Georgia Ad Valorem – Trucking Update

TITLE AD VALOREM TAX IS “NO-MORE” for trucks registered in Georgia under IRP and will remain free from Title Ad Valorem Tax (TAVT) that went into effect on March 1, 2013.  The TAVT would have imposed a 6.5% tax on the purchase of trucks/tractors titled in Georgia.  IRP registered trucks will pay apportioned ad valorem taxes (as they have in the past) to the County in which the truck is registered. This is clear meaning of HB 266 (formally HB 80) which was signed by Governor Deal last night.


"The language in HB 266 makes clear what was already in last year's law," said Ed Crowell, GMTA President. "The legislature understands the need for apportionment of ad valorem taxes on trucks used in interstate commerce and has now reiterated that trucks will be taxed that way. GMTA appreciates the leadership of Rep. Tom Rice in crafting this bill, and we especially thank Governor Deal for getting this all straightened out."


The new law also ends double-taxation for leased trucks. A truck leasing company will pay the TAVT tax, but there will no longer be sales and use tax on the value of the lease. Additionally, the TAVT remains in place for all intra-state vehicles and is a real tax break for their owners.


The Department of Revenue, which has been whipsawed by the later-than-last minute changes to the TAVT law is already working to change computer systems and re-train tax collectors. Our clients are urged to recognize there may still be some glitches - and should call if they need assistance.


There are 11 legislative days remaining in the 2013 General Session.

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