Georgia > Higher Title Ad Valorem Tax Starts 1/1/15

| December 30, 2014

Side-of-Car

ATLANTA — Consumers hoping to save a few dollars have until Dec. 31 to complete their new vehicle purchase before a higher tax rate goes into effect.

Beginning January 1, the title ad valorem tax (TAVT) will increase from 6.75 percent to 7 percent. The one-time tax, which is based on the fair market value of the vehicle, is imposed at the time the vehicle is titled.

The TAVT replaced the annual ad valorem tax, also known as the “birthday tax.” Motor vehicles purchased from March 1, 2013 — when the new tax law took effect — through Dec. 31, 2013, were subject to a TAVT of 6.5 percent. For 2014, the rate was 6.75 percent. State law specifies the TAVT will increase to 7 percent for vehicles purchased in 2015.

The rate, by law, may be adjusted upward in future years, but may not exceed 9 percent. Any rate increase for 2016 and beyond will be set by the commissioner of the Department of Revenue and will be published by Aug. 31.

The TAVT payment is submitted to the county in which the vehicle is registered and must be paid at the time application for title and registration are made. In the case of vehicles purchased through a dealership, the dealer must accept the title application and TAVT payment on the buyer’s behalf and submit both to the county tag agent.

A TAVT calculator is available on the Georgia Department of Revenue website at dor.georgia.gov/motor-vehicles.

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