Walton County Tax Commissioner Explains New Title Tax Procedures Effective Friday

Walton County Tax Commissioner Derry Boyd is reminding the community that changes to the way motor vehicles are taxed in Georgia become effective Friday, March 1.

In a press release, Boyd said that motor vehicles purchased on or after March 1, 2013 and titled in this state will be exempt from sales and use tax and the annual ad valorem tax, also known as the “birthday tax.” These taxes will be replaced by a one-time tax that is imposed at the time the vehicle is titled on the fair market value of the vehicle called the title ad valorem tax (“TAVT”). For 2013, TAVT rate will be 6.5 percent of the fair market value as appraised by the Georgia Motor Vehicle Assessment Manual. The TAVT is applicable to dealer and casual sales but excludes non-titled vehicles such as trailers and other non-motorized vehicles, which will remain subject to the annual ad valorem tax.

Boyd pointed out that people who purchased vehicles since Jan. 1, 2012 up until March 1 may be able to choose which system they want to use going forward. They may be eligible to opt-in to the new TAVT program or remain in the annual ad valorem tax system. Vehicles owned prior to January 1, 2012, however, will stay in the old system and owners will be subject to the annual ad valorem tax on their birthday. The Georgia Department of Revenue’s website www.newtitletax.com provides a TAVT calculator that will help owners decide which option is best for them.

Owners who choose to opt-in to the TAVT system will need to visit the tag office at any time between March 1, 2013 and December 31, 2013. Boyd warned that careful consideration and caution should be used when making the decision to opt-in or remain under the birthday tax program.

To view frequently asked questions concerning the new TAVT system or to use the TAVT calculator, visit the Georgia Department of Revenue website www.newtitletax.com