Legislation that increases taxes on consumers who purchase used cars passed the state Senate Friday.
House Bill 340, sponsored by Rep. Shaw Blackmon, R-Bonaire, is designed to rectify a 2012 law that allows used-car dealers to benefit from the tax structure.
"The concept is you're going to actually pay tax on what you pay for like every other thing in the state of Georgia," said state Sen. Chuck Hufstetler, R-Rome, who carried the bill in the Senate. "You pay so much for vehicles that you do not get to keep that it was greatly discouraging leasing in the state of Georgia."
The bill, Hufstetler said, was also written to level the playing field between counties.
State Sen. Vincent Fort, D-Atlanta, who spoke against the bill said it targets working-class Georgians who are more likely to purchase used cars rather than lease.
"When is revenue neutral not revenue neutral? When you get hit," he said. "The combination of this passing preys on used car buyers and tax decrease on people who lease makes it revenue neutral — except if you're the one paying the tax increase."
But state Sen. Emanuel Jones, D-Ellenwood, said provides a business incentive to lease cars.
"By having an opportunity to change the law, we now put leasing on equal footing with regular retail any other way that we sell automobiles in the state," he said.
Jones, who works in the automobile industry, said because he did not feel he would personally benefit nor violate any rules, he felt comfortable voting in favor of the bill.
"This bill is about collective taxes. It is not about any money that accrues in any way to my dealership," he said.
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