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January 31, 2013
BOARD OF COMMISSIONERS Regular Meetings February 5th at 9:00 a.m. February 19th at 6:30 p.m.
Meetings held at: Administration Building Community Room 140 Henry Parkway McDonough, GA 30253
Commission meetings will air daily on Henry TV Channel 14, at 9 a.m., 2 p.m., & 7 p.m.
Motor Vehicle “Birthday Tax” to Change to State and Local Title Tax Tax reform legislation enacted by the Georgia General Assembly in 2012 created a new system for taxing motor vehicles registered in Georgia. As a result, the annual vehicle ad valorem tax, often called the “birthday tax,” will change to a state and local title ad valorem tax on March 1, 2013. The change is part of HB386, which is designed to make Georgia more business friendly. Beginning March 1, 2013, state and local sales tax will no longer apply to the purchase of a motor vehicle purchased in Henry County. All vehicles purchased or transferred into ownership after this date will also no longer be subject to the annual ad valorem tax. Instead, these vehicles will be subject to a new, one-time state and local title ad valorem tax (TAVT) that is paid at the time owner registers the vehicle and applies for the title with the county. “Every year, we renew our tags on our birthday. House bill 386 does away with that,” said David Curry, Henry County
Tax Commissioner. “There are three parts of this bill for ad valorem taxes. Imagine three doors. The door on the left talks about if you own a vehicle prior to December 31, 2011, you will continue to get an ad valorem tax bill in the future. The door on the right is for March 1, 2013 moving forward. You will fall under the new system, and won’t have an option. You will come in and pay your 6 ½ percent title fee and get your tag. After that, you pay only $20 for your tag renewal. The door in the middle is for the 14 months in the middle that people will have an option if they want to opt in to the new law or remain under the old law.” The new system for taxing vehicles only applies when the ownership of the vehicle is transferred through a title exchange. All vehicles purchased on or after March 1, 2013 are subject to this new system, regardless of where the vehicle is purchased. Vehicles purchased through a private sale that were previously exempt from sales tax, such as vehicles that are Continued on Page 3 the henry county update
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