The good news is the "birthday tax" we've all been paying when we renew our car tags has been eliminated - well, sort of. It only affects vehicles purchased after March 1, 2013.
During this year's legislative session, the Georgia General Assembly passed a tax reform bill that removes the sales tax and ad valorem tax on newly-purchased vehicles.
However, there are new taxes to pay - after March 1, 2013 a new title ad valorem tax fee of 6.5 percent in 2013 and 6.75 percent in 2014 will be added (for vehicles purchased after the first day of March next year).
The new law affects both brand new vehicles and previously-owned vehicles because the tax isn't paid annually only when a vehicle is purchased.
The Cobb County Tax Commissioner's office offers some additional points to help clarify the new law:
- If you purchase a vehicle after January 1, 2012, but before March 1, 2013, you may have the option of paying annual ad valorem tax or a one-time title ad valorem tax fee.
- Starting March 1, 2013, the new one-time title ad valorem tax fee applies to all title transactions (new and used vehicle purchases, transfers, all transfers among family members, or vehicles new to the state) and eliminates payment of sales tax and annual ad valorem tax.
- Whether paying the one-time title ad valorem tax fee OR annual ad valorem tax, requirements for insurance, emission, driver’s license and the renewal of your tag by your expiration date remain the same.
- If you purchased a vehicle before 2012, you will remain on the current annual ad valorem tax system.
For more information, visit www.cobbtax.org or call 770-528-TAGS.
What do you think of the new changes? Is it better or worse than what was already in place? Let us know in the comments below.