House Bill 386 was passed by the 2012 Georgia General Assembly and provides for a new method of taxation for certain motor vehicles effective March 1, 2013. As I understand the rules, if we finance the sale of a vehicle between individuals then we are going to need to collect and pay the TAVT before the title will be processed and our lien filed. The rule is new so Ga DOR and the county offices are still working out the details for how this is to be handled. However, my question focuses on how we should disclose this tax on loan documents. Would we disclose this as a fee payable to a 3rd party, or would we not show as a fee but just show as a disbursement to DOR out of the loan proceeds? If the borrower wants to pay the fee out of pocket do we even have to show it at all on the loan documents? Any suggestions?

Can you put a link to this on here, please? The only bill 386 I find is a resolution commending some preacher or something.

RR Joker, I haven't located the Bill just yet but here is a link to DOR's website with FAQ regarding the requirements.

DOR FAQ

Thanks for taking a look at this.

Try
http://www.legis.ga.gov/legislation/en-US/Display/20112012/HB/386

Glancing through, I don't see where the responsiblity falls on a lender. It appears it would be collected at the tag office (or dealer). Can you point me to where you found lender responsiblity, or is that hearsay??

From a legal perspective the law doesn't require the lender to collect it, but as a practical matter when the sale is between two individuals and the bank is financing the sale, title transfer and the recording of our lien occurs when we fund the loan and submit the title for recording to the county tag office. I'm thinking we would not want to have the title transferred to our borrower without ensuring the lien is filed. Perhaps other banks handle it differently and we need to explore those options?? It's a case of "we've always done it this way", so I'm definately open to new ideas if anyone has any.

Here is the calculator for calculating the new tax. I have a .pdf from the Department of Revenue, but it basically explains it and refers you to the below site:

http://onlinemvd.dor.ga.gov/Tap/welcome.aspx