REPEAL AND REPLACEMENT OF SALES TAX ON MOTOR VEHICLES
Sales and use tax will continue to apply to leases or rentals of motor vehicles. Ga. Code Ann. §48-5B-1(b)(1)(A)Ga. Code Ann. §48-5-441.1; as enacted by L. 2012, H 386, Act 607 § 1-4.] Ga. Code Ann. §48-8-3(92)Effective March 1, 2013, sales and use taxes (other than special district transportation sales and use taxes) will no longer be imposed on motor vehicles titled in Georgia. Instead, a state title fee and a local title fee will be imposed which will be alternative ad valorem property taxes as authorized by Art. VII, §1, Paragraph III (b)(3), of the Georgia Constitution. Pursuant to the constitutional provision, motor vehicles that are subject to the state and local title ad valorem tax will be classified as a separate and distinct class of tangible personal property for ad valorem property tax purposes.