Equal Time: HB 480 removes state’s perpetual lien on vehicles

In a free society, government shouldn’t have a stake in each piece of property many of us work hard to own. Motor vehicles should belong to each of us free and clear.

But that is the story here in Georgia, as state and local officials have felt entitled to annually collect taxes on cars, trucks and SUVs, by something that is known as “the birthday tax” — a levy due on the birthday of the owner of each vehicle.

If the Legislature is successful in eliminating this onerous tax, we will set historic precedent in this state and nationwide when it comes to personal property. We will prove that citizens can own some property without government feeling at liberty to put a perpetual lien on it.

House Bill 480, which eliminates the “birthday tax,” would instead substitute the annual ad valorem tax and sales tax at point of sale for a one-time fee on all vehicles — whether the purchase of a new vehicle or a fee when owners transfer a title in a personal sale. That’s it. End of story. No more levies. No more taxes. No more hidden fees. The owner of the vehicle would own the car, truck or SUV, free and clear of any government levies.

Since the average Georgian owns a vehicle seven years, a motorist would no longer have to pay taxes related to that car. Ninety-three percent of Georgians own vehicles, according to the U.S. Census. I can’t imagine in this economic downturn that every one of those motorists wouldn’t rejoice at the news of no more birthday tax.

Although the change in the plan will require a 7 percent charge with a maximum $1,500 fee when you purchase a new or used vehicle, car buyers will be able to finance the fee in auto loans. The law would take effect Jan. 1, 2010.

Unfortunately, current vehicle owners will not be impacted by this legislation, and they will continue to pay their annual ad valorem taxes until they purchase another car or truck. Those who buy a new or used vehicle in 2009 may apply for a waiver for an exemption from the “birthday tax.”

In Georgia, some individuals and businesses have gone to lengths such as registering vehicles with family and friends out of state to avoid paying the annual tax.

That shows it is an oppressive and unfair tax system on this form of personal property. This change will make it a one-time, fair tax for everyone.

Our disabled veterans and Purple Heart recipients are now exempt from ad valorem taxes. As a veteran, I am proud to honor them by exempting them from the title fee.

Any surplus funds generated by the one-time fee on sales of new and used vehicles will be dedicated to much-needed trauma care in our state. It could generate up to $150 million for trauma centers in rural areas that do not have the facilities we are fortunate enough to have in metro Atlanta, such as Grady Memorial Hospital.

Paying an ad valorem tax on your birthday just to maintain “good standing” with the government is not only unfair but probably not what the Founding Fathers intended. It is an unconstitutional taking of property that they should own fair and square.

HB 480 will let every Georgian say “Happy Birthday” without worrying about one more bill to pay.

Harry Geisinger, a GOP House member from Sandy Springs, wrote HB 480.