Attention GIADA Members
More Changes Coming Our Way

 

The new Transportation Special Purpose Local Option Sales Tax (TSPLOST) takes effect on January 1, 2013.On July 1, 2012, 46 Counties voted in an additional 1% Sales Tax capped at $50 for transportation improvements. Dealers selling cars to customers living in one of the 46 counties (listed at end of email) will be responsible to remit the additional 1% sales tax to the DOR with their monthly remittance reports. The DOR is finalizing a bulletin for T-SPLOST and they expect to have it out soon. They will send it out to registered businesses that requested updates from the DOR. (Opt in e-newsletter) So the quickest way to get it would be to sign up to get emails from the sales tax listserve here: https://etax.dor.ga.gov/listServ/index.aspx  GIADA signed up for both motor vehicle and sales tax email updates from the DOR.

 

In the amended version of HB386 that we are working through with all the changes, this TSPLOST is eliminated entirely. So, those affected by this may only be paying through February. I will keep our members informed of any changes and developments as they occur. GIADA recommends that you check with your Dealer Management Software Company for program updates to help you charge and collect this new Sales Tax.

 

FTC is requiring changes to the Spanish Version of the Buyer's Guide Effective February 11, 2013. News Release The FTC is currently seeking public comment on proposed changes to the regular used car buyer's guide so you can expect changes to the English version coming soon. GIADA will follow this and keep you informed. We have already begun making the design changes to the Spanish Buyer's Guides and will have those completed and available in January. 

 

Mandatory Electronic Lien and Title Program (ELT) Staggered Three Phase Role Out in 2013.The Georgia Electronic Lien and Title program ("ELT") provides a method for lenders that finance vehicles to be titled in Georgia to record and receive notice of security interests and liens electronically. To participate in ELT, lenders must enter into an agreement with an ELT service provider authorized by the Department of Revenue to electronically process security interest and lien information. Previously, participation in ELT was voluntary. However, HB 865 passed during the 2012 session of the Georgia General Assembly amended O.C.G.A. § 40-3-26 to require mandatory lender participation in ELT. This does include BHPH Dealers. This law is effective January 1, 2013. To facilitate a smooth transition, the law allows for a discretionary phase-in of the mandate by regulation. The Department of Revenue has provided the following phase-in schedule in proposed Regulation 560-10-12-.03: Effective January 1, 2013: Lenders who recorded 500 or more security interests or liens on Georgia certificates of title in calendar year 2012 must participate in ELT. Effective July 1, 2013: Lenders who recorded 200 or more security interests or liens on Georgia certificates of title in calendar year 2012 must participate in ELT. Effective January 1, 2014: Lenders who recorded 5 or more security interests or liens on Georgia certificates of title in the immediately prior calendar year, or who have recorded 5 or more security interests or liens on Georgia certificates of title within the same calendar year, must participate in ELT. To be fully prepared for this transition, BHPH Dealers lenders should contact TitleTec Sales call 866-689-0578, email Sales@titletec.com or call Georgia State Director Justin Davis at 404-432-4477.

 

HB386 Update - Calculating the New Title Fee.  The DOR developed a Web Interface for Dealers and Consumers which contains the Title Ad Valorem Tax Calculator. This is the tool Dealers will be using to determine the Fair Market Value after March 1, 2013. Once you establish FMV, just multiply 6.5% of that amount and you will know the amount to collect from your customer. To see what FMV is on your inventory, simply click on the link below and insert the VIN. http://onlinemvd.dor.ga.gov/Tap/vinnumber.aspx  Check the "No" box and hit "Enter." A page will display with a shaded area. In the shaded area you will see the "Fair Market Value." Compare this amount with your "Sale or Invoice Retail" price of the vehicles you are currently selling. In many cases, we have found that the FMV amount is less than the final sale price that you currently charge sales tax on. Multiply the FMV by 6.5% and this is the TAVT Fee that you will pay the Tag Office in the County where your customer lives upon application of Title.  

 

Title Fee (TAVT) "Frequently Asked Questions" (FAQs)  On the same page as the FMV Calculator page now, FAQ's has been added: http://goo.gl/aqrBL Remember, GIADA, its Lobbyists and our Attorneys have drafted and are submitting amendments to HB386 that address several components of this Bill including keeping 30 days to transfer a title and BHPH Title Fee deferment. This is still a work in progress. A number of these details will be modified after our amendment has cleared. I cannot make any promises because no one can predict what happens in this political arena. I am however, optimistic and hopeful that we will get our way. We have the strongest Lobbyist Team in Georgia, a very smart Attorney and a great deal of respect and credibility with the Leadership at the Capital.

 

Title Applications & Title Fees to be Submitted to Your Customers Tag Office.  After March 1, 2013, all Applications for Titles must be taken to the Tag Office in the County where your customer lives. Dealers are encouraged to contact TitleTec to inquire about the ETR Software Interface which can easily be added to your current TOPs system. Dealers signing up for the TitleTec ETR program will eliminate the need for trips to the Tag Offices. TitleTec will take care of that for you and TitleTec will facilitate Title Fee payments to the respective Tag Offices on your behalf too. TitleTec simplifies the entire process. To contact TitleTec Sales call 866-689-0578, email Sales@titletec.com or call Georgia State Director Justin Davis at 404-432-4477. Dealers using the Wayne Reaves Software may call Rachael at the Wayne Reaves Office for simple activation of ELT or ETR. 800-701-8082.

 

I will do my very best to keep you, our members informed of our progress.