More than 50 people showed up at the Civic Center on a Thursday evening to hear Oconee County Tax Commissioner Jennifer Riddle explain the complexity of House Bill 386, which eliminates what is referred to as the “birthday” tax on vehicles.
In its place, the bill passed by the General Assembly last year puts into effect on March 1 a Title Ad Valorem Tax, which everyone who registers a vehicle must pay.
The new Title Ad Valorem Tax also replaces the current sales tax applied to vehicle sales involving dealers.
But the new Title Ad Valorem Tax also applies to the transfer of vehicles between individuals, which currently is not subject to sales tax.
At present, the Title Ad Valorem Tax rate is 6.5 percent, but that rate is scheduled to increase to 6.75 percent in 2014 and 7.0 percent in 2015.
If the tax is not generating enough revenue, the state can adjust the rate up to 9.0 percent, Riddle said.
For details of the presentation by Riddle, go to Oconee County Observations.