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When a licensed auto dealer purchases a car, whether from a private party, at an auction or from the manufacturer, the purchase is not considered a taxable transaction for sales tax purposes. This is the same when a grocery store purchases tomatoes from a local farmer. Neither pay a sales tax, but when the grocer sells the tomatoes to his customers, the customers pay a sales tax. To answer the question, neither pay a sales tax on the transaction.

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Q: In Georgia if you sell your car to a dealer who pays the sales tax?
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