What is House Bill 386?
House Bill 386 is an initiative, passed in 2012 by the Georgia Legislature, introduced to spur economic growth in Georgia.
The new Title Ad Valorem Tax (TAVT) is one part of this initiative. The Title Ad Valorem Tax became effective March 1st, 2013.
The new Title Ad Valorem Tax will affect motor vehicles purchased on or after March 1st, 2013.
A motor vehicle is defined as every vehicle which is self-propelled. This will not include campers, trailers, mobile homes, electric assistive mobility devices, etc.

What Happened March 1st?
On March 1st, 2013, titled motor vehicles purchased on or after March 1st, 2013 become:

  • Exempt from sales and use tax
  • Exempt from annual ad valorem tax
  • Will be subject to an $18 title fee & the $20 annual registration fee
  • Will be subject to a title ad valorem tax (TAVT)*

Title work must be presented in the county of owner’s residence.
Payment of TAVT and Title application fee must be paid at the time of applying for the title.
All changes in ownership will require the TAVT.
*Excluding immediate family transfers and certain inheritances.
* Excluding commercial vehicles registered under IRP.
*Excluding Veteran Purple Heart Recipients, 100% Service Connected Disabled Veterans, Veterans receiving a grant to purchase a van with special equipment, and former POW’s.
*Once TAVT is paid on a vehicle, you are not subject to annual ad valorem (Birthday Tax) at the time of renewal.

 

VEHICLE TAG RENEWALS
Vehicles registered to Georgia owners prior to March 1st, 2013, will remain in the “old” ad valorem system until an ownership change that triggers a TAVT payment is complete.
Vehicles owned by a business expire on the last day of the month so determined alphabetically by the business name. Example: ABC Business expires on January 31st.
Tags expire on the birthday of the first owner shown. You should receive a bill 30 days prior to renewal. Penalties apply after the birthday deadline. Failure to receive a bill in the mail does not relieve the penalty. If you do not receive a bill, call the Tag Office with your tag number and one will be mailed to you. This must be done in time to insure registration by your birthday.
The penalty for late registration is 10% of the tax ($5.00 minimum) and 25% of the tag fee. These penalties begin immediately following the due date.
The vehicle must be covered by liability insurance at all times or a lapse in coverage penalty will apply. If you cancel the insurance, you must also cancel the registration. It is the vehicle owner's responsibility to insure their vehicle is properly registered.

Renew over the internet at https://mvd.dor.ga.gov/tags/index.aspx. 

 

NEW PURCHASES
Newly purchased vehicles from a car dealership must be titled within 30 days of purchase. The dealership should submit the necessary paperwork and fees to process the title application including TAVT.
A temporary tag may be issued by the selling dealership or in some cases by the tag office.
Georgia liability insurance is required to be transmitted to the state’s database by your insurance company to obtain a license plate for your vehicle.
Vehicles purchased from another individual or a non-dealership business must be titled within 30 days. A temporary tag in some cases may be issued by the tag office.
TAVT is due at the time of the title application.
If you sell or trade-in a vehicle, you keep your tag. Tags can be transferred to new vehicle which are registered to the same first owner. Proof of title (bill of sale for 1985 and older) is required to purchase a tag or transfer a tag from a vehicle you no longer own.
For further information regarding vehicle registration please visit the State of Georgia Motor Vehicle Division website at http://motor.etax.dor.ga.gov/.
 

NEW RESIDENTS
New residents must register their vehicles within thirty days of establishing residency in Georgia. A Georgia Driver's License must be obtained before registering your vehicle.
Out-of-state titles must be surrendered and transferred to Georgia titles (year models 1985 and older are not required to be titled in Georgia). If there is a lien on the vehicle and you do not have the title, we must have the current registration, name and address of the lien holder along with the account number. Additionally, leased vehicles require a power of attorney from the leasing company.
Georgia liability insurance is required to be transmitted to the state's data base by your insurance company in order to register your vehicle. The vehicle must be covered by liability insurance at all times or a lapse in coverage penalty will apply. If you cancel the insurance, you must also cancel the registration.
New residents to Georgia will be subject to TAVT when they apply for their new title.
They are required to pay:

  • $18 title fee
  • $20 tag fee
  • 50% of the TAVT at time of initial registration
  • 50% of the TAVT to be paid within 12 months

The Georgia title will not be issued until 100% of the TAVT has been paid.

 

OPT IN ELECTION
If you purchased your vehicle between January 1st, 2012 and February 28th, 2013, you have the option to Opt In.
If you choose to Opt In, you will pay the Title Ad Valorem tax, receiving a credit for Georgia Sales Tax & Ad Valorem tax already paid. Once the TAVT has been paid, you will only be responsible for the annual $20 registration fee.
If you choose not to Opt In, you will continue to pay Ad Valorem tax each year you own your vehicle at the time of renewal.
If you choose to Opt In, you will not pay Ad Valorem tax each year you own your vehicle at the time of renewal.
If you choose to Opt In, you must do so by February 28th, 2014.