New Motor Vehicle Tax Law Effective March 1, 2013

A new law that changes the way motor vehicles are taxed in Georgia goes into effect today. Motor vehicles purchased on or after March 1, 2013 and titled in Georgia will be exempt from sales and use tax and the annual ad valorem tax known as the “birthday tax.”

Instead, buyers will pay a one-time tax that is imposed at the time the vehicle is titled. The new tax, referred to as the Title Ad Valorem Tax (TAVT), will be based on the fair market value of the vehicle. For 2013, the TAVT rate is 6.5% of the fair market value as appraised by the Georgia Motor Vehicle Assessment Manual. The appraised value may not reflect the actual price paid for the vehicle.

The TAVT is not imposed on non-titled vehicles and trailers. Additionally, other non-motorized vehicles that require a title will remain subject to sales and use tax and the annual ad valorem tax.

Vehicles purchased or acquired between January 1, 2012 and February 28, 2013 may be eligible to opt-in to the new TAVT program or remain in the annual ad valorem tax system with payments due on an owner's birthday.

Vehicles acquired prior to January 1, 2012 will stay in the old system. Owners will be subject to the annual ad valorem tax on their birthday. There is no opt-in provision for vehicles acquired prior to January 1, 2012.

 The Georgia Department of Revenue’s website provides a TAVT calculator that will help owners who are eligible to opt-in decide which option is best for them.

Owners who choose to opt-in to the TAVT system will need to visit the tag office between March 1, 2013 and December 31, 2013. The Athens-Clarke County Tag Office is located at 3025 Lexington Road and is open Monday through Friday between 8:00 a.m. and 5:00 p.m. Careful consideration and caution should be used when making the decision to opt-in to the TAVT system or remain under the "birthday tax" program. If a vehicle owner has opted-in, there is no opportunity to revert back to the old system.

Whether or not a vehicle owner uses the TAVT system or the old system, vehicle tag renewals will still take place annually and are due by an owner's birthday.

To view frequently asked questions concerning the new TAVT system or to use the TAVT calculator, visit the Georgia Department of Revenue website .

For more information, contact Mitch Schrader, Athens-Clarke County Tax Commissioner, at 706-613-3120 or via email.