Georgia – Motor Vehicle Birthday Tax Eliminated


SALT Report 2177 – The Georgia Department of Revenue issued a reminder regarding a new law that will change the way motor vehicles are taxed in Georgia.  Effective March 1, 2013 all motor vehicles purchased on or after that date and titled in Georgia will be exempt from sales and use tax as well as the annual ad valorem property tax, also known as the “birthday tax.”

Instead, these taxes will be replaced by a one-time tax called the title ad valorem tax (TAVT) which will be imposed at the time the vehicle is titled.  For the first year, the rate of the TAVT will be 6.5% of the fair market value as determined by the Georgia Motor Vehicle Assessment Manual.

Owners of vehicles purchased between January 1, 2012, and February 28, 2013, can opt-in to the new TAVT system or they can stay in the annual ad valorem system.  Owners who choose to opt-in to the TAVT system should go to their local tag county office between March 1, 2013, and December 31, 2013 to do so.  The Department has created a TAVT calculator to help vehicle owners decide which option is best for them.  However, vehicles owned prior to January 1, 2012, will not be given the TAVT option and will remain subject to the old taxing system.

The new TAVT applies to dealer and casual sales but excludes non-titled vehicles such as trailers and other non-motorized vehicles which will remain subject to the ad valorem tax.

For Further Information

Georgia Department of Revenue – Release