Before the fix, the new Georgia state sales tax levied a 6.5 percent tax on leased vehicles at the time of the deal and another 6.5 percent tax on each monthly payment. On vehicles purchased with a loan or cash, the 6.5 percent tax is levied only at the time of the deal.
As amended, the tax on leases still applies up front, but the tax on monthly payments is dropped, according to a bulletin from the Georgia Department of Revenue.
The American Financial Services Association, a Washington based trade group that represents financial institutions, including auto lenders, supported legislation to remove the additional tax on leases, which the group has said appeared to be inadvertent.
Other groups that came out in favor of amending the tax were the National Vehicle Leasing Association, Georgia Automobile Dealers Association, Alliance of Automobile Manufacturers, JM Family Enterprises and the Georgia chapter of the National Federation of Independent Businessmen.
Georgia's new state sales tax on autos, passed in early 2012, replaced sales taxes that varied county by county. It also imposes Georgia's first sales tax on private auto sales from one individual to another.