TITLE AD VALOREM TAX (TAVT)
EFFECTIVE DATES
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The Title Ad Valorem Tax (TAVT) law is in effect as of March 1, 2013.
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HB 266, which made changes to HB 386, the original TAVT law Copy of HB 266, went into effect March 6, 2013.

HB 266 is NOT retroactive to March 1.

Transactions taking place prior to March 6 were subject to HB 386.

Transactions taking place on March 6 and forward are subject to HB 266. NOTE: DOR’s GRATIS System was not
programmed to calculate FMV on new vehicles under HB 266 initially. DOR has provided counties with a work
around to manually calculate the TAVT but some counties may not be doing so.

DOR has advised that due to changes in the GRATIS system necessary to implement HB 266, for those transactions
that took place between March 1 and March 6, penalties will not be assessed for failure to submit title applications
and TAVT within 10 days.
To assist dealers with compliance, below is a summary of the updated TAVT requirements.
For help and further information on TAVT and HB 266 changes to TAVT, go to www.gada.com and click on MORE
INFORMATION. There you will find the following helpful links/documents:
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DOR VIN Lookup link – NOTE: this link is to be used to determine DOR value only. It should not be used to calculate
TAVT. Simply enter the VIN and click “No” you are not the registered owner. If a DOR value exists, it will appear in
a value field.
DOR Informational Bulletins concerning HB 266 and definition of FMV for new and used vehicles
DOR Informational Bulletin regarding TAVT Opt-In
DOR Dealer Tax Guide – NOTE the DOR Tax Guide has not been updated to reflect changes from HB 266, including
the definition of FMV for new vehicles. However, the Guide remains a resource to answer a number of other
questions regarding TAVT, such as sales to military.
FAIR MARKET VALUE (FMV)
o NEW Vehicles- The greater of “retail selling price” or in the case of a lease “agreed upon value” or DOR
Value, less rebate and trade-in.
o “Retail selling price” or “agreed upon value” includes add-ons, dealer fees and similar charges (i.e., lease
acquisition fees). See example next page.
o For additional detail regarding definition of FMV and what is included in “retail selling price” or “agreed
upon value”, see DOR Informational Bulletin – FMV on New Vehicles-HB 266 (link on www.gada.com).
o
o
USED Vehicles- DOR Value less trade-in
Used if Not in DOR Valuation Manual- Higher of bill of sale or “clean retail” value from NADA Guide less
trade in.
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o
When submitting title work to a county tag agent, dealers should submit a copy of the buyers
order/purchase or lease contract, copy of source of FMV if DOR or NADA is used, and if available, copy of
calculation of TAVT.
o
Questions about submitting ETR work should be directed to ETR provider.
o
As of March 6, TSPLOST is removed from motor vehicle sales that are subject to TAVT. Sales that are not
subject to TAVT but are subject to sales tax will continue to be subject to TSPLOST if the vehicle will be
registered in a TSPLOST county. For example, non-resident active military sales are not subject to TAVT but
are subject to sales tax. If a vehicle sold to non-resident active military subject to sales tax will be
registered in a TSPLOST county, then TSPLOST should be collected.
o
TAVT applies to FMV leased vehicles; however, sales and use taxes are exempt. Therefore, there is no sales
and use tax on monthly lease payments.
FMV for purposes of a lease is agreed upon value + add ons + fees (including lease acquisition fees).
TSPLOST
LEASES
o
TITLE PROCESS
Dealers are required to submit title applications (MV-1) and TAVT to the county where the vehicle will be registered
within 30 days from the date of purchase. Unless an extension of the registration period is granted by the county
tag agent under Title 40, penalties for failure to submit within 30 days are:
o
o
o
o
o
After 30 days – 5% of TAVT
After 60 days – additional 10% of TAVT (15%)
After 90 days – additional 15% of TAVT (20%)
After 120 days- additional 20% of TAVT (25%)
Every 30 days thereafter- additional 25%
OTHER COMMON ISSUES
 TAVT applies to vehicles that will be titled in Georgia. If a vehicle will NOT be titled in Georgia (i.e., an out-ofstate-customer), TAVT does NOT apply. In that case, normal sales tax rules apply. Accordingly, a customer that
qualifies for an out-of-state resident sales tax exemption will continue to be eligible for this exemption,
provided an ST-8 form is completed. A customer that does NOT qualify for an out of state resident exemption,
such as a resident of a foreign country that takes delivery in Georgia, will continue to pay Georgia sales tax.

Title application and tag fees still apply.
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Exceptions to TAVT: corrected titles, replacement titles, titles reissued to same owner, abandoned vehicles,
foreclosure of mechanic’s liens, transfers for purposes of resale.

Dealers should NOT collect TAVT from non-resident active military stationed in Georgia. Non-resident active
military stationed in Georgia should continue to pay Georgia sales tax as they do currently. GA DOR Form PT471 is required to substantiate military exemption from TAVT.
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
Dealers SHOULD collect TAVT from RESIDENT military.

Certain veterans may qualify for TAVT exemption. If eligible for TAVT exemption, neither sales tax nor TAVT
should be collected. TAVT exemption must be verified and GA DOR Form MV-30 must be completed to
substantiate this exemption.

Vehicles registered under the International Registration Plan (IRP) are exempt from TAVT. Those vehicles that
are registered under IRP but are not exempt from sales tax as common carriers, will continue to pay sales tax.

Loaners are vehicles provided to service customers at no charge to the customer. Loaners titled and placed in
loaner service after March 6, 2013 are exempt from TAVT for a period of 366 days. Use tax should continue to
be paid during the period of TAVT exemption.
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Unless a dealership qualifies and is certified as a “rental motor vehicle concern”, TAVT is owed on vehicles
placed in rental service. For a detailed discussion on “rental motor vehicle concern”, see DOR Tax Guide (link on
www.gada.com).
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EXAMPLES OF TAVT CALCULATION
NEW VEHICLES (March 6 and after)
STEP 1. Compare the retail selling price or agreed upon value if a lease (including add-ons, dealer fees) vs. the DOR FMV.
$25,000 selling price (agreed upon value)
+$500 floor mats
+$250 dealer fee
TOTAL RETAIL SELLING PRICE $25,750
VS.
DOR VALUE
$22,000
RETAIL SELLING PRICE IS HIGHER SO TAVT IS CALCULATED BASED ON RETAIL SELLING PRICE
STEP 2. Calculate TAVT
RSP/AUV
Deduct trade
Deduct rebate
$25,750
-$5,000
- $750
TAVT =20,000 * 6.5%
USED VEHICLES
STEP 1. Determine FMV
Check DOR Assessment Manual for Value
DOR VALUE
$15,000
Go to STEP 2
If NO DOR value, determine higher of value from bill of sale or NADA Guide “Clean Retail”
Bill of Sale value includes accessories
SELLING PRICE
Bed Liner
VALUE FROM BILL OF SALE
VS.
NADA CLEAN RETAIL
$17,000
$2000
$19,000
$18,000
VALUE FROM BILL OF SALE HIGHER, FMV $19,000
GO TO STEP 2
STEP 2. Calculate TAVT
If DOR Value
Less Trade
IF NO DOR VALUE
Less Trade
$15,000
$5,000
TAVT=$10,000 * 6.5%
$19,000
$5,000
TAVT = $14,000 * 6.5%
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