The Georgia legislature has left county tax commissioners in a bit of a quandary.
New tax laws go into effect for vehicle sales on March 1st, but a second bill now being debated could change a lot of things.
If you've confused----you can appreciate what Georgia car dealers and lenders are facing.
Tax commissioners from 5 north Georgia counties met with automobile dealers and lending institutions Tuesday to explain House Bill 386.
It was passed last year but it goes into effect Friday.
DANNY SANE, WHITFIELD CO. TAX COMMISSIONER "There's a lot of little small details that's really ...We're just not sure yet..the worst thing that can happen is the public get caught in something they are unaware of."
But the problems begins with House Bill 80 now being debated. It's hoped the lawmakers will clean-up some of the confusing language in the first bill. In short, the rule will be, no more sales tax charged on motor vehicle purchases but rather a 6 and 1/2 percent Title Ad Valorem fee when the vehicle is registered. But, you won't pay the so-called birthday tax on the car every year.
DANNY SANE "We know what house bill 386 is, we know how to implement that. The problem is we had hoped for some good fixes..and to have a little more input with it."
Those fixes are especially needed by the "Buy Here, Pay Here" lots, which sell a hundred thousand vehicles a year to buyers with poor credit.
The Georgia Independent Dealers Association represents 2200 of them.
PAUL JOHN, EXEC. DIR., GIDA "If some of our concerns aren't met, and our needs..there will be some dealers that will have to shut down ...would not be able to stay in business..could be 50, could be 500.. don't know."
Those dealers would have to pay the ad valorem tax out of the down payments they receive..and since about 40% of those sales go bad within the first 6 months, the dealers will be stuck for the money.
DANNY SANE "Listen, we've got to support...you cannot legislate your businesses out of business...cause when you do that, its not profitable to be in Georgia anymore."
The tax commissioners say they have no idea of when the legislature will finish up with House Bill 80.
But they hope it will resolve many problems with the new tax plan.