not be paid, provided that the application for title is accompanied by GADOR Form MV-67. https://dor.georgia.gov/mv-67-affidavit-exemption-stateand-local-title-ad-valorem-taxes-loaner-vehicles Loaners are exempt from TAVT for a period of 366 days but ARE subject to use tax during the period of loaner service. Is there any tax owed on loaners during the period of loaner service? Yes. Use tax must be paid during the period of loaner service. Even though a loaner vehicle is exempt from TAVT, it is not exempt from all taxation. Consistent with the rule that applied prior to the implementation of TAVT, use tax must be accrued and paid during the period in which a vehicle is in loaner service. Use tax is calculated based on Daily Rental Value predetermined by the GADOR in Regulation 560-12-2-.09. https://rules.sos.ga.gov/GAC/560-12-2-.09?urlRedirected=yes&data=admi n&lookingfor=560-12-2-.09 GADA Word of Warning: The state Department of Revenue can and will audit dealers to ensure use tax is being collected on loaners! HEADLIGHTS ON THE LAW Loaners, Demos and Rentals: BEWARE! BEN JORDAN GADA GENERAL COUNSEL & DIRECTOR OF GOVERNMENTAL RELATIONS Here in Georgia, fall is approaching, which means cooler temperatures (finally!) and plans for Halloween. During this season of trick or treating, Georgia dealers are encouraged to review how their dealership handles loaner vehicles, demonstrators and rentals. Otherwise, dealers may receive a visit from a scary government auditor who will demand more than just candy before he leaves. Hopefully, this summary below will help dealers avoid that frightening experience by ensuring their operations comply with the law. LOANERS What is a loaner vehicle? A loaner vehicle is a motor vehicle that is withdrawn temporarily from dealer inventory for exclusive use as a courtesy vehicle. A loaner is provided at no charge to a customer whose motor vehicle is being serviced by such dealer. A loaner vehicle may be loaned for a period not to exceed 45 days to any one service customer. Can a dealership use dealer tags on loaners? No. A dealership may not use dealer tags on service loaners. According to Georgia law, dealer tags may only be used on demonstrators, vehicles in transit for delivery and vehicles personally driven by officers and employees of a dealership. Vehicles withdrawn from inventory for use as service loaners must be titled and tagged in the name of the dealership or other dealership-affiliated entity. If a loaner must be titled and tagged, doesn’t TAVT need to be paid? No. When TAVT was implemented, GADA was successful in obtaining an exemption for service loaners. Therefore, when a dealer titles and tags a loaner vehicle, TAVT need THE GENERATOR 22
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