In 2013, Georgia implemented the title ad valorem tax, or TAVT, leveling significant implications for vehicle taxation.
Notably, the new system replaced the previous sales tax ad valorem system with a one-time tax on new purchases, leases, and out-of-state vehicle registration.
In a new Fiscal Research Center report, Senior Research Associate Laura Wheeler analyzes the impact of the transition to TAVT and provides a five-year outlook for TAVT revenues for each of Georgia’s 159 counties.
Overall, TAVT receipts are forecasted to increase by 7.5 percent between 2017 and 2022. (See Table 7 below.) State TAVT receipts are forecasted to decline 24.1 percent, while local receipts are forecasted to increase 44.4 percent.
Currently, the state receives 53 percent of total TAVT receipts, but by 2022, the state will receive just 38 percent.