Georgia's new auto title ad valorem tax, GA House Bill 386
#1
03-05-2013 | 01:17 PM
Georgia's new auto title ad valorem tax, GA House Bill 386
Georgia's new auto title ad valorem tax, GA House Bill 386
• Under the new law, the fee for all vehicles titled between March 1 and the end of 2013 will be 6.5 percent of the worth of the vehicle. The figure will rise to 6.75 percent for 2014, and 7 percent in 2015. It eventually could climb as high as 9 percent of the vehicle’s worth.
• Those who bought cars between January 1, 2012, and February 28, 2013, will have the option to pay the ad valorem “birthday” tax for as long as they own the vehicle, or to opt into the new title tax. The opt-in period lasts from March 1 until the end of 2013. Those who opt in will not get refunded for any ad valorem they already paid, but will get credit for paying sales tax if the car was not purchased in a private sale. Purchases from out of state dealerships are not eligible for the opt-in. Those paying the new Title Ad Valorem Tax will pay only the annual tag fee for the years following the purchase.
• The old ad valorem tax system will continue to exist for vehicles titled in 2011 or earlier.
• People who lease cars will continue to pay sales tax and the dealership will pay the title ad valorem tax. Dealerships could include the cost of that tax in their fees.
• People who move into Georgia with a car after March 1 will have to pay the new tax on any vehicles entering into the state when they register their cars in Georgia. New out-of-state residents will have to pay half the fee up front, and will have a year to pay the rest.
• Vehicles passed between immediate family members — spouses, parents, children, siblings, grandparents or grandchildren — will pay a reduced fee of 0.5 percent of the car’s worth to title the vehicle, provided the full one-time title ad valorem tax already has been paid.
• People who were exempt from paying the annual car tax, such as disabled veterans, are exempt from the new tax.
• Vehicles that are older than 1985, and are not required to have titles, are only affected if the owner decides to get a title after March 1.
• Vehicles that aren’t titled, such as boats and trailers, aren’t affected by the new law.
This is extremely important if any of you Georgia residents have purchased a new/used auto between Jan 2012 - 1 Mar 2013. You should file immediately with your local county tax commissioner the "Affidavit to Opt in to the Title Ad Valorem Tax System" form. In doing so you will no longer be required to pay your annual Ad Valorem tax at the time of your annual Georgia Tag renewal on your birthday. Personally I am saving about $1,8000 annually (now $20 per year tag fee) in Dekalb County on my 2011 CAB, purchased used in April 2012 by having filed this TAVT form with the County Tax Commissioner.
For more info you can go to http://onlinemvd.dor.ga.gov/TAP/faqs.aspx
For more info you can go to http://onlinemvd.dor.ga.gov/TAP/faqs.aspx
ATTENTION!
Georgia’s New TITLE AD VALOREM TAX
Beginning March 1, 2013, the new Title Ad Valorem Tax law will bring changes to the way vehicles are registered, titled and taxed in Georgia. The annual ad valorem tax, paid on a person’s birthday, will remain for people who owned their cars before 2012. But for everyone else, a new law will mean changes to the way vehicles are taxed. For some, it will mean big savings. For others, it will be a big expense.• Under the new law, the fee for all vehicles titled between March 1 and the end of 2013 will be 6.5 percent of the worth of the vehicle. The figure will rise to 6.75 percent for 2014, and 7 percent in 2015. It eventually could climb as high as 9 percent of the vehicle’s worth.
• Those who bought cars between January 1, 2012, and February 28, 2013, will have the option to pay the ad valorem “birthday” tax for as long as they own the vehicle, or to opt into the new title tax. The opt-in period lasts from March 1 until the end of 2013. Those who opt in will not get refunded for any ad valorem they already paid, but will get credit for paying sales tax if the car was not purchased in a private sale. Purchases from out of state dealerships are not eligible for the opt-in. Those paying the new Title Ad Valorem Tax will pay only the annual tag fee for the years following the purchase.
• The old ad valorem tax system will continue to exist for vehicles titled in 2011 or earlier.
• People who lease cars will continue to pay sales tax and the dealership will pay the title ad valorem tax. Dealerships could include the cost of that tax in their fees.
• People who move into Georgia with a car after March 1 will have to pay the new tax on any vehicles entering into the state when they register their cars in Georgia. New out-of-state residents will have to pay half the fee up front, and will have a year to pay the rest.
• Vehicles passed between immediate family members — spouses, parents, children, siblings, grandparents or grandchildren — will pay a reduced fee of 0.5 percent of the car’s worth to title the vehicle, provided the full one-time title ad valorem tax already has been paid.
• People who were exempt from paying the annual car tax, such as disabled veterans, are exempt from the new tax.
• Vehicles that are older than 1985, and are not required to have titles, are only affected if the owner decides to get a title after March 1.
• Vehicles that aren’t titled, such as boats and trailers, aren’t affected by the new law.
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