School systems expect financial hit from car tax changes | www.myajc.com

27
Apr

School systems expect financial hit from car tax changes | www.myajc.com

School systems expect financial hit from car tax changes | www.myajc.com.

Officials in some metro school systems don’t see the end of the “birthday tax” on vehicles as something to celebrate.

As they prepare budgets for the new fiscal year that starts July 1, they are forecasting that the law change could cost them hundred of thousands of dollars, if not millions, next year, and more down the road.

For example, officials in Gwinnett, the state’s largest school system, are projecting it will mean a net loss for them next year of $2.2 million to $4.2 million.

The law, which the legislature passed in 2012 and took effect March 1, requires new vehicle owners to pay a one-time, upfront title fee, currently 6.5 percent of the vehicle’s value, while owners of older cars continue to pay the annual tax. It also imposes the title fee on person-to-person vehicle sales and on out-of state vehicles being registered in Georgia.

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