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)