Motor Vehicle Tax Changes Coming to Georgia March 1, 2013

During the last legislative session, the Georgia General Assembly passed House Bill 386 which eliminates the annual ad valorem tax on motor vehicles. Beginning March 1, 2013, when you title a car in Georgia, you will pay a one time title fee instead of the annual ad valorem tax and also avoid the sales tax due at the time of your vehicle’s purchase.

This new law will apply to new and used vehicle purchases as well as casual sales which are sales between two private individuals (not by a licensed dealer). The one-time title fee rate will begin at 6.5 and rise to 7 percent in 2015. Even at 7 percent, this fee is less than or equal to the current sales tax in most counties. Cars that are purchased prior to March 1, 2013, will have the option in 2013 to opt-in to this new program by paying the title fee by December 31, 2013 or continue paying the annual ad valorem fee.