The law becomes effective on March 1.
Hollums explained that titles on motor vehicles purchased on or after March 1 are exempt from sales and use tax as well as from the annual ad valorem tax. However, they are still subject to title and registration fees.
Those who purchase a new vehicle are looking at a title tax that will be 6.5 percent in 2013, 6.75 percent in 2014 and 7 percent in 2015. The title tax will be based on the fair market value of the vehicle, not the sales price, as determined by the Georgia Department of Revenue.
Georgians who purchase a new vehicle in the state between Jan. 1, 2012, and March 1, 2013, can opt to pay the new title tax instead of the current annual ad valorem tax.
Asked by the audience what she thought of HB 386, Hollums said it could be a good deal for taxpayers, though more time may be needed to fully assess the new law.