members. If your grampa passes away and leaves you a 2010 honda civic, (assuming a NADA value of 10,000 for ease of calculation) you will need $650 plus the tag and title fees to get the car in your name. I can't wait to see the public's reaction...
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