NEW VEHICLE TAX WILL PHASE OUT VEHICLE “BIRTHDAY TAX”.
What does the new law say about my Ad Valorem taxes for my vehicle?
Beginning March 1, 2013, those who purchase and title vehicles in Georgia will be exempt from sales tax and the annual ad valorem tax based on a new law (House Bill 386), passed in the 2012 Georgia legislature. A one-time 6.5% title ad valorem tax will be charged based on the fair market value of the vehicle. As of March 1, 2013, all initial title applications must be made in the purchaser’s county of residence.
If this new fee is one time, do I still have to pay anything each year?
The owner will still be required to pay the $20.00 annual registration fee, as well as, all specialty tag fees and any applicable penalties. Current valid insurance and passing emission inspections, as applicable, are still required.
What if I purchased my vehicle in 2012, can I still take advantage of this new Title Tax?
House Bill 386 also allows taxpayers who purchased a vehicle between January 1, 2012 and February 28, 2013 to opt to pay a one-time Title Ad Valorem Tax (TAVT) fee of 6.5% fee in lieu of yearly Ad Valorem taxes. These taxpayers may apply the amount of any sales tax, as well as the amount of the 2012 ad valorem they paid for the vehicle toward the 6.5% TAVT fee as long as they opt-in before December 31, 2013. The TAVT rates are scheduled to be increased in the coming years.
What if I purchased my vehicle from my neighbor?
This would be considered as a casual sale. As of March 1, 2013, initial title applications must be made in the purchaser’s county of residence. The TAVT must be paid in the purchaser’s county of residence at the same time the application for title is made. For non-dealer sales (casual sales) the buyer must remit the application for title and the TAVT payment within 30 days of purchase of the vehicle. If paid later than 30 days of the purchase of the vehicle, there will be a penalty of 10% of the amount of the TAVT owed plus an additional 1% per month for every month late. All penalties must be paid at the time the title application is made. The title will not be printed or mailed until the required TAVT is paid.
I purchased my vehicle from the Dealership. Do I have 30 days to process my title application?
As of March 1, 2013, initial title applications must be made in the purchaser’s county of residence. The TAVT must be paid in the purchaser’s county of residence at the same time the application for title is made. If the vehicle is purchased from a dealership, the dealer will process the paperwork in the purchaser’s county of residence and pay all applicable fees.
If the purchase is made at a dealership, the dealer has 10 days from the date of purchase to remit the title application and the TAVT payment to your county tag agent. If remitted later than 10 days from the date of purchase, the dealer is liable for 5% of the TAVT owed plus an additional 5% for each month payment has not been remitted.
I sold my vehicle to my son. What does my son have to pay to register his new vehicle?
If the vehicle was subject to the annual ad valorem tax at the time the vehicle is transferred to an immediate family member, the vehicle will continue to be subject to the same annual ad valorem tax unless the immediate family member taking possession of the vehicle opts in to the TAVT. If the family member taking possession of the vehicle opts in to the TAVT, the TAVT will be due at the full 100% rate. An affidavit signed by the immediate family member stating that he/she is opting in to TAVT will need to be completed and attached to the title application. An immediate family member is considered one’s spouse, parent, child, sibling, grandparent or grandchild.
I inherited a vehicle. Can I opt in to the TAVT?
If the vehicle was subject to the annual ad valorem tax upon the death of the owner, the vehicle will continue to be subject to the same annual ad valorem tax unless the immediate family member inheriting the vehicle opts in to the TAVT. If the person inheriting the vehicle opts in to the TAVT, the TAVT will be due at the full 100% rate. An affidavit signed by the immediate family member stating that he/she is opting in to the TAVT will be completed and attached to the title application. If the vehicle was subject to the TAVT upon the death of the owner, the vehicle will be subject to the TAVT fee at a reduced rate of 0.50%. In order to qualify for the reduced TAVT, the TAVT must have already been paid on the vehicle by the owner at the time the immediate family member inherits the vehicle. The immediate family member inheriting the vehicle will complete an affidavit stating his/her relationship to the deceased. The affidavit will require notarization. Standard inheritance documents will still be required (Letter of Testamentary, copy of will, T-20 form at our tax office.)
I leased my vehicle. What do I have to do to opt in to the TAVT?
Leased vehicles are subject to the TAVT fee at the full rate. New residents moving in to Georgia on or after March 1, 2013, are required to pay the TAVT on leased vehicles.
For those that purchased a vehicle and registered in Georgia, is there any way I could do a comparison between what I would pay if I stayed on the annual ad valorem tax system and if I moved to the TAVT?
The Title Ad Valorem Tax Calculator in now available on the State’s website at:
http://onlinemvd.dor.ga.gov/Tap/welcome.aspx.
- Step 1. Enter your VIN information
- Step 2. Verify the information such as purchase date; then enter your county information and your vehicle type. Please enter information such as any sales tax paid (if applicable) then click ‘calculate.’
- Step 3. Review the estimates to decide whether to opt in to the new Title Ad Valorem Tax or remain in the current annual ad valorem system based upon the number of years you believe you will own the vehicle.
What do I need to do if I am eligible to pay the one-time TAVT?
Taxpayers eligible to pay the one-time TAVT 6.5% fee must come into one of their County Tax Commissioner’s Offices to opt in to TAVT.
What if I did not purchase a vehicle in 2012?
Taxpayers who have not purchased a vehicle since January 1, 2012 will remain under the old Ad Valorem tax system.
With over 12,000 taxpayers eligible to opt-in to TAVT each month what should I expect when I come to the Tax Commissioner’s Office?
The volume for the opt-in provision of the new title ad valorem tax will be in addition to the normal volume of taxpayers and transaction normally done at tax offices. Expect long lines in the tax offices due to the increased volume of transactions and the longer transaction time needed for TAVT fee calculation and collection. Please be prepared by bringing the necessary documentation and your patience during the process.
As a Fulton County Citizens who purchased a new vehicle in 2012 and wants to opt into the TAVT, what do I need to bring to the tax office?
For those Georgia citizens who purchased and registered a new vehicle in 2012 and want to opt into TAVT they will need to bring to the Tax Commissioner’s Office their Driver’s License and Bill of Sale.
What if I am coming to register from out of State?
Taxpayers coming from out of state will be required to pay 50% of the TAVT fee for each of their vehicles at the time of registration and pay the other 50% within the following twelve months. Taxpayers coming from out-of state will also be required to bring to the tax office their Driver’s License, Bill of Sale, Proof of Georgia Insurance, current mileage, title, lien holder information, current registration, proof of residency and if applicable, a passing Georgia emission test.
What if I purchased my vehicle in 2012 but in another state other than Georgia?
Any vehicle purchased out of state (casual or dealer sale) does not quality to opt in to the TAVT. The vehicle must be purchased in Georgia in order to opt in.
Will the appraised value of my vehicle be the same as what I paid for it when calculating the amount I must pay in ad valorem taxes?
It is very possible that the appraised value of vehicles may be higher than the purchase price of the vehicle. Citizens may appeal to the Tax Assessors’ Office the value of their vehicle.
Where can I go to complete the TAVT process?
Fulton County has five full service tax offices throughout the county (Tax Office hours are from 8 AM to 5 PM Monday thru Friday):
- 141 Pryor Street, Atlanta, Georgia 30303
- 2841 Greenbriar Pkwy, Suite 106, Atlanta, Georgia 30331
- 5600 Stonewall Tell Road, College Park, Georgia 30349
- 3155 Royal Drive, Suite 165, Alpharetta, Georgia 30004
- 7741 Roswell Road, Sandy Springs, GA 30350
For more Frequently Asked Questions go to:
https://www1.fultoncountytaxes.org/motor-vehicles/whats-new.aspx#AA
Please visit us on the web at www.fultoncountytaxes.org or call the Fulton County Tax Commissioner’s Office at (404) 730-6100 or Fulton County Customer Service at (404) 612-4000 for information.
You may also find helpful TAVT information on the Georgia Department of Revenue’s website: www.dor.ga.gov.
