According to the Georgia Department of Revenue, dealerships
must compare the value listed in the Georgia Motor Vehicle Assessment Manual
for Title Ad Valorem Tax with the retail selling price less trade-ins and
rebates. The greater value is deemed the fair market value and is the taxable
amount. Even though you may get a great
price from a dealer, it’s still the fair market value that determines the tax
you’ll pay to the state of Georgia.
When you finance your vehicle purchase from a dealer, the
tax can be included in the financed amount much like sales tax was. However, the TAVT also applies to the sale of
used cars. For example, if you buy a
car from a friend, the one-time fee will be charged at the county tag
office. The title to the car won’t be
transferred unless the fee is paid. Keep
in mind that the fee is not based on the sales price of the car; it’s based on
the fair market value, which is found in the 2013 assessment manual. To determine
the fair market value of a vehicle, click on this link: TAVT
Assessment Manual
Also, if you purchased and titled a vehicle between January
2012 and March 2013, you may be eligible to opt-in to the TAVT. To determine
whether you can opt-in, click on this link: TAVT Calculator. You may have also received a letter from the
Georgia Department of Revenue informing you that your vehicle is eligible to
opt-in to the TAVT.
Eric Tydings
