Previously, the amount of sales tax due was based on the state and local tax rate of the county where the purchaser took possession of the vehicle.

"This change in the law provides definitive guidance to dealers regarding the amount of sales tax they should collect," said Georgia Revenue Commissioner Bart L. Graham.�"It will also reduce the instances when our Rome Regional Office has to go through the unpleasant task of sending notices to taxpayers informing them that additional sales tax is due on their motor vehicle purchase."

Such notices normally occurred when the tax rate for the dealership was less than the tax rate in the purchaser's county of residence.�

The change will generate income for counties that do not have motor vehicle dealerships located in their county.�Prior to the law change, motor vehicle dealerships were required to collect local county sales tax based on the tax rate where the dealership was located.�The exception was in those instances when a vehicle was delivered to the purchaser or he/she otherwise took possession of the vehicle in their county of residence, which had no dealerships.�Under those circumstances, the local sales tax was distributed to the non-dealership county.

This legislative change was contained in House Bill 22, which the Georgia legislature passed April 4 and Governor Perdue signed May 6.�The bill was sponsored by Representatives Calvin Hill, Chuck Scheid, and Charlice Byrd.

Georgia's county sales and use tax rates range from one to three percent.�Atlanta's one-percent city tax is exempt in transactions involving the sale, lease or rental of motor vehicles.