Q&A on Georgia's New Car 'Title Tax'

Still have questions about the new car tax law going into effect March 1? Here is a list of answers to frequently asked questions and a link to help calculate how much you will pay for that new ride.

For anyone in Peachtree Corners contemplating buying a new or used car, you've probably still got some questions about the new "Title Tax" law that goes into effect March 1, 2013.

You'll find 22 answers to questions that range from "How much will the title tax be?" to "What is the fair value market and how is it determined?" on the Gwinnett County's Tax Commissioner's website.

Thanks to Sully who pointed out the link in the comment stream earler today on the Peachtree Corners Patch website.

Click here to see the Q&A on information on the new "Title Tax" that replaces the ad valorem tax that goes into effect on the first day of March for automobiles purchased on or after that date.

There is also a title tax calculator on the Georgia Department of Revenue's website. Click here to find out how much tax you can expect to pay if you purchase a new or used car after March 1.

Jim Nelems February 24, 2013 at 05:32 PM
No one seems to notice the many thousands of dollars a new Georgia resident has to pay when they move to Georgia. Assume you move here and have two cars valued at, say, $40,000. You must pay 6.5% of that, or about $2500 , of which 50% is immediately due. How many residents can immediately write a check or charge $2500 on their credit card. And it makes no difference if you have paid sales tax on these cars in your other state. And payments are not tax deductible as they were in the past
Judy Putnam (Editor) February 24, 2013 at 08:43 PM
Jim, you are right, that's a lot of money for a newcomer to fork over. I suspect most deciding to move to Georgia won't even know about the tax until they've settled in, and then it will be too late. I bet we start seeing a lot of out-of-state tags because people don't, or can't pay the hefty fee.
Jim Nelems February 24, 2013 at 09:10 PM
The equitable solution here is simply to require new residents from out Of state to continue to pay the annual advalorem or birthday tax because that is what all current Georgia residents who bought a car in Georgia before march 1, 2012 will have to continue to do. Since they will have already paid their vehicle sales tax in the state they moved to Georgia from, it is patently wrong to ask them to pay a similar amount (6.5% this year, more next year) again.
Tom Rice February 24, 2013 at 09:34 PM
What is forgotten in both comments is that there is no more ad valorem tax. Therefore, if those moving into Georgia keep their vehicles four years or so they will break even against what they would have paid in ad valorem or "birthday tax." The other provision to consider is that if they decide to buy another vehicle they will pay ONLY a title fee and NO sales tax or ad valorem. The title fee rate in all but two counties is less than they would pay in sales tax today.
Jim Nelems February 24, 2013 at 09:58 PM
A tax should not be determined on the unfounded assumption that a new resident Will stay here 4 years. Nor does a new resident buying a car in Georgia in the future have anything to do with paying a tax on a car one has already paid sales tax on in another state. in the example I used where the tax is $4500, ask 10 people if they want to pay $2250 up front and then another $2250 in a year, or pay a small amount annually BETTER STILL.ask someone making $30,000 a year if they can pay $1000 to $2000 at the tag office. if this such a good deal, why not give new residents a choice-- up front or an Halley.
Jim Nelems February 24, 2013 at 10:10 PM
Last word in my comment above should be annually, not an Halley. I hit the keys too fast, and let the iPad think for me.
Mrs D February 24, 2013 at 11:36 PM
I heard something about a lower percentage rate for purchase within immediate family. I purchased a car from my Dad within the time frame to opt in if I wish but haven't been able to find more info about opting in with the family rate. Does anyone have any more info?
Jim Nelems February 24, 2013 at 11:57 PM
If it is one of a few specific family members, and the fee has been paid, the fee is 1/2 of 1%. You do not have to prove the relationship, just sign an affidavit to that effect. Click on the link in the patch article for more information. Not all "relatives" qualify but a dad does
Mrs D February 25, 2013 at 12:06 AM
JMitchell May 14, 2013 at 01:20 PM
What Tom Rice is not considering are those who move to Georgia on government orders for 1 to 3 years and are not active duty. Such is the case with our family. My spouse is a 90% disabled vet who was transferred to Georgia on government orders for a 1 to 3 year assignment. We have two Jeeps bought in 2010 (base models) and one lease from 2012 (one young driver still living at home). We paid sales tax to the state of Washington. We were charged $5,200.00 to register our three vehicles. And if my husband gets new orders next year, which we probably will, we will leave the state of Georgia and have to register in the new state we move to. Therefore, our yearly tag fees were 1300.00 for each Jeep and 2,000.00 for the lease. Please hit me with the yearly birthday tax, that would have been so much better! There are many government employees that move around like we do that have to register as residents in each state we move to and this bill has hit us so hard. Most of us will only live in Georgia for a year so the ad valorem tax is pretty much a fee for 1 year.
JMitchell May 14, 2013 at 01:32 PM
Thank you Jim for your common sense replies. Not only did we get hit with these draconian fees, but the representative at the vehicle registration office said that any trade in values or down payments were not considered because we were new residents. We place a hefty downpayment and trade in for one of the Jeeps and none of that was taken into account so that is why the fee was $1,300.00 for each Jeep even though the financed amount is different. On a side note, I have to put groceries on a credit card today because I was forced to fork over $2,600.00 at the registration office and had to liquidate one checking account and overdraw the other. But, at least I was given a year to come up with the other $2,600.00 (insert sarcasm here).:)


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