March 13, 2019

Can a car dealer charge tax on pre-rebate price?

Dear Consumer Ed:

If a car dealer is selling a car with a rebate, are they allowed to charge sales tax on the pre-rebate price?

Consumer Ed says: 

For the answer to this question, we consulted the Georgia Department of Revenue.

No. The sales tax for vehicles purchased and titled in Georgia has been replaced by a title ad valorem tax or TAVT, a one-time tax based on the value of the vehicle. Rebates offered by dealers on new vehicles are not taxed as part of the TAVT.

For more information regarding TAVT, see the Frequently Asked Questions section of the Georgia Department of Revenue’s website:

Submit your own question to Consumer Ed.  Remember…we do not give legal advice. Always consult a lawyer about legal issues.

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