What the new car tax means for you - WTOC-TV: Savannah, Beaufort, SC, News, Weather & Sports

What the new car tax means for you

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SAVANNAH, GA (WTOC) -

The system for taxing cars in the state of Georgia changed drastically on March 1, but there's still some wiggle room for those who bought cars in 2012.

WTOC spoke with Mark Grainger, Vice President of Grainger Nissan and Grainger Honda, and he said he supports the changes.

"It's a good thing. It's a good thing for the dealer, it's a good thing for the consumer. I think everyone loves it. People are finding their commitment up front is less than what it was before."

Grainger explained how the system works.

"When you buy a car now you pay 6.5% TAVT, title ad valor em tax, and it's 6.5% whereas sales tax in the past was 7%.

This is a one-time fee you pay instead of the annual birthday tax. Depending on when you bought your car, you have a couple of options. If you bought it before January 1, 2012, you'll keep paying the birthday tax each year. If you bought your car between January 1, 2012 and February 28, 2013, you can pick between continuing to pay the birthday tax or paying the new one-time title tax.

Grainger encouraged buyers to pick the latter, saying consumers could save nearly $2,000 over the course of four or five years.

To learn more about the tax click here.

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