Georgia Reforms Motor Vehicles Taxes

Tuesday, April 2nd, 2013

 
 
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Georgia
General

Under a new law that took effect March 1, 2013, Georgia has changed how motor vehicles are taxed.

Motor vehicles required to be registered in Georgia are no longer subject to the state sales and use tax, nor are they subject to the annual ad valorem property tax, also known as the "birthday tax." Additionally, with the notable exception of the Transportation Special Purpose Local Option Sales Tax, these vehicles are exempt from local sales and use tax. Instead, motor vehicles will now be subject to an annual state and local title tax based off of the vehicle's fair market value. This tax, known as the "title ad valorem tax," or TAVT, must be paid to the county tag agent as a prerequisite to registration.

Dealers of new and used cars are no longer required to collect tax on their sales and remit it to the state. However, as a courtesy to their customers, dealers are permitted to collect the new title tax and deliver it to the county tag agent. Note that individual sales will no longer qualify for the state's casual sale exemption. As the tax is imposed on title registration, non-titled vehicles like golf carts, all-terrain vehicles, and trailers are not subject to the tax.

The sales tax exemption is officially codified at Ga. Stat. Ann. sec. 48-8-3(95) and the new tax is found at Ga. Stat. Ann. sec. 48-5C-1. The state Department of Revenue has compiled a list of frequently asked questions.


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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