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Monday, April 22, 2013 - 5:50am

New Car Tax Creating Confusion

Updated: 1 year ago.
Georgia's new automotive tax law is creating confusion in car deals, and companies, private individuals and courthouse officials are all struggling to under the new requirements. (Photo Courtesy of State of Georgia.)

Georgia's new automotive tax law is creating confusion in car deals.

Companies, private individuals and courthouse officials are all struggling to under the new requirements.

The new title ad valorem tax does away with sales tax on automobiles. It imposes a 6.5 percent tax on every car purchase, even those between private individuals, which were exempt under the old system.

Fairway Ford general manager Mike Combs said there's little training available on how to handle the transactions.

Jenny Bales of the Columbia County tax office said dealers are confused about how the tax works. She said tax office workers are fixing lots of errors.

President Bill Morie of the Georgia Automobile Dealers Association said lawmakers may need to fix problems with the law.

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