Fritz Engelmann, owner of Classic Bus Sales in Clarkesville and a member of the NFIB Georgia Leadership Council, spoke before a House study committee about issues with state agency procedures and unlicensed dealers in used vehicle sales.
Engelmann, who has been a franchise and used car dealer since 2012, told lawmakers that unclear guidance from the Secretary of State and Department of Revenue has made licensing rules difficult to understand. He said his main concern is a problem with how state surplus vehicles are sold.
According to Engelmann, many agencies list vehicles on govdeals.com and sign over titles without transferring them. This practice allows buyers, including unlicensed dealers, to resell cars several times without paying the state’s Title Ad Valorem Tax (TAVT).
“I bought 26 vehicles from DOT at an auction,” he told lawmakers. “They signed every one over but never transferred them into my name…. Just think about how much the state of Georgia is losing.”
He estimated that the state could be missing out on hundreds of thousands of dollars in tax revenue each year due to this issue. To address it, Engelmann suggested that agencies should be required to provide a bill of sale on official letterhead for each transaction to ensure proper transfer and tax collection.
Engelmann also asked for stricter enforcement against people selling cars without a dealer’s license. He urged legislators to give regulators more authority to stop unlicensed dealers and prevent tax evasion. “I think you guys are on the right track in trying to enforce that side of the business,” he said.
NFIB has not taken an official position on these matters. However, State Director Hunter Loggins noted that Engelmann’s testimony shows how small business owners can influence legislative decisions.
“NFIB is the voice of small business, but members like Fritz Engelmann really help amplify that voice,” Loggins said.
