Lawmakers in the state House Thursday voted to eliminate two taxes, including the so-called Birthday Tax, when buying a car.
The annual ad valorem tax, along with the state sales tax, would be replaced with a 7 percent fee whenever a car's title changes hands. The fee would be capped at $2,000.
Republican Tom Rice from Norcross says under the proposal, people will save money when buying at the dealership.
The annual ad valorem tax, along with the state sales tax, would be replaced with a 7 percent fee whenever a car's title changes hands. The fee would be capped at $2,000.
Republican Tom Rice from Norcross says under the proposal, people will save money when buying at the dealership.
Supporters say the measure would help bring in more money to the trauma-care network across the cash-strapped state. They also say it makes buying from a dealer fair, because no sales tax is collected when buyers purchase from an individual."Anybody that buys a car off the lot, is gonna gain dollars back as soon as they drive it off the lot."
But that has House Minority Leader Dubose Porter from Dublin concerned. He says the fee could burden those who are already hurting.
"We're creating a brand new tax that's gonna generate a heck of a lotta new money off of working folks in this state."If the bill does become law, the tax won't go away for current car owners until they buy another one.
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