In a nutshell, GA enacted a title tax last year. They later determined that since they dont require titles for many older vehicles that those vehicles were not being taxed due to that loophole. Now they are trying to close that loophole with this bill. They either want a bill of sale to set the value of the non titled vehicles or they will set a value based upon NADA or some as yet to be determined value guide. GA residents will then pay a tax based upon these values. Below you will find the SEMA alert issued on this bill, and a description of the legislation and potential arguments to use against it. Please read it.
Also note that if the state ultimately sets a value on your vehicle using some guide...you will be taxed at the same higher values as restored vehicles even if your car is a basket case. There is no way the state can fairly determine the value of these older vehicles since they know nothing of the condition etc. This means the tax will be levied in an unfair manner, and therefore is unequal application of the law....just one more reason to defeat this bill.
Please pass this along to your friends throughout Georgia, so this bill is defeated.
Legislation (H.B. 80) introduced in the Georgia General Assembly may effectively raise taxes on untitled vehicles that remain subject to the state’s annual ad valorem tax. As a result of a law enacted last year, vehicles that are sold in the state and re-titled in the new owner’s name will be subject to a one-time tax (“New Title Fee”) beginning March 1, 2013. The “New Title Fee” will replace annual ad valorem taxes for titled vehicles sold after March 1, 2013, including vehicles sold and purchased by enthusiasts. However, pre-1963 model year vehicles are not titled and pre-1986 model year vehicles are not required to be titled, so many vehicles would remain subject to the lesser annual assessments even when transferred to a new owner.
H.B. 80 is designed to close the loophole on un-titled vehicles and would alter the definition of "fair market value” to force vehicle owners subject to the annual tax to pay more by assessing their vehicle’s value at the retail selling price or the value contained within the assessment manual, whichever is greater. Since current law requires antique, hobby, and special interest vehicles to be valued in this manual at only $100 for ad valorem tax purposes, the retail selling price will almost always be the greater of the two values.
[h=3]We Urge You to Contact All Members of the Georgia House Ways and Means Committee (List Attached Below) Immediately to Request Their Opposition to H.B. 80[/h]
- For purposes of ad valorem taxes on motor vehicles, "antique or hobby or special interest motor vehicle" means a motor vehicle which is 25 years old or older or a motor vehicle which has been designed and manufactured to resemble an antique or historical vehicle.
- Under current law, pre-1986 vehicles are not required to be titled in Georgia and pre-1963 vehicles cannot be titled in Georgia, so these vehicles cannot be subjected to the “New Title Fee,” but would be subject to an increased annual ad valorem tax.
- H.B. 80 threatens to raise the annual ad valorem tax on pre-1986 vehicles without titles by assessing their value based on the retail selling price.
- H.B. 80 ignores the fact that many antique, classic and collectible vehicles are owned and maintained by low and fixed income Americans who are less able to afford a higher, annual tax.
- H.B. 80 ignores the fact that these older cars are infrequently driven (about one-third the miles each year as a new vehicle) hobby cars and should not be subject to increased tax rates.
[h=3]Georgia House Ways and Means Committee[/h]To e-mail all Committee members, copy and paste the email address block below:
firstname.lastname@example.org;email@example.com; firstname.lastname@example.org; Stacey.email@example.com;firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com;firstname.lastname@example.org; email@example.com; firstname.lastname@example.org;email@example.com; firstname.lastname@example.org; email@example.com;firstname.lastname@example.org; email@example.com; firstname.lastname@example.org;email@example.com; firstname.lastname@example.org;email@example.com; firstname.lastname@example.org; email@example.com;firstname.lastname@example.org; email@example.com; firstname.lastname@example.org;email@example.com; firstname.lastname@example.org; Wendell.email@example.com;firstname.lastname@example.org
Representative Mickey Channell (Chairman)
Representative Allen Peake (Vice Chairman)
Representative David Knight (Secretary)
Representative Stacey Abrams
Representative Paul Battles
Representative Sharon Beasley-Teague
Representative Ellis Black
Representative Bob Bryant
Representative John Carson
Representative Terry England
Representative Virgil Fludd
Representative Ben Harbin
Representative Brett Harrell
Representative Penny Houston
Representative Chuck Martin
Representative Howard Mosby
Representative Larry O`Neal
Representative B.J. Pak
Representative Don Parsons
Representative Alan Powell
Representative Matt Ramsey
Representative Tom Rice
Representative Lynne Riley
Representative Chuck Sims
Representative Mickey Stephens
Representative Ron Stephens
Representative Willie Talton
Representative Wendell Willard
Representative Bruce Williamson