akirby Posted April 13, 2020 Share Posted April 13, 2020 31 minutes ago, ice-capades said: There is a sales tax credit for trade-ins. We used to have 7% sales tax in most areas (6% state, 1% local) plus an annual ad valorem tax that would be several hundred dollars on a newer expensive vehicle. And you got the sales tax credit for tradeins. No sales tax on private sales. A few years ago GA switched to a single ad valorem tax of 7% but no credit for trade-ins. And because it's not sales tax you have to pay the full 7% up front for a lease whereas before you only paid sales tax on your payments. And you pay it when you register a used vehicle for the first time based on the value. It's simpler and cheaper if you purchase the vehicle and keep it a long time. If you buy cars frequently or lease it's more expensive. 1 Quote Link to comment Share on other sites More sharing options...
RedHoncho01 Posted April 29, 2020 Share Posted April 29, 2020 On 11/19/2019 at 12:19 PM, akirby said: In GA when we had sales tax you didn’t pay sales tax on the trade in amount. If you got $10k on your trade in you’d have to sell it for $10,700 to break even. I don’t think that applies to the new ad valorem tax. The ad velorem tax made your license plate fees very high depending on what vehicle you had, the model year, etc. based upon their own valuation of your vehicle, not KBB or any other industry valuation method. Our 5-year old Toyota Highlander Sport cost us around $365 per year for license plates. There was no way to dispute the valuation the state put on your vehicle. You just at to pony up the dollars or you got no license plates. Quote Link to comment Share on other sites More sharing options...
akirby Posted April 29, 2020 Share Posted April 29, 2020 6 minutes ago, RedHoncho01 said: The ad velorem tax made your license plate fees very high depending on what vehicle you had, the model year, etc. based upon their own valuation of your vehicle, not KBB or any other industry valuation method. Our 5-year old Toyota Highlander Sport cost us around $365 per year for license plates. There was no way to dispute the valuation the state put on your vehicle. You just at to pony up the dollars or you got no license plates. And it varied tremendously from county to county. Fulton county could be $100 higher or more per vehicle. At least now it's standardized and based on the purchase price of the vehicle not their valuation. 1 Quote Link to comment Share on other sites More sharing options...
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