If they would drop the Gas tax, I wouldn't mind paying for my usage of the system, providing of course the fees were reasonable.
But have you ever seen the government give up a tax?
Hey, Tom. Our illustrious
legislature here in Georgia just eliminated not one but two onerous TAXES. We had to pay sales TAX on vehicle purchases (but only on the difference between new cost and trade-in allowance so on a $20,000 car with a $10,000 trade we paid on the $10,000 difference) and we also had to pay an ad valorem TAX each year on the declining value of the vehicle. So, our good guys in this predominantly red state said that TAXES ARE BAD and they did good by eliminating these two.
So, being fiscal good guys (they say), they said that this did have to be revenue neutral. So, they implemented a FEE on title registrations/transfers so that you now pay, guess what, the same rate as the eliminated sales TAX but you get to pay it on the entire price exclusive of the trade-in. (In all fairness I'm not sure about this part about the trade-in because the explanation I received was from our county tax assessor and he was unclear about all of the details since the Georgia legislature hasn't given them anything official). This title registration FEE is paid when you register the title. This FEE also applies to all title applications including the transfer of ownership between family members. So, you say the price you paid your dad for the car was $100? Not too worry, they are going to check the value of the vehicle to make sure that if you got a really sweet deal you will still pay the state based on "fair market value". This new FEE will apply to all transactions, even between private individuals which previously excluded the sales tax.
So, beginning March 1, 2013 this kicks in. The boys on the hill did figure out that this might have a negative impact on new car sales for a few months before this kicks in so they created some sort of pro-rated scheme, the details of which are also unclear.
And then there is the issue of the ad valorem tax that will be eliminated from vehicles titled after March 1. The tax man told me that the county will have to replace that revenue somehow, possibly with a TAX increase.
As I said before, the information above is from my local tax assessor who admittedly is in the dark about the finer details of this wonderful legislation. I will be truly surprised if we don't learn more ugly side effects as time goes along.
The "T" word is a no-no but all levels of government seem to have no problem with FEES. GA, for the moment, dodged a user FEE which was pushed because the idea of an increase to the gas TAX was unacceptable.
I like your tag-line, Tom. It is very true.