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Old 09-15-2012, 09:11 AM
 
Location: Atlanta, GA
48 posts, read 113,813 times
Reputation: 15

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So I just got a notice in the mail for my ad valorem tax, which will be due by the end of October. However, I am planning on buying a new car within the next couple of weeks (probably before the end of September). Does anyone know how this works.....do I still owe the ad valorem tax based on my old car, or will it be based on my new car now?
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Old 09-15-2012, 09:28 AM
 
2,530 posts, read 4,775,133 times
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First of all, Ad Valorem Tax is going away and being replaced by a Title Tax. The Title Tax techincally does not start until March 2013 but if you buy a car in 2012 you can apply any taxes paid to the Title Tax.

The new Title Tax will be a flat 7% one time tax and will replace the combo of the Sales Tax plus annual Ad Valorem Tax that you currently pay.

So when you buy the new car you will pay the Sales Tax plus Ad Valorem on that car but make sure you apply it to the Title Tax (not sure how that is done). You will no longer have annual ad valorem taxes after that point. Anyone with a car purchased before 2012 will continue to pay Ad Valorem.
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Old 09-15-2012, 02:16 PM
 
Location: East Side of ATL
4,586 posts, read 7,713,506 times
Reputation: 2158
You won't owe any taxes until next year but you will owe your $20 tag fee.
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