@D-train is gonna go through with something similar to this (moving from CA to GA), so this info will be helpful for him too. Or he can report back what he goes through if no one gets an answer first.
sadly, you will have to pay tax on the full sales price if it is a loaner. I myself leased a loaner last year (March, 2018) and had to pay tax on the full prices. Deal was that good for me to go for it, but yea. It really doesn’t make sense in Georgia. I confirmed with DMV and everything. But, I think some BMW loaners are never titled(rare), and in this case, theoretically, you will only have to pay tax just on lease payment.
Interesting. We’ll see what happens on Saturday then. Dealer confirmed the way they titled it means it should be new. I’ll walk or expect an offsetting discount to MSRP if they don’t, but maybe because they know I’m driving from Atlanta, I’d be less likely to?
When would one find out what the deal is…is it at the time of picking up the car?
Or is it after you bring it home youd get a surprise later from the DMV?
My impression is that it is different for new cars, used cars, and new residents. I have the same question about leasing a loaner. Here is the online calculator https://onlinemvd.dor.ga.gov/Tap/Option1.aspx#message. I haven’t ready anything about taxing the full sales price. I have read taxing the fair market value. Way different… Seems like a lease is a lease regardless of new or used. We don’t OWN the vehicles, why should we pay tax on the full price. Please, keep us updated!
It might also be different for me when I move to GA and transfer my registration than someone purchasing in GA.
Did you get the loaner directly from the dealer?
Or was it a lease transfer from someone else?
(hoping to find a technicality of why you had to pay tax on fair value of entire car)
I got my loaner directly from a dealer in California. I am moving to Atlanta next month and couldn’t get an answer on the taxes I will pay when I register the car in GA. If you could ask the tax collector for me that would be great!! I think this is done at the tax office / tag office not the DMV, but I am probably wrong.
Yea, I would think it is done at the Tag / Tax Office when you register and change plates. However, no idea on what the basis will be for the tax. How much longer on the lease? Any appetite to risk not changing registration to avoid the issue?
@Dealhackr in talked with the dealership, they handle the registration/taxes and everything, so I think they pay the tax bill on my behalf. If they didn’t collect enough from me on the front end, not sure what their recourse is on the back end.
hot off the press from another dealer
“As of July 1st you only pay the taxes on the usage, not FMV, on loaners. It has to be under 7K miles and you still adjust the residual on the current mileage”
I’m gonna contact DMV & Tax/Tag office to see what the deal is
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Picked up a 3 series from ATL area. They did the registration. They messed up the calculation, but still honored it to me after couple hrs of back and forth. I also crossed shop with a c-class and had the same problem. It was right after the new law so even dealers were confused. I moved while waiting for the physical tag to be shipped so it got little complicated and I had to make drive down to tag office couple of times. Got to know the ladies there pretty well and they explained to me how ridiculous it is lol If you are moving to GA from out of state, my understanding is that you are require to pay tax on fair market price of the car. It is ridiculous, but yea 
better to just swap the lease or keep your cali tag somehow? I don’t know about the new rule though. Maybe it is changed since the beginning of this month? Sorry, two babies are crying their lungs out right next to me so I’m not all here, but hopefully I’m being helpful here
I just moved to ATL, planning on getting a loaner tomorrow. Will update with the results
thanks, data points will be very helpful
Yep, talked to multiple dealers in GA, tax laws changed this month. Now based off of monthly payments.
Sorry for the delay. So yes, got my car last weekend and taxes are in the lease amount only. Also called the Tag office beforehand and they referred the same. Hope this helps
If you buy from a GA dealer and car is still leasable (for BMW FS that is less than 5,000 miles) then you only pay 7% tax on total financed amount. Has been that way for a few years now.
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This really helps. GA tax on FMV for loaners made us loose multiple unicorn BMW deals.
Glad that they changed it finally.
I know this is an old thread, but the information is still relevant. I’m looking at leasing a Mercedes loaner that’s been titled as a rental in another state. Georgia wants to charge tax on the sales price or MSRP, and not the lease payments, which basically negates the value of leasing a loaner. Does anyone know if this only applies to out of state loaners? It seems like people are able to get around those extra taxes on loaners from Georgia dealers.
That was the old law to charge on selling price
The new tax law (?2019 or 2018) is only on sum of lease payments
I had this issue when leasing a loaner from out of state but ultimately they learned I was correct
Be careful though…don’t let the dealer charge you on full value and say we’ll refund you if the tax dept later says its not on full value…bc I spoke w/ tax dept and they said the dealer can charge tax either way…on sum of payments or on selling price …so technically if they did charge on full value that is an acceptable method of calculation so there probably wouldn’t be any refund later
It is a hassle to get this straightened out, but I did lease 2 loaners from out of state and register in GA and only paid tax on sum of lease payments
Yep, that’s exactly what they said; MBFS will refund the difference if it’s incorrect. I’m not signing a contract with the wrong tax rate, only to possibly get reimbursed down the road. This is kind of ridiculous for a company whose North American headquarters are in Georgia, especially since they’re (MBFS) the ones who changed the tax rate during their review. Maybe this is a sign to get a different model, brand new.
Out of curiosity, how did you prove this? I’ve been reading through rules and regulations on the SoS website and can’t find anything specifying taxation for leased loaners from out of state. They’re clear on the policies for GA dealers but nothing for lessees.