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 7.0% for those vehicles acquired or new residents beginning Jan 01, 2015.
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 or new residents to the State of Georgia.
TAVT is not an annual tax - it is charged to the purchaser at such time the vehicle is sold & re-titled.
TAVT is caluculated as a percentage (7.0%) 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.
OTHER IMPORTANT INFORMATION:
A vehicle purchased prior to 03/01/2013 currently subject to annual ad valorem tax will continue to be taxed as such until the vehicle is sold & re-titled.
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 seven (7) day requirement is contained in Georgia Law (O.C.G.A. 40-2-29).
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. (O.C.G.A. 40-2-29).
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.