State of Georgia: Repeal State of Georgia House Bill 386 Changes, Revisions, and Modifications of OCGA
The changes made to the Vehicle Tax Process by House Bill 386 will end up costing the average Georgia Citizen significantly more money in tax incurred expenses.
- Georgia Governor
We are petitioning our Georgia State Legislators to repeal State of Georgia House Bill 386 Changes, Revisions, and Modifications to OCGA. In times of economic hardship such as the current situation of most citizens of Georgia, this revision of the vehicle tax system will undoubtedly lead to a monetary burden for the majority of the states citizens, instead of a relief, which should be the target of any tax changes given the current economic status of the majority of this states citizens. This bill has burdened the citizens who purchase vehicles frequently because there will be a high upfront title ad volerem tax every time someone purchases a vehicle and has it titled in their name, even when purchased from an individual private seller. These private party sales that were traditionally exempt from being taxed are no longer exempt.
According to Vicki Lambert, the director of local government services and the motor vehicle division for the Georgia Department of Revenue, about 60 percent of car sales in Georgia come from private sales. This sector of the market is also where buyers will find the best deals on vehicles as opposed to paying high dealer prices which reflect all the overhead sales costs dealers have incurred as opposed to private individual sellers with zero overhead sales costs. The vehicle sales from this sector will undoubtedly wain as the majority of this demographic aren’t financially able to go to a dealership and pay $35,000 or more for a new vehicle when they are currently struggling to keep their family fed, clothed, and sheltered. Many of these people decide to make more economical choices and purchase their vehicles from private sellers at a fraction of dealer pricing. These individuals are the ones who replace their vehicles more frequently and they will undoubtedly be the ones who will suffer the greatest from this recent change.
The only group of people with anything at all to gain from this bill is the licensed car dealers of the State of Georgia (which lobbied extensively to get this bill passed and are a very miniscule percentage of the overall Georgia taxpayer population). Any tax change should be one that benefits the greatest number of people paying the tax, and not such a miniscule fragment of the taxpayers such as the fragment the licensed car dealer segment currently retains.
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