MOTOR VEHICLE TITLES
THE NEW TITLE AD VALOREM TAX (“TAVT”)
Effective Friday March 1, 2013 House Bill 386 removed both sales-tax and annual ad valorem taxes from vehicles purchased March 1 and thereafter, and replaced them with a single, one-time Title Ad Valorem Tax (“TAVT”).
Calculated as a percentage against the higher of (1) sales price, or (2) fair-market-value, the “TAVT” rate is 6.5% for those vehicles purchased 03/01/13 through 12/31/13. The rate increases to 6.75% and 7% for vehicles purchased during 2014 and 2015, respectively.
For more information regarding the new Title Ad Valorem Tax, please visit the Georgia Department of Revenue’s FAQ page located here.
VEHICLES PURCHASED ON OR AFTER MARCH 1, 2013:
If you purchase a vehicle on or after March 1, 2013, you will pay the “TAVT” to the Tag Office in your County of residence at the time of title application & registration. TAVT must be paid prior to the issuance of a Georgia Title & License Plate.
TAVT applies to vehicles purchased from individuals (known as private-sales), as well as those purchased from dealerships and other businesses.
TAVT is not an annual tax – it is charged to the purchaser at such time the vehicle is sold & re-titled.
The TAVT is a percentage (6.5% in 2013) of the vehicle sale price, or the vehicle’s clean fair-market retail value, whichever greater.
Any trade-in value, rebate, or cash discount is deducted from the vehicle’s taxable value prior to calculating the amount of TAVT due.
VEHICLES PURCHASED JANUARY 1, 2012 THROUGH FEBRUARY 28, 2013:
Citizens who purchased a vehicle from January 1, 2012 through February 28, 2013 may be eligible to opt-in to the new “TAVT” program, and no longer be subject to annual ad valorem taxes on the recent purchase.
Qualifying citizens choosing to opt-in will receive credit for any Georgia sales tax paid, along with any previously paid ad valorem taxes on the vehicle. The combined credit value may be no greater than the total amount of “TAVT” due. Any balance of “TAVT” that may remain after credits are applied must be paid in order to opt-in.
THE FOLLOWING DOCUMENTATION IS REQUIRED
PLEASE SUBMIT ALL ABOVE DOCUMENTATION TO OUR OFFICE VIA:
OR BY MAILING TO OR VISITING EITHER OF THE FOLLOWING LOCATIONS:
OTHER IMPORTANT INFORMATION:
All vehicles purchased prior to January 1, 2012, as well as those purchased between 01/01/2012 and 03/01/2013 not “opted-in”, will continue to be subject to annual ad valorem tax until re-sold.
All other existing annual vehicle registration requirements, including annual tag renewal fees, decals, and emission tests (if applicable), remain in effect for all vehicles.
LENGTH OF TIME TO APPLY FOR TAG & TITLE
FOR PRIVATE SALES:
Both Registration and Title for a newly purchased motor vehicle from a source other than a registered dealer must be applied for at the new owner's County Tag Office no later than seven (7) business days after the Date of Purchase. The new seven (7) day requirement is contained in Georgia Law (O.C.G.A. 40-2-29) and replaces the former thirty (30) day requirement for making an application for title and registration.
If the Certificate of Title is in the possession of a security interest or lien holder at the time of application, The County Tag Office may issue a temporary license plate, valid for thirty (30) days. If the transferor does not provide a title to the transferee within five (5) days prior to the expiration of the initial thirty (30) day temporary license plate, the County Tag Office may issue a single thirty (30) day extention of the temporary license plate.
PURCHASED FROM REGISTERED DEALER:
The owner of a motor vehicle purchased from a registered dealer will be issued a dealer temporary license plate from the registered dealer at the time of purchase. The temporary license plate is valid for thirty (30) days.
Only a temporary license plate issued by a registered dealer or the County Tag Office is considered valid. Any other type of temporary license plate ("Tag Applied For", etc.) is considered unlawful. Operation of a motor vehicle displaying a non-valid license plate or non-valid temporary license plate shall be punishable as a misdemeanor subject to fines.