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TomCox

Legislative Alert for Georgia... Tax issue

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Guys and Gals,

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]DON’T DELAY! Please contact members of the Georgia House Ways and Means Committee immediately by e-mail to request their opposition to H.B. 80.[/h]Please e-mail a copy of your letter to Steve McDonald at stevem@sema.org. Also, please forward this Alert to your fellow car enthusiasts. Urge them tojoin the SAN and help defend the hobby! Thank you for your assistance.

[h=3]Georgia House Ways and Means Committee[/h]To e-mail all Committee members, copy and paste the email address block below:

mickey.channell@house.ga.gov;allen.peake@house.ga.gov; david.knight@house.ga.gov; Stacey.abrams@house.ga.gov;paul.battles@house.ga.gov; sharon.beasley-teague@house.ga.gov; ellis.black@house.ga.gov; bob.bryant@house.ga.gov;john.carson@house.ga.gov; terry.england@house.ga.gov; virgil.fludd@house.ga.gov;ben.harbin@house.ga.gov; brett.harrell@house.ga.gov; penny.houston@house.ga.gov;chuck.martin@house.ga.gov; howard.mosby@house.ga.gov; larry.oneal@house.ga.gov;votebjpak@gmail.com; don.parsons@house.ga.gov;alan.powell@house.ga.gov; matt.ramsey@house.ga.gov; tom.rice@house.ga.gov;lynne.riley@house.ga.gov; chuck.sims@house.ga.gov; mickey.stephens@house.ga.gov;ron.stephens@house.ga.gov; willie.talton@house.ga.gov; Wendell.willard@house.ga.gov;bruce.williamson@house.ga.gov

Representative Mickey Channell (Chairman)

Phone: 404/656-5103

Email: mickey.channell@house.ga.gov

Representative Allen Peake (Vice Chairman)

Phone: 404/656-5025

Email: allen.peake@house.ga.gov

Representative David Knight (Secretary)

Phone: 404/656-7855

Email: david.knight@house.ga.gov

Representative Stacey Abrams

Phone: 404/656-5058

Email: Stacey.abrams@house.ga.gov

Representative Paul Battles

Phone: 404/656-0152

Email: paul.battles@house.ga.gov

Representative Sharon Beasley-Teague

Phone: 404/656-0220

Email: sharon.beasley-teague@house.ga.gov

Representative Ellis Black

Phone: 404/656-0287

Email: ellis.black@house.ga.gov

Representative Bob Bryant

Phone: 404/656-0298

Email: bob.bryant@house.ga.gov

Representative John Carson

Phone: 404/656-0287

Email: john.carson@house.ga.gov

Representative Terry England

Phone: 404/463-2247

Email: terry.england@house.ga.gov

Representative Virgil Fludd

Phone: 404/656-0314

Email: virgil.fludd@house.ga.gov

Representative Ben Harbin

Phone: 404/656-3949

Email: ben.harbin@house.ga.gov

Representative Brett Harrell

Phone: 404/656-0254

Email: brett.harrell@house.ga.gov

Representative Penny Houston

Phone: 404/463-2247

Email: penny.houston@house.ga.gov

Representative Chuck Martin

Phone: 404/656-5064

Email: chuck.martin@house.ga.gov

Representative Howard Mosby

Phone: 404/656-0287

Email: howard.mosby@house.ga.gov

Representative Larry O`Neal

Phone: 404/656-5052

Email: larry.oneal@house.ga.gov

Representative B.J. Pak

Phone: 404/656-0254

Email: votebjpak@gmail.com

Representative Don Parsons

Phone: 404/656-9198

Email: don.parsons@house.ga.gov

Representative Alan Powell

Phone: 404/656-0202

Email: alan.powell@house.ga.gov

Representative Matt Ramsey

Phone: 404/656-7146

Email: matt.ramsey@house.ga.gov

Representative Tom Rice

Phone: 404/656-5912

Email: tom.rice@house.ga.gov

Representative Lynne Riley

Phone: 404/656-0188

Email: lynne.riley@house.ga.gov

Representative Chuck Sims

Phone: 404/656-7855

Email: chuck.sims@house.ga.gov

Representative Mickey Stephens

Phone: 404/656-0116

Email: mickey.stephens@house.ga.gov

Representative Ron Stephens

Phone: 404/656-5115

Email: ron.stephens@house.ga.gov

Representative Willie Talton

Phone: 404/656-5116

Email: willie.talton@house.ga.gov

Representative Wendell Willard

Phone: 404/656-5125

Email: Wendell.willard@house.ga.gov

Representative Bruce Williamson

Phone: 404/656-7859

Email: bruce.williamson@house.ga.gov

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Thanks for posting, Tom. And thanks for spending so much time (and money) as a watchdog for the entire collector car community.

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Posted (edited)

Thanks indeed Tom. I have emailed all those listed as well passed the word around to friends via email.

It appears Harry Geisinger mailto:harry.geisinger@house.ga.gov and Tom Rice mailto:tqgrice@aol.com are sponsoring the bill so would be the ones to really seek explanations from and let know that all antique auto enthusiasts don't have deep pockets like the ones they see on TV at Barret Jackson.

House is in session from January 28 - March 5th, so we need to get the word out now, if it isn't already too late.

Here's the long version > http://www.legis.ga.gov/legislation/en-US/Display/20132014/HB/80

Edited by MrEarl (see edit history)

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City I live in tried using NADA values to set tax values on old cars way back in 1990, with predictable results.

At the time I owned a 73 Delta 88 convertible that had been a $100 car for taxes for years. The year NADA set the tax values, it suddenly became a $2000 car for tax purposes- a 2000% increase in value on the same car in the same condition. Naturally I challenged it, but the city tax folks could not explain to me why that car had suddenly become so much more valuable as a taxable asset. They kept mumbling about NADA had set the values by the serial numbers. So, I asked, why is that VIN worth so much more than all other 1973 Oldsmobiles, which were still all $100 cars for taxes? I knew it was because of the convertible designation, but it was the principle of the thing. I was really glad when that car hit 25 yrs old and I could put antique tags on it, and get it out of the personal property tax system completely, though I'm sure our friendly local Vajenya legislator will try to monkey with that again soon.

Friend had a 67 Camaro that was really little more than a parts car, and they socked him with a tax bill based on a fully restored #1 car. He took pictures of the car to the tax office and still ended up having to get a lawyer involved to make the revenue hounds back off.

Reagan was right about guvmink mindset: "If it moves, tax it. If it keeps moving, regulate it. If it stops moving, subsidize it."

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