Cars Won't Cost More
Historically, the most sales tax many of us will ever pay is on the purchase of a new or used car. That's not the case anymore. Although Dade County does not have a new car dealership, hundreds of used vehicles are sold each year and TSPLOST will not have any impact on purchases of used vehicles or automobiles.
Georgia General Assembly
The Georgia General Assembly eliminated sales tax and annual county taxes (birthday tax) on all vehicle sales in 2012 and replaced them with the Title Ad Valorem Tax (TAVT). Purchasers of used vehicles pay a one-time fee imposed on the fair market value of the vehicle at the time of sale. The rate of tax, currently at 7%, is set by the Commissioner of the Georgia Department of Revenue.
You are still required to annually register your vehicle in your home county and pay the associated $20 renewal fee. The existing $18 title application fee still applies when the vehicle is titled. You must continue to maintain liability insurance as required by Georgia law. Vehicles acquired by disabled veterans who would otherwise receive an exemption from ad valorem tax will also be exempt from the TAVT.
Title Ad Valorem Tax
The TAVT rate on vehicles is the same throughout Georgia. In other words, if you purchase a vehicle in Rome, Dalton or Calhoun, you will pay the same TAVT rate you would pay here in Dade County.
Fair Market Value
Fair Market Value is the value listed in the Department of Revenue assessment manual database minus trade-in for dealer sales. If a vehicle is not listed in the assessment database, the greater of the value from the bill of sale or the "clean retail" value from the NADA guide (minus trade-in value for dealer sales) is used to establish fair market value. The Motor Vehicle Title Ad Valorem Assessment Manual is prepared annually by the Georgia Department of Revenue.
Non Titled Vehicles
Non-titled vehicles and vehicles that do not meet the statutory definition of a motor vehicle pay the annual ad valorem tax. For example, the following do not qualify as titled vehicles:
- Any vehicle for which a title cannot be issued, such as vehicles manufactured prior to 1963 and 1963 to 1985 year model vehicles that do not have a current Georgia title.
- Pull-behind campers
Salvage vehicles are subject to a TAVT rate of 1% of the fair market value of the motor vehicle.