I recently needed to get a loaner car and have incurred several expenses in additional to paying a sales tax for the car. I'm only using this car temporarily. Is this car subject to sales tax in Georgia?

ANSWER

The BIDaWIZ Team's Answer:

Georgia state tax code provides guidance on this matter. The key issue is whether or not you used the loaner car for more than 31 days. If this was a loaner car for longer than 31 consecutive days, the gross monthly lease charge is exempt from sales and use tax. However, if the loaner car is provided for the period of 31 days or less, the charges are subject to sales tax in Georgia. The reason that this is the case is because a loaner car for less than 31 days is technically considered a rental.