Georgia's New Vehicle 'Title Tax' Takes Effect March 1

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, 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.

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.
John February 17, 2013 at 09:03 PM
If you bought a vehicle since January 2012 AND paid Georgia sales tax, you can apply at the tag office after March 1 to have the tax applied against your title fee and avoid ad valorem tax.:) If you bought from an individual and didn't pay sales tax, you can still opt to pay the title fee and opt out of recurring ad valorem taxes going forward. The state has a website that helps you calculate which is best for you, if you keep a car a long time, it may be worth paying the fee. :)
Bob Sagoes February 18, 2013 at 03:32 PM
If the car is paid off then why should you have to pay a tax on it. Why should anyone have to pay a tax on a car that is over fifteen to twenty years old? This is not right. I do guess they have to cash form some of us no matter what.
John February 18, 2013 at 03:50 PM
If you don't buy another car, nothing changes, unless you opt in to the new system. You will keep paying ad valorem tax every year. On a 15 year old car your ad valorem shouldn't be very much, it may make more sense to just keep paying it annually.
Zaasrd Sitor February 25, 2013 at 08:03 AM
This is a tax and all taxes are bad, it is worded in such a way that the population can be cajoled to understand what is the best form of public revenue that does not impede behavior and sales as this tax does. And that is on the title to land's location value. Land cannot be hidden, nor moved, and when revenue is raised by the ad valorem method, the most valuable land becomes the most utilized as a consequence. Before readers start tangents of housing, homes, mortgages, foreclosures, etc. All these norms are political manifestations. A dwelling is what people reside in. And to the extent that a dwelling is taxed, changes the behavior of the occupant in order to evade and aviod a tax on it. History has many lessons here. Windows being bricked up, Chimneys being joined etc. States & Counties should shift their revenue raising capacity from taxing people and their buildings, products and service to the rental value of land only. This is a site revenue society that replaces land price and taxes so that the cost of living is non existent as they are two highest cost of living that are the cause of inflation. As there is no production of land. A higher level of freedom would arise incomparable to what the reader has experienced thus far. The first task is to get the annual site value of land on the property assessment notice. Even if everybody has to write it on by hand !!!
jMichael February 26, 2013 at 12:58 PM
"This is a tax and all taxes are bad." I'm sure you'll feel differently when your neighbor breaks in to your double-wide and steals your favorite bowling shirt.


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