TITLE AD VALOREM TAX
Motor vehicles purchased on or after March 1, 2013 and titled in this state are exempt from sales and use tax and annual ad valorem tax, also known as the "birthday tax." These taxes were replaced by a one-time tax that is imposed on the fair market value of the vehicle called the title ad valorem tax ("TAVT").
For a motor vehicle with a date of purchase from March 1, 2013 through December 31, 2013, the rate of TAVT was 6.5%.
On January 1, 2014 the TAVT rate will be increased from 6.5% to 6.75%.
Any motor vehicle purchased in 2014 will be subject to the 6.75% TAVT rate.
The rate will increase on January 1, 2015 from 6.75% to 7%.
Basic facts about TAVT:
If you purchased your vehicle between January 1, 2012 and February 28, 2013, you can opt-in to TAVT at the 6.5% rate. The deadline for opting in is Feb. 28, 2014. You will not be able to opt-in after this date.
Out-of-state purchases can opt-in, but credit is only given for Georgia sales tax paid.
A Georgia resident that pays the TAVT and then moves out of state does not have to pay TAVT again, for the same vehicle, if they return to the state.
To appeal, the customer must pay 100% of the TAVT due; not the previous 85% of the TAVT.
Leased vehicles pay the 6.75% TAVT rate but do not pay sales and use tax. If the lessee purchases the leased vehicle, TAVT will be due at the time of purchase.
Taxpayers may use the tool above to estimate the amount of title ad valorem tax they owe if they are eligible to exercise the "opt-in" provision. It allows a taxpayer to estimate the amount they will owe if they are considering purchasing a new vehicle after March 1, 2013.
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