Avoid surprises when shopping for a car this spring – and ad valorem tax confusion » Homepage

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Chad Alexander

March 19, 2013

Avoid surprises when shopping for a car this spring – and ad valorem tax confusion

Angye Morrison/Editor CNHI The Tifton Gazette Tue Mar 19, 2013, 09:00 PM EDT

TIFTON — Last year, the Georgia General Assembly enacted legislation that did away with the annual vehicle ad valorem tax, commonly referred to as the “birthday tax.” The new system is a state and local title ad valorem tax, which became effective March 1.

As a result of the new legislation, some folks are just plain confused.

According to the Association of County Commissioners of Georgia, since the March 1 enactment date has passed, state and local sales tax will no longer be charged on the purchase of a vehicle. Annual ad valorem tax will also be eliminated on vehicles that have transferred ownership, except in the case of a transfer to an immediate family member where a title tax is not paid. The sales tax and annual ad valorem tax will be replaced with a one-time state and local title ad valorem tax paid every time the ownership of a vehicle is transferred, except in the case of a transfer to an immediate family member. The new title tax will be collected by county tax commissioners and dispersed to the state, counties, school districts and cities based upon the formulas prescribed by law.

The new system for taxing vehicles only applies when the ownership of the vehicle is transferred through a title exchange. All other vehicle owners will continue to operate under the current system, and pay the annual ad valorem taxes until they no longer hold title on the vehicle.

This means if you are shopping for a new car this spring, you should expect that the cost to title that vehicle is going to be higher than what you may have paid in the past. You won’t, however, be expected to pay a sales tax if you purchase the vehicle through a dealership, and you won’t have to pay the annual ad valorem tax each year.

If you purchased and titled a vehicle in Georgia between January 1 and March 1 of this year, you may be eligible for the new title ad valorem tax. Check with the Tift County Tax Office to be sure.

The new system calculates the ad valorem tax at 6.5 percent of the vehicle’s value, not the sales price. If there is no source to assess the value of the vehicle, a used car market guide can be used.

Tift County Tax Commissioner Chad Alexander admits the new system can be a bit confusing, and has offered his services to help clear things up a bit.

“I am available to talk with people about the new tax, and answer their questions, and I would be glad to speak to groups about it,” he said. He invites residents to stop by the Tax Office, or if you are part of a local civic or church group, or other organization, you can contact Alexander at 229-386-7820.

The Georgia Department of Revenue has set up a title ad valorem tax calculator to help you determing the amount of taxes you will pay in the new system. You can access the calculator at http://onlinemvd.dor.ga.gov/Tap/welcome.aspx.

You should check with Tift County’s tag office for details on emissions testing, mandatory insurane and driver’s license requirements necessary to renew your tag by your expiration date.

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Avoid surprises when shopping for a car this spring – and ad valorem tax confusion

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