HB 551: Motor vehicles; conditions, procedures, and limitations for issuance of temporary operating permits; provide

Georgia dealers currently issue paper temporary operating permits to buyers of new or used vehicles while registration is pending. This bill moves those rules into their own Code section (O.C.G.A. § 40-2-8.1), still requiring permits to expire 45 days after purchase, but now allows the Department of Revenue to authorize third-party companies to build and run an electronic system for distributing these permits to dealers. The department can suspend a dealer's access to that system for issuing permits without a real sale, with a process for informal review and a formal hearing, and can impose fines up to $100 per violation or suspend dealer plates for up to 24 months. The bill also raises the daily fine for driving an unregistered vehicle to $100 per day, updates the definition of a car dealer's 'established place of business' to require at least 250 square feet in most cases, regulates vehicle immobilization (the use of wheel locks on trespassing cars) by requiring local government authorization and a state permit, and doubles tax penalties for Georgians who own at least half of a passive out-of-state entity that fails to register a vehicle. It takes effect January 1, 2026.

• Replaces the old system of dealer-issued paper temporary permits with a new law (O.C.G.A. § 40-2-8.1) allowing the state to authorize third-party electronic systems for issuing them.
• Lets the Department of Revenue suspend a dealer's access to the electronic permit system for issuing fraudulent permits, with informal review, a formal hearing, and fines up to $100 per violation.
• Raises the daily fine for operating an unregistered vehicle to $100 for each day of violation, replacing the prior flat per-violation fine.
• Requires a used car dealer's physical business location to be at least 250 square feet unless it sells at least 500 vehicles a year.
• Limits placing immobilization devices (wheel locks) on trespassing vehicles to permit holders operating in cities or counties that have passed an ordinance or resolution allowing it, and removes the department's authority to fine violators up to $2,500.
• Doubles the tax penalty on Georgia residents who own at least 50% of an out-of-state 'passive entity' that fails to register and title a vehicle in Georgia within 60 days.

New and used car dealers and the third-party companies that may run electronic permit systems, Georgians who buy vehicles and need temporary tags, people who drive unregistered or improperly tagged vehicles, towing and vehicle immobilization companies, property owners dealing with trespassing vehicles, and Georgia residents who use out-of-state shell companies to hold vehicles.

Car buyers would get temporary tags through a more automated, potentially faster process, but dealers face real financial risk if the state suspends their electronic access for misuse. Drivers face steeper daily fines for unregistered vehicles, and property owners face new limits on immobilizing trespassing cars without local government approval.

• Section 1 rewrites O.C.G.A. § 40-2-8, setting a $100-per-day fine for operating an unregistered vehicle and clarifying penalties for missing license plates or county decals.
• Section 2 creates new O.C.G.A. § 40-2-8.1, defining 'dealer' as one selling at least five vehicles a year and establishing the electronic temporary operating permit system, suspension process, and fines up to $100 per violation.
• Section 4 revises dealer master plate rules under O.C.G.A. § 40-2-38, raising the registration fee to $62 and adding a $12 fee per additional plate, and removes the exemption for mopeds.
• Section 7 lets the department fine dealers up to $500 per sales transaction for falsified vehicle sale records under O.C.G.A. § 40-3-33.
• Section 8 amends O.C.G.A. § 43-47-2 to require a used car dealer's place of business to be at least 250 square feet unless it sells 500 or more vehicles annually.
• Section 9 restricts vehicle immobilization under O.C.G.A. § 44-1-13 to state-permitted operators working in jurisdictions that have authorized immobilization by ordinance or resolution, and removes the department's authority to impose a civil penalty for violations.
• Section 10 amends O.C.G.A. § 48-5C-1 to double the ad valorem tax penalty for Georgia residents who own at least 50% of a passive out-of-state entity that fails to register a vehicle.
• Section 11 sets the effective date as January 1, 2026.

1. 2026-01-01Effective Date
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-6)Primary sponsor
• John Corbett (R, HD-174)
• Rick Jasperse (R, HD-11)
• Danny Mathis (R, HD-133)
• Todd Jones (R, HD-25)
• Jason Anavitarte (R, SD-31)

1. PassedHouse voteMarch 4, 2025

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

   PASSAGE: House Vote #167

2. PassedSenate voteMarch 27, 2025

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

   PASSAGE BY SUBSTITUTE: Senate Vote #305

3. PassedHouse voteMarch 31, 2025

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

   Agree to Senate Sub as Am: House Vote #359

4. PassedSenate voteApril 2, 2025

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

   AGREE TO HOUSE AMENDMENT TO SENATE SUBSTITUTE: Senate Vote #414

• motor vehicle registration
• temporary tags
• car dealers
• vehicle immobilization
• vehicle taxes