House panel moves to solve car lease tax issue

Motorists who lease a car would no longer face a double-tax whammy in Georgia under legislation the House Ways and Means Committee approved Tuesday.

House Bill 80, by Rep. Tom Rice, R-Norcross, seeks to avert a change in tax law created last year when lawmakers adopted sweeping tax changes. The 2012 legislation eliminates the annual property tax on vehicles. It also requires Georgians who lease cars beginning March 1 to pay an upfront title tax of 6.5 percent — same as those who buy a car — but also pay a monthly use tax based on their local jurisdiction’s tax rate.

HB 80 would do away with the monthly use tax. The effect would be to treat leases the same as purchases.