Annual 'Birthday Tax' Being Replaced by Title Tax
House Bill 386 removes the sales tax and the annual ad valorem tax on newly purchased vehicles that used to become due on your birthday every year. The new law becomes effective March 1, 2013.
The “Birthday Tax” is going away later this year. Effective March 1, 2013, House Bill 386 removes the sales tax and the annual ad valorem tax on newly purchased vehicles that used to become due on your birthday every year. It replaces these taxes with a new 6.5 percent title tax. Here's what you need to know, according to the Gwinnet County Tax Commissioner’s Office: If you purchase a vehicle on or after March 1, 2013, you will pay the new title tax to the tag agent in the county in which you register the vehicle. You pay when you apply for the title and register the vehicle. The new title tax is not due every year but is due each time the vehicle is sold and titled. It applies to dealer sales as well as sales between individuals. The new …
