The taxation on vehicles across the state will change in
2013 due to the Motor Vehicle Tax Reform.
Starting on March 1, vehicles that are purchased on or after that date will be
exempt from the sales and use tax and the annual ad valorem tax. The taxes will
be replaced with a one-time tax called the title ad valorem tax fee (TAVT).
The TAVT is based on the fair market value of the vehicle, which is determined
by averaging the current retail and wholesale values. The fair market value can
be appealed, according to the Georgia Department of Revenue fact sheet
concerning the tax reform.
The tax rate is 6.5 percent in 2013, 6.75 percent in 2014 and 7 percent in
2015, according to the Georgia Department of Revenue. The rate may be adjusted
after 2015, but it cannot exceed 9 percent.
The tax will be paid every time the vehicle changes ownership, unless
transferred to an immediate family member, which is a spouse, sibling, parent,
child, grandparent or grandchild.
In the case of a transferred or inherited vehicle, the owner having to pay the
tax depends on if the former owner paid it or not. The Georgia Department of
Revenue states that if the former owner did not pay the TAVT then the new owner
can choose to continue to pay the ad valorem tax and not pay the TAVT or could
pay the TAVT. If the former owner did pay the TAVT then, the new owner’s rate
will be .5 percent.
It will be collected by the county’s tax commissioner and divided between the
state, county, cities and school district. The local share of the tax will be
43 percent in 2013, 45 percent in 2014 and 2015, according to documents from
the Association County Commissioners of Georgia.
The Georgia Department of Revenue website states, if a person lives in one of
the three regions that passed the Transportation-Special Purpose Local Option
Sales Tax will also be required to pay up to $50 in sales tax when purchasing a
vehicle. Houston County is not in one of the three districts that approved the
T-SPLOST.
Veterans who were exempt for ad valorem tax are also exempt from the title tax.
New residents in the state must pay 50 percent of the title tax within 30 days
of moving and the rest must be paid within the next 12 months.
Companies that lease vehicles will have to pay the tax.
The owners of non-titled vehicles, pull-behind campers,
vehicles that cannot have a title issued and trailers will continue to pay the
ad valorem tax.
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