Jul 25, 2014
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New Georgia Vehicle 'Title Tax' Takes Effect Next Month

HB 386 replaces the annual ad valorem tax on newly purchased vehicles.

New Georgia Vehicle 'Title Tax' Takes Effect Next Month

The so-called "birthday tax" that Georgia vehicle owners pay will end in March 2013—for people who purchase a new vehicle.

Effective March 1, 2013, House Bill 386 removes the sales tax and the annual ad valorem tax on newly purchased vehicles.

Instead, there will be a new title tax of 6.5 percent of the fair market value, as identified by the Georgia Motor Vehicle Assessment Manual, in 2013—only due each time the vehicle is sold and titled.

It applies to dealer sales as well as sales between individuals, but excludes non-titled vehicles, such as trailers and other non-motorized vehicles, which will remain subject to ad valorem tax.

You'll pay this tax in the county where you register the vehicle.

However, you will continue to pay the annual ad valorem tax on vehicle(s) that you currently own. Details of the new law include:

  • If you purchase a vehicle in Georgia, then title and register it between January 1, 2012, and March 1, 2013, you may be eligible to opt-in to the new title ad valorem tax, thus eliminating the annual ad valorem bill you are used to getting.
  • The time period that qualified owners will be able to opt in is March 1, 2013, to January 1, 2014.
  • New residents moving into Georgia on or after March 1, 2013, will be required to pay 50 percent of the TAVT within 30 days of moving to the state and the remaining 50 percent must be paid within the next 12 months.
  • Motor vehicle owners who owned the vehicles prior to January 1, 2012, will continue to receive an annual ad valorem bill.

For more comprehensive information, a title ad valorem tax calculator and frequently asked questions, go to newtitletax.com

Will the new Georgia tax affect your decision to purchase a new vehicle? Let us know in the comments.

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