HB551: HB551 Motor vehicles; conditions, procedures, and limitations for issuance of temporary operating permits; provide

Georgia currently lets car dealers issue paper temporary operating permits (temporary tags) to buyers while their registration is processed. This bill lets the Department of Revenue authorize third-party companies to build and run an electronic system for issuing those permits, sets rules for who can access it, and lets the department suspend a dealer's access if the dealer issues permits for vehicles that were not actually sold or otherwise breaks the rules, with hearing rights for suspended dealers. The bill also updates dealer master plate fees and definitions, changes the definition of an 'established place of business' for used car dealers, and limits vehicle immobilization (the practice of locking a trespassing car's wheel) to places where local governments have approved it by ordinance, adding notice and licensing requirements. It doubles ad valorem tax penalties for people who use passive business entities to dodge vehicle registration deadlines. The changes take effect January 1, 2026.

• Authorizes the Department of Revenue to let approved third parties build and run an electronic system for issuing temporary operating permits (temporary tags) to dealers.
• Allows the department to suspend a dealer's access to that electronic system for issuing permits on unsold vehicles or otherwise violating permit rules, after notice and an informal review.
• Gives suspended dealers a right to a formal hearing under Georgia's Administrative Procedure Act and lets the department impose fines up to $100 per violation or suspend dealer plates for up to 24 months.
• Limits vehicle immobilization (wheel-locking) of trespassing vehicles to jurisdictions where the local government has approved it by ordinance or resolution, and requires immobilization operators to be licensed by the Department of Public Safety.
• Doubles the ad valorem tax penalty for Georgia residents who own at least half of a 'passive entity' (a business that mainly just holds assets) that fails to register a vehicle on time.
• Revises the definition of 'established place of business' for used car dealers and updates dealer master plate fees and expiration rules.

Car dealers and buyers of new or used vehicles, third-party companies that might run electronic tag-issuance systems, county tag agents, towing and vehicle immobilization operators and the property owners who hire them, local governments deciding whether to allow immobilization, used car dealers, and people who own vehicles through passive business entities.

Buyers could see temporary tags issued more consistently through an electronic system, while dealers who abuse the system face suspension and fines. Property owners could no longer have trespassing cars immobilized unless their city or county has approved it, and people dodging vehicle taxes through shell entities would face steeper penalties.

• Section 1 revises O.C.G.A. § 40-2-8 on penalties for operating unregistered vehicles or vehicles lacking valid decals or temporary permits.
• Section 2 rewrites O.C.G.A. § 40-2-8.1 to define 'dealer,' set 45-day temporary permit rules, and create the electronic temporary operating permit issuance system with a suspension and hearing process for violations.
• Section 2 sets fines up to $100 per violation and allows suspension of a dealer's electronic system access or dealer plates for up to 24 months for unlawfully issued permits.
• Section 4 updates dealer master plate fees, setting a $62.00 initial fee and $12.00 for each additional plate, and revises plate replacement and expiration rules.
• Section 8 revises the definition of 'established place of business' for used motor vehicle dealers under O.C.G.A. § 43-47-2, including a minimum 250 square foot requirement unless 500+ sales occur annually.
• Section 9 limits immobilization of trespassing vehicles to jurisdictions that have authorized it by ordinance or resolution and requires immobilization operators to hold a state permit, removing the prior civil penalty authority.
• Section 10 doubles ad valorem tax penalties under O.C.G.A. § 48-5C-1 for residents who own at least 50 percent of a 'passive entity' that fails to timely register a vehicle.
• Section 11 sets the effective date as January 1, 2026.

1. 2025-05-14Effective Date 2026-01-01
2. 2025-05-14Act 272
3. 2025-05-14House Date Signed by Governor (House)
4. 2025-04-10House Sent to Governor (House)
5. 2025-04-02Senate Agreed House Amend or Sub (Senate)
6. 2025-03-31House Agreed Senate Amend or Sub As Amended (House)
7. 2025-03-27Senate Passed/Adopted By Substitute (Senate)
8. 2025-03-27Senate Third Read (Senate)

• Jason Ridley (R, HD-006)Primary sponsor
• John Corbett (R, HD-174)
• Rick Jasperse (R, HD-011)
• Danny Mathis (R, HD-133)
• Todd Jones (R, HD-025)
• Jason Anavitarte (R, SD-031)

1. PassedHouse voteMarch 4, 2025

   168 yea, 2 nay (6 not voting, 4 absent)

   Passage: House Vote #167

2. PassedSenate voteMarch 27, 2025

   48 yea, 3 nay (3 not voting, 2 absent)

   Passage By Substitute: Senate Vote #305

3. PassedHouse voteMarch 31, 2025

   162 yea, 3 nay (4 not voting, 11 absent)

   Agree To Senate Sub As Am: House Vote #359

4. PassedSenate voteApril 2, 2025

   50 yea, 3 nay (0 not voting, 3 absent)

   Agree To House Amendment To Senate Substitute: Senate Vote #414

• motor vehicle registration
• dealer plates
• temporary tags
• vehicle immobilization and towing
• vehicle taxes