Tax reform legislation enacted by the Georgia General Assembly in 2012 created a new system for taxing motor vehicles registered in Georgia. As a result, the annual vehicle ad valorem tax, often called the “birthday tax,” will change to a state and local title ad valorem tax on March 1. The Association County Commissioners of Georgia (ACCG) encourages individuals who plan to purchase or transfer the title on a vehicle to learn more about these changes before visiting their local county tag and title office. Beginning March 1, state and local sales tax will no longer apply to the purchase of a motor vehicle (except for the one percent transportation tax on the first $5,000 of any vehicle sale in regions that have this tax). All vehicles purchased or transferred into ownership after this date also will no longer be subject to the annual ad valorem tax. Instead, these vehicles will be subject to a new, one-time state and local title ad valorem tax (TAVT) that is paid at the time owner registers the vehicle and applies for the title with the county.
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