MVD-2025-01 - Penalties Doubling for Avoiding TAVT by Using Plates from Other States

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Policy Bulletin: MVD-2025-01

Effective Date: January 1, 2026

Effective January 1, 2026, HB 551 doubles the title ad valorem tax (“TAVT”) penalty for any Georgia resident who owns at least 50 percent of a passive entity, as that term is defined in statute, for failure to timely register a motor vehicle owned by the passive entity.

What is a passive entity?

“Passive entity” means a legal entity, including but not limited to limited liability companies, corporations, and limited partnerships, that is

  1. formed under the laws of another state,
  2. does not have an established place of business in Georgia,
  3. owns no real property, and
  4. conducts no trade or business other than the holding of assets for investment and income.

What are the current TAVT late payment penalties?

Under current law, there is a 10 percent penalty assessed on the unpaid TAVT for any vehicle owner who is more than 30 days late in registering his/her vehicle after it was bought in Georgia or brought to Georgia. If a vehicle owner is more than 60 days late in registering the vehicle, then interest at the rate of 1 percent per month applies to the TAVT due. 

What is the impact of HB 551 on TAVT late payment penalties?

HB 551 amends O.C.G.A. § 48-5C-1 by adding provisions which double the amount of the TAVT late payment penalty due beginning on January 1, 2026, where a Georgia resident who owns at least 50 percent of a passive entity fails to timely register the motor vehicle owned by the passive entity within 60 days of the date such vehicle is required to be registered in Georgia. 

Under what circumstances does the double penalty apply?

The double penalty applies when: 

  • A Georgia resident titles a vehicle in the name of a legal entity formed in another state;
  • The legal entity qualifies as a “passive entity”; and 
  • The vehicle is driven or stored in Georgia for more than 60 days. 

Who does the penalty apply to?

In circumstances where the double penalty applies, the penalty is assessed on the Georgia resident who owns at least 50 percent of the passive entity that, in turn, owns the motor vehicle that was not timely registered in Georgia. 

Does the double penalty apply to registrations submitted prior to January 1, 2026?

No. Georgia residents who own at least 50 percent of a passive entity will not be subject to the double TAVT penalty if titling a passive entity owned vehicle in Georgia before January 1, 2026. Depending on how long you have owned the vehicle, penalties may apply for late payment of the title ad valorem tax (TAVT), but the provisions doubling the TAVT penalty will not apply until January 1, 2026. 

If you have questions about HB 551’s impact on the TAVT penalty, contact the Department at [email protected].