Ad Valorem Tax Fees Change in 2013
The Georgia General Assembly passed a tax reform bill that will change how and when you pay your ad valorem tax on your vehicle.
The good news is the "birthday tax" we've all been paying when we renew our car tags has been eliminated - well, sort of. It only affects vehicles purchased after March 1, 2013.
During this year's legislative session, the Georgia General Assembly passed a tax reform bill that removes the sales tax and ad valorem tax on newly-purchased vehicles.
However, there are new taxes to pay - after March 1, 2013 a new title ad valorem tax fee of 6.5 percent in 2013 and 6.75 percent in 2014 will be added (for vehicles purchased after the first day of March next year).
The new law affects both brand new vehicles and previously-owned vehicles because the tax isn't paid annually only when a vehicle is purchased.
The Gwinnett Tax Commissioner's office offers some additional points to help clarify the new tax law.
- If you purchase a vehicle on or after March 1, 2013 you will pay the new title tax to the tag agent in the county where you register your vehicle. You pay the tax when you apply for the title and register the vehicle.
- The new title tax is not due every year but each time the vehicle is sold and titled. This applies to dealer sales as well as sales between individuals.
- You will continue to pay the annual ad valorem tax on any vehicle(s) you currently own.
- If you purchase a vehicle between Jan. 1, 2012 and March 1, 2013 (when the new program begins), you have the option of paying the new title tax instead of the current annual ad valorem tax. You have from March 1, 2013 until Dec. 31, 2013 to opt into the new program.
- All other existing annual registration requirements, including annual tax renewal fees, decals, and emmission tests (if applicable). remain in effect for all vehicle owners. (Source: Tax & Tag News)
Got questions? Visit the Gwinnett Tax Commissioner's website, or contact the Department of Motor Vehicles at tag@gwinnettcounty.com or 770-822-8818.
Read also:
Q&A On Georgia's New Car Title Tax
Appeals Likely to Increase With State's New Car Title Tax
Allan Peel
1:21 pm on Wednesday, June 6, 2012
I was under the impression that the tax rates of 6.5/6.75% was inclusive of the sales tax we pay now on new/used cars purchased at a dealer. However, this suggests that this in addition to the 7% (or so) sales taxes, for a total of more than 15% tax at time of purchase. Is this true? If so, this is going to kill new car sales. Not a good way to stimulate the economy IMHO.
Allan
Bob Martell
6:09 pm on Wednesday, June 6, 2012
Allan, the tax commisioners website suggests the new title tax is in lieu of the sales and ad valorem taxes...but it will apply anytime the car is titled, so you will pay it when you buy a new car from a dealer, and you will pay it if you buy a used car from your neighbor (or a dealer)...
Tom H
8:41 pm on Wednesday, June 6, 2012
Allan, The question is what will be the value of the car for tax purposes. The value on your tag application or the difference between your trade-in and car price? We will find out more next year when it takes affect. This new tax may not be good for us, they are taking our money up front, think about it. The General Assembly passed it quickly. I had to get a new tag this June and they look cheap. Now they have extra money for the roads.
Allan Peel
9:55 am on Thursday, June 7, 2012
Thanks for the replies. If this is in fact in lieu of the sales tax that we pay today (to dealers, but not private sales), then this is not too bad. The smalll 0.5% (in 2013) or 0.75% (in 2014) incremental tax (assuming 6% is the sales tax rate today) would be no more than a single, annual ad valorem tax that we pay today (probably less). While it is true that this would be paid each time the car is sold, even privately, used cars do not change hands very often,, so I think that this could end up being 'a wash' in terms of total sales + ad-valorem tax revenues that the citizens pay today, and for people who do not change cars often, this could be a net tax savings.. Also, the fact that this applies to private sales is at least fair to the dealers who have to charge the sales tax today, even on used cars.
Interesting point raised on the value to be used in assessing the tax when there is a trade-in involved. Technically, a trade-in is a separate sale as well, so is it possible, that instead of the difference between the new car price and the trade-in value, they will charge this new sales/ad-valorem tax on both amounts (i.e. the trade in value PLUS the new car value)? This is what you would pay if you sold the old car privately, then bought a new car from the dealer. I suspect they could do the same when trading in a car to a dealer, otherwise they would be creating an advantage for the dealers over private sales!! What a complicated web we weave ;-)
Ahna Still
12:42 pm on Thursday, December 6, 2012
So those of us that have a great car not purchased in the new time frame are stuck with the old taxes. Not fair! We should ALL get the same break!
James McFaden
6:02 pm on Thursday, January 10, 2013
The change to the law is actually a little misleading. First, if you buy a vehicle outside of the state of Georgia you can not be grandfathered in to the law. So your stuck paying the ad valorem tax as long as own the vehicle. I know first hand because I purchased a car in South Carolina in November of last year and paid my taxes today in Dekalb. I was little shocked. I called the Tax commissioner office to get more information and was told the 6.5% is the start and it will actually move up the 9% over the next few years. The truth is the tax change was lobbied for Georgia's car dealers and passed to benefit them. You have to love government.
jc ross
3:47 pm on Saturday, January 12, 2013
I am a little confused. So if I buy the car out of state, will I pay both taxes for each state or will they send the tax to GA or just pay the difference in tax rates like now.
Donald Webster
6:54 pm on Tuesday, January 15, 2013
People! You have been ripped off by the car dealers in Georgia. This new law sucks!
Donald Webster
7:04 pm on Tuesday, January 15, 2013
This was no boon to consumers. As usual the GA legislature puts the interests of business before private citizens. Do you pay tax if you sell your used refrigerator, you used boat, your used washing machine? This plays right into the hands of the folks that want to sell you a new car, because the buyers of new cars that keep them 10 years are the only benefactors of this new rip off law!
Donald Webster
7:05 pm on Tuesday, January 15, 2013
Oh sorry, and the dealers themselves. Uh, and the politicians who designed this law.
Becki Jo
11:09 pm on Wednesday, January 23, 2013
Donald, commenting about selling your washing machine, etc.. you don't pay if you sell it,,,you pay if you buy it...So if you sell your car,,,the buyer will be the one paying the tax,,, not you.
Becki Jo
11:12 pm on Wednesday, January 23, 2013
This new law is to designed for the buyer to actually pay less,,,Google it and see. There are several examples there to show you.
Scotty Q
2:23 pm on Monday, February 4, 2013
Perhaps this is true - but I followed the link the GA Dept of Revenue provided in the written notice to me and it took me to a web site where I had to plug in all sorts of details to see if I qualified for a refund. I clicked calculate and it reset the page! SO I did it again and it still did not work. My gut feeling is that the state is NOT giving anyone a break here. In the end we'll all end up paying more.
Scotty Q
2:17 pm on Monday, February 4, 2013
In Georgia you will pay 6.5% tax on the value of your car, the same car, year after year. Time to move to Florida where the homes are selling cheaply, the weather is better, there is no state income tax, and you register your car for between $35 and $100 every year.
Hubert Welborn
1:53 pm on Friday, February 15, 2013
Hubert
Why don't the local tax offices know anything about opting in on this deal. I asked my local office (Houston County) and they claimed they knew nothing about this and we would have to wait until March 1st to find out. I bought a new car in February 2012 and then traded it in on a newer car (2013) in January 2013. I paid sales tax on both cars. Do I get in on the new ad valorem deal for nothing since I paid all that amount on sales tax plus ad valorem tax on the 2012 in April 2012? This is so confusing, it is disgusting. If anyone actually knows the answer, please email me at: hwellborn@bellsouth.net. Thanks a lot.
Tamika
12:29 am on Friday, March 1, 2013
Therefore alot of people will not be buying cars. Who they think makes that much freaking money. If you only have say $1000 to put down on a car now with this new stupid law, you have to have $1650 on a car that cost $10,000...what the fudge..I guess after my car, I will be on a bike......