In 2020, there are a number of new laws added to the books in the state of Georgia, and of those, one affects vehicle purchases and one affects boat and watercraft purchases. Let’s take a closer look at these new laws.
The "Title Ad Valorem Tax: Used Cars and Tax Rate" lowers the title ad valorem tax (TAVT) rate from 7% to 6.6 % through June 2023 when the rate will return to 7%. This means it will cost you less to buy a new car. So if you’re looking at buying a new car, you may want to keep this in mind. Since the rate will return to 7% in June 2023, buying new and now could have a slight advantage.
This bill requires the titling of boats and watercraft (similar to vehicles), and provides rules for the titling system that’s designed to stop theft, simplify ownership, and to create equity and fairness when selling vessels by dealers, brokers, agents, private parties and manufacturers. So, if you’re looking at purchasing a boat or other watercraft, now there’s a titling system in place to keep everyone honest.
To read the bills in their entirety, click the links.
Also: Changes in the Required Minimum Distribution
Under the SECURE Act (Setting Every Community Up for Retirement Enhancement) that was signed into law on December 20, 2019, the Required Minimum Distribution (RMD) age has changed from 70 ½ to 72. That means the account holder doesn’t need to take the distribution until they reach the age of 72. Be aware that account holders who turned 70 ½ in 2019 must follow the old rules and are required to take an RMD at 70 ½. For more on the SECURE ACT and how it may impact retirement, read Forbes.com article 6 Ways the SECURE ACT May Impact Your Retirement .
As always, consult with your financial planner or tax professional when it comes to your unique financial sitution.