Calculator change: remove Georgia from states that tax entire capitalized cost

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1

This may have already been suggested, but I couldn’t find it quickly.

HB 340 changed the way Georgia levies taxes on leases to align them with most other states (e.g., only taxed on leased payments, not entire capitalized cost).

So, if you’re in GA, you probably should be selecting the first option for taxes, not the option that lists VA and GA.

Probably just a wording change on the calculator page, but may be confusing to some users?

Thanks!

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2

Have a question in regards to tax treatment of a lease transfer being done in GA for a vehicle registered from out of state. I have been told by a member hackr that rule remains same on a lease transfer and tax needs to be paid for sales price. Any idea if this is right? Cause it doesnt…

3

I remember reading that cars had to be new and under a certain amount of miles (maybe 300), so even loaners/demos would get charged tax on the sales price. I assume a lease transfer would also be charged at the current value.

4

I was told that reregistering an out if state leased vehicle (in case you are relocating there) would charge tax on the Sales price or the value of the car in the county register whichever is higher.

5

With NEW auto leases in GA, there are two options - tax on total agreed upon value or total lease payments. Thus, the current calculator is relevant giving both options.

For leases of auto already titled such as a demo vehicle (USED), GA TAVT will considers on the purchased price or fair market value whichever is greater.

Below is from one of the GA Motor Vehicles Tax form from recent lease.

  • TAVT Base Value:
    For a new vehicle (not leased), the TAVT base value is the higher of these two amounts:
  1. Base sale price plus other taxable fees or
  2. The Georgia Department of Revenue vehicle value.
    For a new vehicle that is leased (with the Agreed Upon Value option), the TAVT base value is the higher of these two amounts:
  3. Vehicle value specified in the lease agreement (base sale price) plus other taxable fees or
  4. The Georgia Department of Revenue vehicle value.
    For a new vehicle that is leased (with the Total Lease Payments option), the TAVT base value is the total of lease payments (including any down
    payment made on the lease).
    For a used vehicle, the TAVT base value is the Georgia Department of Revenue vehicle value, or the higher of these two amounts if the Georgia
    Department of Revenue vehicle value is not found:
  5. Purchase price or
  6. Vehicle value from the NADA used car guide.

Have a question? Visit our website at http://dor.georgia.gov/motor-vehicles or scan the QR code above for more information.

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