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, according to a Gwinnett County newsletter.
Instead, there will be a new title tax of 6.5 percent in 2013 -- only due each time the vehicle is sold and titled. It applies to dealer sales as well as sales between individuals.You'll pay this tax in the county where you register the vehicle.
-- Will the new Georgia tax affect your decision to purchase a new vehicle? Share your thoughts in the comments below.
However, you will continue to pay the annual ad valorem tax on vehicle(s) that you currently own.
Other aspects of the new law:
- The new title tax is based on a percentage (6.5 percent in 2013) of the fair market value of the vehicle, not the sales price, as determined by the Georgia Department of Revenue.
- If you purchase a vehicle in Georgia between January 1, 2012, and March 1, 2013, you have the option of paying the new title tax instead of the current annual ad valorem tax. You have from March 1, 2013, until December 31, 2013, to opt into the new program. Note: Vehicles purchased out-of-state are not eligible to opt in.
- All other existing annual vehicle registration requirements, including annual tag renewal fees, decals, and emission tests (if applicable), remain in effect for all vehicle owners.
For more information and a title tax calculator, visit www.GwinnettTaxCommissioner.com.
This information was obtained from Gwinnett News For Neighborhoods newsletter.