H B 386 goes into effect March 1,2013, which will eliminate the annual ad valorem tax on new purchases of vehicles. Beginning March 1, when you purchase a vehicle from a car dealer, you will no longer be required to pay sales tax. Instead, when you title the vehicle, you must pay a one time Title Ad Valorem Tax fee ( TAVT) of 6.5 percent of the vehicles fair market value, in addition to the $20 registration and $18 title transfer fee. From then on you will only be required to pay the $20 decal fee each year by your birthday.
Previously, if you bought a vehicle from an individual, you were not required to pay sales tax. Now, however, beginning March 1, you will be required to pay the TAVT of 6.5 percent of the vehicle’s fair market value when you title it, in addition to the $20 registration fee and $18 title transfer fee. From then on, you too will only be required to pay the annual $20 decal fee each year by your birthday.
The fair market value that is used in computing the TAVT is the value assigned to your vehicle by the Georgia Department of Revenue or the bill of sale value, whichever is higher. If you believe the value assigned to your vehicle is too high, you will have the right to appeal it, but you must first pay the TAVT.
For any vehicle purchased in Georgia after January 1, 2012, but before March 1, 2013, the owner has the right to opt into the new TAVT system any time between March 1 and December31 ,2013. In computing the TAVT, you will be given credit for any sales tax or ad válorem tax that you had previously paid.
For vehicles purchased prior to January 1, 2012, owners will still pay annual ad valorem tax on their vehicles.
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