What is TAVT?
TAVT stands for Title Ad Valorem TAX. Motor vehicles purchased on or after March 1, 2013 and titled in the state of Georgia are exempt from sales and use tax and annual ad valorem tax, also known as the "birthday tax." These taxes were replaced by a one-time tax that was imposed on the fair market value of the vehicle called the title ad valorem tax fee ("TAVT").
How Are Georgia’s Auto Lease Laws Changing?
Since March 1, 2013, Georgia had a new Title Ad Valorem Tax (TAVT) that applied to all new and used car purchases/leases. The tax was paid up-front (or rolled into financing) at the rate of 7.0% of the fair market value of the vehicle, as determined by the Georgia Department of Revenue — or the vehicle selling price, whichever is greater.
Effective January 1, 2018, TAVT on leased vehicles will be calculated based on the total of lease payments, rather than the full value of the vehicle.
What does this enhancement mean for you?