A major component of the tax reform (HB 386) enacted by the General Assembly in 2012 is the creation of a new system for taxing motor vehicles registered in Georgia.  These changes are complex, so it is important for county officials, county tag and title office staff and the public to learn more.  The information below outlines the major changes and provides resources to help county offices and the public transition to this new system.

Resources for Counties and Individuals:

• An Overview of the Transition from the Current Ad Valorem Tax to the New Title Ad Valorem Tax on March 1, 2013 
• Questions & Answers on the New Title Ad Valorem Tax
• ACCG Press Release:  System for Taxing Motor Vehicles to Change March 1, 2013 (January 16, 2013)
• Georgia Department of Revenue Title Ad Valorem Tax Calculator
• Changes to Motor Vehicle Tax Reform (HB 226 and HB 463)
• Cobb County Tax Commissioner Gail Downing Explains Motor Vehicle Tax Reform (YouTube) – Cobb County Tax Commissioner Gail Downing has given ACCG permission to share this video as an educational tool.

TAVT Changes as a Result of HB 266

Governror Nathan Deal signed HB 266 on Thursday, March 7, 2013.  As a result, several changes for the title ad valorem tax system will go into effect immediatley. 

The final legislation authorizes the Commissioner of the Department of Revenue (DOR) to implement a TAVT for “Buy Here Pay Here” transactions that is 2.5 percentage points less than the regular TAVT.

HB 266 also makes several administrative changes for the administration and implementation of the TAVT system.

Please review the following information from the Georgia Department of Revenue:

DOR Bulletin: Summary of Changes to the TAVT from HB 266

DOR Bulletin: Fair Market Value of New Motor Vehicles

DOR Bulletin:  Annual Ad Valorem Exemptions & Opt-In

In addition, ACCG has created a summary of HB 266 to assist county officials. Watch for additional updates from the Department of Revenue on implementing these changes. 

Training Videos

 

The Georgia Department of Revenue has provided training on the motor vehicle title ad valorem tax (TAVT) across the state to assist counties in implementing these changes.  ACCG recorded this training as a service to counties and is providing links to key issues that were covered below.  The training was led by Vicki Lambert, Director of Local Government Services Division for the Department of Revenue.

• Overview of changes
• Taxable value of the vehicle
• What happens March 1?
• Calculating the Title Ad Valerom Tax
• Revenue Distribution
• Opt-in Provision for Vehicles Purchased between 1/1/12 and 3/1/13
• Inheritance or Family Transfers
• Dontations to Non-Profits
• Rental Cars
• Exemptions
• Vehicles Transferred from Out-of-State
• Leased Vehicles

Media Coverage

• Title Tax Replaces Ad Valorem Tax March 1 (WXIA-TV Channel 11, January 29, 2013)

Additional Information for Counties:

• Title Ad Valorem Tax Revenue Distribution