Title ad valorem tax fee informational bulletin [Mar. 6, 2013]

Georgia Department of Revenue - Motor Vehicle Division Title Ad Valorem Tax Fee Informational Bulletin
Annual Ad Valorem Exemption and Opt-In
Effective March 6, 2013
Motor vehicles purchased on or after March 1, 2013 and titled in Georgia are exempt from Georgia sales and use tax and annual ad valorem tax, also known as "the birthday tax." These motor vehicles are instead subject to a one-time State and Local Title Ad Valorem Tax Fee ("TAVT"), as provided by O.C.G.A. 48-5C-1. Vehicles leased for longer than 31 days which have been subject to TAVT will also be exempt from monthly sales and use tax and annual ad valorem tax.
Those who purchased a motor vehicle on or after January 1, 2012 but prior to March 1, 2013 may be eligible to "opt-in" to the new TAVT system. If such opt-in election is made, the owner of the vehicle will thereafter be exempt from annual ad valorem taxes.
OPT-IN ELIGIBILITY
The motor vehicle must have been purchased on or after January 1, 2012 but prior to March 1, 2013. Motor vehicles purchased prior to January 1, 2012 are not eligible. The law originally required the purchase to be made in Georgia; however, the law has been amended and a vehicle purchased outside of Georgia may be eligible to opt-in if the other opt-in requirements are met. A valid Georgia certificate of title must have been issued for the vehicle, whether held by the owner or in the possession of a lienholder. The earliest date that the opt-in for any vehicle can occur is March 1, 2013, and the opt-in must occur prior to March 1, 2014. Any outstanding tax liabilities for the vehicle must be satisfied prior to the vehicle being allowed to opt-in.
HOW TO OPT-IN
Visit the County Tag Office in the county where your vehicle is registered. Bring the following documentation:
o The bill of sale showing the amount of Georgia sales and use tax paid, or other documentation sufficient to prove payment of Georgia sales and use tax, if applicable. Sales tax paid to another state will not be considered.
Complete opt-in Form MV-14, which will be available at the County Tag Office. Determine Any Balance Due:
o The County Tag Agent will begin by determining how much TAVT would have been due if the vehicle had been purchased on or after March 1, 2013.
o This amount is then reduced by any Georgia sales and use tax and Georgia ad valorem tax previously paid on the vehicle.

o If the TAVT amount that would have been paid is more than the Georgia sales and use tax and Georgia ad valorem taxes previously paid on the vehicle, the balance must be paid at the time of the opt-in. If the TAVT amount is less than the Georgia sales and use tax and Georgia ad valorem taxes previously paid on the vehicle, then no additional amount is due and the owner will not receive a refund of the difference.
Pay the balance, if any, remaining after the credit for Georgia sales tax and Georgia ad valorem tax previously paid on the vehicle. The vehicle is now exempt from annual ad valorem tax.
FLEET OPT-IN
Persons and entities which own a fleet of vehicles may be eligible to opt in multiple vehicles at one time, if the requirements listed above are met for each individual vehicle. The owner may provide a single opt-in form along with a schedule of all qualifying vehicles to the county tag agent, and include in the schedule all of the required information on each vehicle. This may be done by word processor, spreadsheet, or other reasonable means.
Any required documentation must be included for each qualifying vehicle. Such additional documentation must be organized by VIN in the same sequence as listed in the printed schedule of vehicles.
LEASED VEHICLES
Leased vehicles are eligible for the opt-in either by the lessor or lessee so long as all other eligibility requirements are met. Any eligible Georgia sales and use tax and Georgia annual ad valorem tax previously paid will be considered for the purpose of offsetting TAVT.
For motor vehicles which have become subject to TAVT, lease payments are now exempt from monthly use tax.
RENTAL MOTOR VEHICLE CONCERNS
Rental motor vehicles may be eligible for the opt-in by the rental car company. Any eligible Georgia sales and use tax and Georgia annual ad valorem tax previously paid will be considered for the purpose of offsetting TAVT. If the rental car company has been certified as a Rental Motor Vehicle Concern, the lower rate will be used for calculating the opt-in.
Rental payments are not exempt from sales and use tax.
To determine whether the opt-in is right for you, please visit the Department of Revenue online calculator at www.newtitletax.com
FOR MORE INFORMATION
For more information on this subject, contact the Motor Vehicle Division at 1-855-406-5221, from 8:00 am to 4:30 pm EST, Monday through Friday, excluding holidays.
Persons with hearing or speech impairments may call our TDD number at 404-417-4302.
For forms and other information, visit our websites, (www.dor.ga.gov and www.newtitletax.com).