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How Are Georgia’s Auto Lease Laws Changing?

New GA Lease LawsCLICK HERE TO REVIEW HOUSE BILL 340

Georgia's auto lease tax laws are changing, and this is big news for anyone buying a car in 2018. Hendrick Automotive Group strives to keep you aware of anything affecting your ability to buy or lease a new vehicle, making the buying process as easy as possible.

Upon signature by the Governor, effective January 1, 2018, TAVT on leased vehicles will be calculated based on the total of lease payments, rather than the full value of the vehicle.

What does HB 340 mean for you?

Currently if you buy or lease a $50,000 car you will be assessed $3500 in TAVT. If you divide that into a 36 month lease and add interest, it is over $100/month in taxes. The new rules would mean that a $700/month base lease payment would be assessed $49/month in taxes. The law will become effective on January 1, 2018.

What is TAVT?

TAVT stands for Title Ad Valorem TAX. Motor vehicles purchased on or after March 1, 2013, and titled in this state are exempt from sales and use tax and annual ad valorem tax, also known as the "birthday tax". These taxes are replaced by a one-time tax that is imposed on the fair market value of the vehicle called the title ad valorem tax fee ("TAVT"). (source: Georgia Department of Revenue)

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