Georgia Reforms Motor Vehicles Taxes

Tuesday, April 2nd, 2013

 
 
Share
Link
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.


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

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.

Economic Nexus in Washington

Monday, August 13th, 2018 -Effective October 1, 2018, certain out-of-state businesses will be required to collect and pay Washington sale...

Economic Nexus in Michigan

Thursday, August 9th, 2018 -Effective October 1, 2018, certain out-of-state sellers will be required to collect and pay Michigan sales or ...

Georgia Suspends Tax on Jet Fuel

Wednesday, August 8th, 2018 -Effective August 1, 2018, Georgia no longer collects state level sales and use tax on jet fuel. Georgia tax...

Employment Services Contracts for Permanent Employees Not...

Monday, August 6th, 2018 -The Ohio Board of Tax Appeals recently addressed whether contracts entered into by an employment services agen...

Alarm Systems and Monitoring Not Taxable in Missouri

Wednesday, August 1st, 2018 -The Missouri Department of Revenue recently released a ruling determining that (1) security, fire, tornado, an...

Economic Nexus in Utah

Wednesday, August 1st, 2018 -Effective January 1, 2019, certain out-of-state sellers will be required to collect and pay Utah sales or use ...