CPO Question

[landtuna]

Don't forget, that if you itemize deductions, the upfront registration amount is tax detectable for purposes of calculating Federal and State taxable income.

Registration charge is not deductible unless it contains a tax in which case only the tax portion is deductible.

 

[Mark_888]

Registration charge is not deductible unless it contains a tax in which case only the tax portion is deductible.

That is what I meant. The actual registration annual fee is negligible (about $20), and the annual tax portion is several hundred dollars (depending on value of car). It looks like the under the new Georgia law, the tax is paid up front, and registration fee each year will only be about $20.

 

[landtuna]

That is what I meant. The actual registration annual fee is negligible (about $20), and the annual tax portion is several hundred dollars (depending on value of car). It looks like the under the new Georgia law, the tax is paid up front, and registration fee each year will only be about $20.

Then consider yourself lucky. In AZ we pay a sales tax when buying a new or used car (from a dealer, not a private party) and we pay an "in lieu" (property) tax every year when registering the car. The registration fee itself is very small but the tax is a percentage of the car's original MSRP reduced by 15% annually.

Overall, AZ is around mid-point in taxes but for vehicles, especially new ones, you pay through the nose.

 

[Mark_888]

Then consider yourself lucky. In AZ we pay a sales tax when buying a new or used car (from a dealer, not a private party) and we pay an "in lieu" (property) tax every year when registering the car. The registration fee itself is very small but the tax is a percentage of the car's original MSRP reduced by 15% annually.

Overall, AZ is around mid-point in taxes but for vehicles, especially new ones, you pay through the nose.

I didn't mean to suggest that there is no sales tax in GA (in addition to property tax paid with annual registration). I believe that the new law in GA is that sales tax stays, but the property tax is now collected all up front each time title is transferred (instead of spread out with an annual assessment). The annual registration fee of $20 is collected with license plate renewal.

 

[homeofstone]

I didn't mean to suggest that there is no sales tax in GA (in addition to property tax paid with annual registration). I believe that the new law in GA is that sales tax stays, but the property tax is now collected all up front each time title is transferred (instead of spread out with an annual assessment). The annual registration fee of $20 is collected with license plate renewal.

As of 2013 there is no sales tax when purchasing a vehicle in the State of Georgia. The title tax is collected up front at time of registration for dealer and private sales.