Change to Georgia Title Ad Valorem Tax (TAVT) Rate: Now 7%!
Effective from July 1, 2023, the TAVT rate will revert to 7% of the motor vehicle’s fair market value. This updated rate applies exclusively to motor vehicles purchased or leased on or after July 1, 2023, and subsequently titled in Georgia.
What’s the Formula Change?
As of July 1, 2023, the only amendment to the formula is the adjustment in the TAVT rate to 7%. Introduced on March 1, 2013, TAVT generally applies to motor vehicles titled in Georgia on or after that date. Vehicles under TAVT are exempt from sales and use tax during the sales transaction and are not subject to the annual ad valorem tax, often referred to as the “birthday tax,” as long as they remain with the same owner.
Impact on Dealers and Leasing Companies
Starting July 1, 2023, dealers and leasing companies collecting TAVT for vehicles purchased or leased will need to calculate and collect the correct TAVT amount using the new rate. They must also report the TAVT calculation details to the Department along with the title application.
Check out the policy bulletin for more information.