HB 386 goes into effect today, Friday, March 1; which eliminates the annual ad valorem tax on new purchases of vehicles. Beginning March 1, when you purchase and title a vehicle from a car dealer or individual, you must pay a onetime Title Ad Valorem Tax fee (TAVT) of 6.5 percent this year of the vehicles fair market value of in addition to the $20 registration and $18 title transfer fee.
Anyone who purchased a vehicle in Georgia after January 1, 2012, but before March 1, 2013 has the right to opt into this new TAVT system. You may do this any time between March 1 and December 31, 2013.
If you bought a vehicle from a dealer during this time frame, I recommend your opting into this TAVT system because you will be given credit for any sales tax that you previously paid the dealer. You must bring in your bill of sale showing this amount.
However, if you bought a vehicle from an individual you did not pay any sales tax and therefore will not receive a credit against this 6.5 percent fee. For this reason, I do not suggest you opt into this TAVT unless you plan to keep the vehicle for several years in order to recoup this additional cost.
Anyone who does not opt in or who purchased a vehicle before January 1, 2012 will remain in the old system of paying ad valorem tax annually by their birthday.
Respectfully,
J. Berry Cook
Tax Commissioner
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