Title Ad Valorem Tax (TAVT) - FAQ

A new motor vehicle is any motor vehicle, which is not a demonstrator vehicle and has never been the subject of a sale at retail to the general public.

For a new motor vehicle, the fair market value is the greater of the retail selling price (or in the case of a lease, the agreed upon value) or the value listed in the state motor vehicle assessment manual. The higher number that is used is reduced by the trade-in value, as well as reduced by any rebate or cash discounts provided by the selling dealer at the time of the sale. Retail selling price (or in the case of a lease, the agreed upon value) includes charges for delivery, freight, doc fees, and other such fees and is meant to mirror the taxable base that was formerly used for sales tax.

A used motor vehicle is any motor vehicle, which has been the subject of a sale at retail to the general public.

For a used motor vehicle, the fair market value is the value identified in the state motor vehicle assessment manual. This value is calculated by averaging the current wholesale and retail values of the motor vehicle pursuant to O.C.G.A. § 48-5-442. Accordingly, the fair market value for a used motor vehicle for purposes of TAVT will generally be the same as the value that was used in the old annual ad valorem tax system.

A reduction is made for the trade-in when the sale was made by a dealer, but not when the sale was made by a private individual.

If the vehicle is a used vehicle and not listed in the state motor vehicle assessment manual, the value listed in a used car market guide designated by the Commissioner of the Department of Revenue will apply.

A reduction is made for the trade-in when the sale was made by a dealer, but not when the sale was made by a private individual.

 

The TAVT is calculated by multiplying the fair market value by the rate in effect on the date of purchase. A reduction is made for the trade-in when the sale was made by a dealer, but not when the sale was made by a private individual.

As defined in O.C.G.A. § 48-5C-1, the “trade-in value” is the value of the motor vehicle as stated in the bill of sale for a vehicle which has been traded in to the dealer in a transaction involving the purchase of another vehicle from the dealer.

• The application for title and TAVT payment must be submitted to the county in which the buyer resides. The TAVT must be paid at the time of initial title application.
• If you purchase your vehicle at a dealership, the dealer must accept the application for title and TAVT payment on your behalf and deliver the title application and TAVT payment to the County Tag Office where the buyer resides.