New Georgia Vehicle 'Title Tax' Takes Effect in March 2013

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

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, Bartow County Tax Commissioner Steve Stewart said in a statement, attached.

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.

Will the new Georgia tax affect your decision to purchase a new vehicle? Use the comments box below to respond.

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

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JustSayin' February 16, 2013 at 04:33 PM
If it wasn't broke why fix it? This law should be repealed or at least postponed and rewritten. We are turning neighbors into snitches if someone moves to Georgia and doesn't get a tag within 90 days. Local county law enforcement is now on the hook to ake sure everyone is complying with the law. The bill, in it's present form will all but kill the car leasing business, at least here in Georgia. If you have just bought a new car, let's say a high end model, you are on the hook for $2500 just to get a tag for your car, you get transfered to out of state after a year. Congratulations, you just got screwed! Call your local representative in Atlanta and ask them to repeal this law.
Michael February 17, 2013 at 05:43 PM
Every one of our neighboring states has a similar law and Georgia was at a disadvantage. This way everyone pays the tax when the car is purchased and only one time. It is .5 percent less than you are paying now which is 7%.
Stacy K March 04, 2013 at 10:27 PM
If I understand this correctly, the one time ad valorem tax eliminates sales tax when you purchase a vehicle. So in essence, if you are buying from a dealer then you come out ahead because you aren't paying sales tax or the annual tax anymore. If you buy from an individual then you seem to break even - before you didn't have to pay sales tax but now you are paying the lump sum up front for ad valorem rather than annually. So more up front when buying from an individual - but I guess saves you in the long run if you don't move to another state.


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