Georgia Car Lease Tax Law Change

By November 21, 2017Sales Tax

Georgia Car Lease Tax Law Change
If you are planning on leasing a car in Georgia, read this article and save at least $800 to $3000 on your next lease.
Before:  If you were going to lease a car worth $30000.00, then, the sales tax would be $2100.00 (7% tax rate).  The $2100 would have either been built into your lease or you would have paid it up front.  How fair is this? You do not own the car, you are only using 50% of it in most cases, and you have to give it back in 3 years with additional penalties of mileage overage and damages if applicable.
After January 1, 2018:  Beginning January 1, 2018, car leasing in Georgia has become much more favorable to the lessee/buyer. Instead of paying sales tax on the full price of the vehicle, now you will only pay sales tax on the portion of the car that you lease. For instance, going back to our example of the $30000.00 car, if you had a sales tax liability of $2100, now your liability will be $1050.  That is a difference of at least $29.17 per month (will be more depending on your interest rate).
Is this a deal? Yes and no. Basically, you are simply no longer being taken advantage of by the government.
Georgia Car Lease Tax Law Change

Ansari Law Firm

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