Title Tax Effective March 1st 2013

J.W. (Bill) Watson, III Paulding County
Tax Commissioner

New Legislation from the 2012 Georgia General Assembly

Effective March 1, 2013, House Bill 386 removes the sales tax and annual ad valorem tax on newly purchased vehicles. It replaces these taxes with a new Title Tax of 6.5% in 2013, 6.75% in 2014, and 7.0%in 2015.

Here’s what you need to know:

  • If you purchased a vehicle on or after March 1, 2013, you will pay the new title tax to the tag agent in the county in which you register your vehicle. You pay when you apply for the title and register the vehicle.
  • The new title tax is not due every year but is due each time the vehicle is sold and titled. It applies to dealer sales as well as sales between individuals.
  • The new title tax is based on a percentage (6.5% in 2013) of the fair market value of the vehicle as determined by the Georgia Department of Revenue.
  • You will continue to pay the annual ad valorem tax on vehicle(s) that you currently own.
  • If you purchase a vehicle in Georgia between January 1, 2012 and March 1, 2013 (when the new program begins), you have the option of paying the new title tax instead of the current annual ad valorem tax. You have from March 1, 2013 until December 31, 2013, to opt into the new program. Note: Vehicles purchased out of state are not eligible to opt in.
  • All other existing annual vehicle registration requirements, including annual tag renewal fees, decals, and emissions test (if applicable); remain in effect for all vehicle owners.

Tag Office: 770-443-7584