Rice: Car 'Birthday Tax' Bill Good For Dealers, Buyers

Backers of a House plan passed on Thursday to cancel the annual so-called car birthday tax, say a majority of Georgians support them.

H.B. 480 replaces the current car registration tax with a one-time, seven-percent title fee.

The fees would help fund the state's ailing trauma care system.

Republican House Motor Vehicles Chairman Tom Rice of Norcross says the bill's a good deal for car buyers, and would also help revive a sluggish car market:

"There are about 1.8 - 1 point 8.5 million transactions in 2008, cars and other vehicles, so we think that obviously a goodly number of those should be supportive of this legislation because, either one way or another, their not going to pay ad valorem, or not pay sales tax - or not pay both."

Responding to comments by Governor Sonny Perdue calling the bill, "convoluted," Rice says the legislation will be tweaked before it goes before the Senate in the next few weeks.

Click here for more GPB News coverage about H.B. 480.

Lawmakers Blow Out Candles on Birthday Tax

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.

"Anybody that buys a car off the lot, is gonna gain dollars back as soon as they drive it off the lot."

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.

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.

Click here to listen to this story.

Crossover Day Winners

A controversial measure that would treat an embryo as a person passed the senate yesterday. The bill would prohibit Georgia embryos from being used for stem cell research. It would also treat an embryo legally as a child.

And the state House passed a bill that allows for the adoption of an embryo. Supporters say the bill is needed to avoid lawsuits over disputed adopted embryos, but opponents like say it could lead to the recognition of an embryo as a person.

Other bills that passed yesterday include

A plan to eliminate the so-called birthday tax on cars the measure would instead require car owners to pay a one-time fee of up to $2,000 or seven percent of the car’s value.
Teens caught using a cell phone while they drive could get the same punishment as drivers caught with an open container.

A salary bonus for teachers with national board certification would continue for at least this year under a house bill that passed. But it would leave the program open to changes in the future.

Businesses would get a $500 credit toward the unemployment tax and a $2,400 income tax credit for each new employee they put to work and retain for at least two years

And if you buy a house in the next six months, you could get a $3600 dollar tax credit under a bill that passed the house. Lawmakers hope to reduce Georgia’s growing inventory of unsold homes.