HB429: HB429 Ad valorem tax; exempt vehicles owned by a natural person for which a title was issued before March 1, 2013

Georgia currently taxes most vehicles owned by individuals through an annual ad valorem tax, a property tax on vehicles collected by local tax jurisdictions. This bill changes that for older vehicles. It amends Georgia's motor vehicle tax law (O.C.G.A. § 48-5-471) and adds a new section (O.C.G.A. § 48-5-472.1) creating a separate category for vehicles owned by a natural person (an individual, not a company) whose title was issued in Georgia before March 1, 2013. Vehicles in this new category would not be returned for taxation, would not be taxed, and no taxes would be collected on them going forward. The change would take effect January 1, 2027, applying to taxable years beginning on or after that date.

• Creates a new legal subclassification of motor vehicles for individually owned vehicles titled in Georgia before March 1, 2013.
• Exempts those vehicles entirely from ad valorem (property) taxation: they cannot be taxed or required to be returned for tax assessment.
• Leaves the existing ad valorem tax rules in place for vehicles owned by businesses or other entities, and for individually owned vehicles titled on or after March 1, 2013.
• Sets the exemption to take effect January 1, 2027, applying to taxable years starting on or after that date.
• Repeals any existing laws that conflict with the new exemption.

Georgia residents who personally own vehicles titled in the state before March 1, 2013 would stop owing ad valorem tax on those vehicles. County and local tax jurisdictions that collect this tax, and tax assessors' offices that process vehicle returns, are also affected.

Owners of older, individually titled vehicles would no longer pay the annual property tax on those vehicles starting in 2027, reducing their yearly costs. Local governments that rely on ad valorem vehicle tax revenue would collect less from this group of vehicles once the exemption takes effect.

• Section 1 revises O.C.G.A. § 48-5-471(a) to note that the general ad valorem taxation rule for individually owned vehicles applies except as provided in the new Code Section 48-5-472.1.
• Section 2 adds new Code Section 48-5-472.1, creating a separate subclassification for individually owned vehicles titled in Georgia before March 1, 2013, and exempting them from being returned, taxed, or having taxes collected.
• Section 3 sets the effective date as January 1, 2027, applicable to taxable years beginning on or after that date.
• Section 4 repeals conflicting laws.

1. 2025-03-10Senate Read and Referred (Senate)
2. 2025-03-06House Passed/Adopted By Substitute (House)
3. 2025-03-06House Third Readers (House)
4. 2025-03-03House Committee Favorably Reported By Substitute (House)
5. 2025-02-18House Second Readers (House)
6. 2025-02-13House First Readers (House)
7. 2025-02-12House Hopper (House)

• David Wilkerson (D, HD-038)Primary sponsor
• Brian Prince (D, HD-132)
• Devan Seabaugh (R, HD-034)
• Shaw Blackmon (R, HD-146)
• Michael Smith (D, HD-041)
• Bruce Williamson (R, HD-112)

1. PassedHouse voteMarch 6, 2025

   166 yea, 0 nay (7 not voting, 7 absent)

   Passage: House Vote #238

• property taxes
• vehicle taxes
• ad valorem tax exemption
• car ownership