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Car Tax Changes Everyone Must Know

The Georgia General Assembly passed a tax reform bill that will change how and when you pay your ad valorem tax on your vehicle.

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:

  1. 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. 
  2. 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.
  3. 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.
  4. 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.

Randall Meadows June 21, 2012 at 12:27 PM
why can't they offer the option for the vehicles purchased before 2012? I could live happily without getting my pocket picked on my birthday every year ... kind of takes the joy out of the whole day knowing you will have to put out $$ for a sticker the size of your thumb.
Church Member June 21, 2012 at 01:12 PM
Needs to be straight across the board...either everyone pays annual advalorem tax or a one time tax. Just like the emmission- every car in the state needs to do this not just in certain counties.
DS June 21, 2012 at 01:41 PM
I'll take my $23 Birthday tax over thousands to buy another car after March 1st!
Randall Meadows June 21, 2012 at 02:08 PM
I bought a 2012 - mine was well over 10X $23 when I renewed my sticker in April.
Cyndi Donahue June 21, 2012 at 02:54 PM
What a great way to encourage people to stimulate the local economy, drive greener and safer cars NOT! Seriously what moron came up with this plan? I see this changing soon once they realize their mistake.

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