New Vehicle Tax Change Takes Effect

Lines in at least three Metro Atlanta county tax offices were longer than normal Friday as the state began phasing out the so-called birthday tax. Under the new system, Georgians purchasing vehicles or getting their vehicles as of March 1 will have to pay a one-time 6.5 percent tax rather than the yearly Ad Valorem tax. Those purchasing vehicles between February 28 and January 1, 2012 can choose to opt into the new system.

That’s what Marietta resident Mary Ellen Storey heard at a tag office in East Cobb County. Storey bought her black Kia Sorento in May and chose to opt into the new system. If she chose not to opt in, Storey would have owed the state $400 and continual taxes until she got rid her car.



“That’s a big hit.”

But Storey found out she didn’t have pay anything, because the sales tax she paid in May applied to the new tax.

“So I’m very happy. It’s like getting a bonus.”

And Storey wasn’t alone, Cobb County tax commissioner Gail Downing says about 80 percent of people at Cobb’s five tag offices were there to opt in.  She says foot traffic was heavy but the lines weren’t as long as expected.

“I think all of our advanced preparations have really paid off for us.”

Across metro Atlanta, wait times were as high as 45 minutes to an hour in some locations. Several county tax officials say it’s possible wait times may continue to be longer than normal throughout the month of March. They’re urging residents to wait until their renewal period to visit their local county tax office and decide if they want to opt in. Some counties are also offering residents the option of applying to the new system through mail and email. Those purchasing their cars before January 1, 2012 will have to continue paying the Ad Valorem tax. Residents purchasing a new car on March 1 or later or choosing to opt into the new system will have to pay a $20 renewal fee annually. 

Click here for more information on the vehicle tax change.