So I bought my Z close to a month ago and I THOUGHT everything was done, but apparently I was wrong.

I got a call from the rep at the bank and she said that there was a mistake regarding the loan and now sales tax is due. She gave me the amount and I did the math and it's more than 7% of the price I bought the car for. I asked her why so high and she said it's tax on what the previous owner OWED on the car.

Needless to say, the seller and I are completely confused as to how this all of the sudden this has come up. The seller said that it was her understanding that there is no sales tax on cars purchased from private parties in Georgia.

Here's what I think happened:

I think that sales tax is only exempt if the title is in the seller's name. When my bank processed the loan, the paperwork was done with the title in the name of the previous owner. Now they figured out that the loan is actually in their bank's name (because they still owed on the car) and thus, there is sales tax due. Not sure if this error is my bank's or the seller's bank's fault, but it sucks finding out about it almost a month later >;|

I just want to know if anyone has any clear information on the sales tax law regarding private parties. I've googled for awhile now, but have found conflicting information.

Also, if sales tax is due, how much do you think I should be held liable for? I say I owe the tax for the price I paid on the car and the seller owes for the remainder.

Worst part is we're nearing the 30-day limit and I'm about to incur a penalty. I'd like to make the bank pay this if possible, because this is essentially their fault for taking for-effing-ever.