Atlanta
Atlanta
In Narrow Vote, Senate Passes Lemon Law Fee Increase
(2012-02-03)
(WABE) - The Georgia Senate has narrowly passed a bill that adds two dollars to a fee used to enforce the state's Lemon Law. Opponents are calling the bill a new tax on car buyers.

If a new car keeps breaking down, the Lemon Law gives the car buyer recourse through the Office of Consumer Affairs to get their money back. For this protection, all new car buyers pay a $3 fee.

Senate Bill 305, which passed by only one vote, would raise that to $5.

Supporters of the bill cite a recent change in the Lemon Law, which extended the period a consumer could file a claim, from 12 to 24 months. Supporters say the fee increase is needed to cover the additional claims.

However, Senator Steve Thompson of Marietta says the current $3 fee actually brought in more money than the consumer agency needed. He says the excess fees were used to fill holes elsewhere in the state budget.

"It did not make sense to me that they took 150,000 more in than they appropriated and instead of using those funds, they want to increase the fee to the public," said Thompson.

The bill still needs approval from the House and the Governor.
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