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Car Owners To Pay One-Time Title Ad Valorem Tax

February 25, 2013
New cars stretch out at a dealership.

For the most up-to-date information, read our 2016 ad valorem tax blog post.

In a comprehensive tax reform bill last year, legislators changed how the state taxes motor vehicles. Starting this Friday, car owners who purchase new or used vehicles will no longer pay the annual ad valorem tax but instead pay a one-time title tax. The new Title Ad Valorem Tax, or TAVT, will replace both the purchase sales tax and the yearly ad valorem fees.

How This Affects You

  • If you purchased your motor vehicle before January 1, 2012, you'll continue to pay the annual "birthday tax."
  • If you purchased your motor vehicle after January 1, 2012 but you purchase before this Friday, you can choose to pay either the annual tax or the one-time title tax. By December 31, you'll need to decide which way you'd like to pay the tax.
  • If you purchase your motor vehicle on or after this Friday, you'll pay the one-time title tax. During 2013, new car owners will pay a TAVT rate of 6.5%. By 2015, the rate will adjust upward to 7%.

What Else You Should Know

  • If you buy your car from a dealership out of state, you'll still have to pay the tax.
  • If you're new to the state, you'll pay half of the TAVT within 30 days of establishing residency. You'll pay the other half of the TAVT within the year.
  • If you're a veteran exempt from paying the annual ad valorem, you're also exempt from paying the TAVT.

For more information on the changes, visit the Georgia Department of Revenue to read frequently asked questions.

 

Last updated April 27, 2017.

GeorgiaGov Writer Noralil Ryan Fores

About the Author

Noralil Ryan Fores writes about business, taxes, elections and the environment for GeorgiaGov. She's a graduate of Florida State University's film school and Syracuse University's journalism program.

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