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Thursday, February 14, 2013 - 11:40am

Car Tax Tweaked

Updated: 1 year ago.
House lawmakers Thursday tweaked last year’s the tax reform bill to lighten the load on Georgians who lease rather than purchase a car. Car leasers would no longer have to pay a monthly sales tax on the vehicle. (Photo credit: Jeanne Bonner)

House lawmakers Thursday tweaked last year’s the tax reform bill to lighten the load on Georgians who lease rather than purchase a car. Car leasers would no longer have to pay a monthly sales tax on the vehicle.

When lawmakers passed the tax reform bill last year, their aim was to give taxpayers a break.

So they nixed the so-called birthday tax that motorists pay, and replaced it with a one-time car title fee.

Now they’ve aiming to level the playing field for people who opt to lease a car.

Rep. Tom Rice of Norcross drafted the bill. Speaking from the floor of the House, he said the onus would be on the dealerships rather than the customers.

“They will be responsible for collecting the normal title fee rate – 6.5 percent, 6.75 percent, 7 percent," he told fellow lawmakers. "It’s the same parity with what we have for purchased vehicles. The difference is there will be no use tax, no sales tax on that lease payment.”

Lawmakers also tweaked other minor parts of the bill, including eliminating a fee if dealerships transfer a title between different departments.

The bill now heads to the state Senate for a vote.

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