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Ad Valorem Tax On Cars

A Georgia lawmaker says he’ll introduce a bill in less than two weeks to cut or get rid of the unpopular ad valorem tax on cars. Speaker Pro Tem Mark Burkhalter vows the state -- not local counties -- will absorb the tax break.

Burkhalter’s home county -- Gwinnett -- would see the greatest benefit.

Local counties take 40 percent of your car’s value and tax it like they tax your house. The bill would reduce your value at least $15,000 -- maybe as much as $25,000. Depending on where you live, you can easily save a couple hundred bucks. But in Georgia’s car capital -- Gwinnett County -- there’s a concern.

Gwinnett County has the most tags -- adorning 640,000 cars. So the county collects the most automobile ad valorem. It adds up.

Tax Commissioner Katherine Sherrington says she’s anxious to see the bill to be introduced later this month. Speaker Pro Tem Mark Burkhalter envisions drivers paying the tax as usual, then the state cutting rebate checks.

The state would fund the tax break, not the counties.

Donald Harrison owns a fleet of vehicles for his business.

“I think it should be eliminated, other states don’t have it. It’s just throwing money away in my opinion,” said Harrison.

But Sherrington fears the logistical challenge of issuing rebates -- 8 million of them.

“Operationally it has to be difficult because of the money going in, the money going out and it’s going to individuals who have moved, divorced and don’t get their check,” said Sherrington.

Those are details Ursula Connor would certainly like to see ironed out. She’s from Tennessee where there is no ad valorem. When asked if she was surprised to find out how much a tag was she said, “Shocked!” Because she went from paying $38 to over $200 -- that’s a big jump.

Taxing officials that spoke to Channel 2’s Jim Strickland each said the proposal must be revenue neutral -- meaning the counties can’t be burdened with funding any of the tax break. One local official cautioned states without ad valorem often have higher property taxes as a trade off. Burkhalter says he needs to see a few more figures before deciding exactly how much of a break he’ll propose.

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