Georgia to Phase Out 'Birthday Tax' on Motor Vehicles
Winder's city attorney apprised council members of the change during Monday's work session.
With Georgia Gov. Nathan Deal's signature, the state will begin to phase out the annual ad valorem motor vehicle tax paid by car owners.
The Atlanta Journal-Constitution reports the state legislature has nixed what's known as the "birthday tax" as part of a widely supported tax bill awaiting the governor's signature.
Under the bill, individuals who purchase cars — new or used — after March 1, 2013, will no longer have to pay an annual tax. Instead, vehicle buyers will pay a one-time fee up front, beginning at 6.5 percent in 2013 and increasing to 7 percent by 2015. The fee will take the place of both the sales tax paid at the time of purchase and the annual ad valorem tax.
The AJC reports the new program will be phased in over about 10 years as car owners will continue to pay the previous ad valorem tax as long as they keep their current vehicle.
Winder's City Attorney, John Stell, apprised the council of the change during the Monday, April 2, work session.
"We don’t know how much money Winder will get out of this, but we’ll probably see an increase out of going to this system," Stell said.
The AJC reports that while the motor vehicle tax is not a large part of local budgets, compared to property and sales taxes, it is a consistent part. The General Assembly appears to have protected those local budgets.
Clint Mueller, lobbyist for the Association of County Commissioners of Georgia, said the deal struck in the tax bill will deliver “roughly the same amount of revenue” to local governments.
Will you celebrate the end to the "birthday tax" on vehicles? Tell us in comments.
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