Leased Vehicle Registration In Georgia State

If you live in Georgia, you may have noticed that your state's lease taxes and laws have changed. Georgia's Title Ad Valorem Tax (TAVT), which applies to new and used car purchases and leases, was updated on January 1st, 2018. What exactly is the Ad Valorem Tax on Title? First introduced in March 2013, this law requires that a tax on leased vehicles be calculated based on the total of the vehicle's lease payments rather than the vehicle's full value. The new Georgia lease tax and law will significantly reduce the cost of leasing a car in Georgia.

Car Leasing In Georgia

Before you can understand how the Georgia lease tax will affect you as a driver, you should first understand car leasing. "A lease is the car rental for a set period under a contract with the dealership." You will have many advantages when you lease a vehicle, including driving a vehicle in its prime, paying less cash upfront, having lower monthly payments, and much more. If you know you will be upgraded frequently, leasing a vehicle may be less expensive. When financing a vehicle, most people put down a large down payment, only to have it depreciate over time. When they try to sell their model, they will only accept what it is currently worth, not what you paid for it. When you lease a model, you can pay a down payment, enjoy your model, upgrade to another new model or purchase it when your lease expires! With the new TAVT in place, leasing a vehicle will result in significantly lower payments because taxes are now calculated on the total of the payments rather than the value. If you've never leased a car before, it's something to think about.

Advantage Of Car Leasing

The first and most obvious benefit of leasing is getting a larger car, truck, or SUV for less money. You only lease the vehicle for a set period, usually two or three years. As a result, you only have to pay for that portion of the vehicle's life. You not only pay less for the vehicle, but you also pay less in sales tax. Because you are only purchasing a portion of the vehicle's life, you are only responsible for the sales tax for that portion.   Leasing your car also lowers your repair costs. All manufacturer warranties are in effect when you lease a new vehicle. The warranties will cover repairs. All you have to do at the end of a lease is return the vehicle. There will be no haggling over trade-ins.

Disadvantage Of Car Leasing

The main disadvantage of leasing is that you must return the vehicle to the leasing company at the end of the lease. The car is not yours. Another disadvantage is that the number of miles you can drive the vehicle each year is usually limited. If you exceed the mileage limit, specific penalties in the lease will cost you money for each mile. When you return your leased vehicle, the leasing company will usually have a representative inspect it thoroughly. If the tires are worn, or if there is damage inside or outside, you will be held liable and charged fees for excessive "wear and tear."

Requirements In Leased Car Registration In Georgia

Leased vehicle title and license plate applications must be submitted to the County Tag Office in the lessee's home county, along with the following documents:

Completed Form MV-1 Tag and Title Application.

Titles are no longer issued with the lessee's name on them. Suppose the title is to be mailed to the leasing company. In that case, the title application should include the mailing address of the leasing company and the county in Georgia where the vehicle is located. The leasing company will be listed as the owner on the registration certificate and the lessee's name and Georgia address when the vehicle is registered at the County Tag Office. An authorized representative of the leasing company must sign the title application.

Power of Attorney or Lease Agreement

If the lessee signs the title application in place of an authorized representative of the leasing company, Form T-8 Limited Power of Attorney or a copy of the lease agreement must be submitted authorizing the lessee to sign for the leasing company.

Transfer Document.

Original valid title or manufacturer's certificate of origin issued in the leasing company's name or properly assigned to the leasing company, or out-of-state registration certificate identifying the leasing company as the vehicle's legal owner. If the vehicle's title is held by a lienholder, security interest holder, or leasing company:
  • Submit the original valid registration (tag receipt) and the completed Form T-17 Affidavit of Title Held by Lienholder, Security Interest Holder, or Leasing Company.
  • The agent from the County Tag Office will contact the titleholder to request the out-of-state title.

Emissions Inspection

Proof of Insurance

Fees

    • When the vehicle requires a title, and the application is made within 30 days of purchase or ownership transfer, the title application fee is $18.
    • License plate/registration decal fee of $20 or license plate transfer fee of $5
    • If a title is not applied for within 30 days of the purchase date, there is a $10 penalty fee.
    • Any late registration renewal or late title application penalties.