Q&A on the News

Q: What are the guidelines for using a dealer tag? Is the use of a dealer tag a way to avoid vehicle taxes? — Terry Jurjevich, Lilburn

A: Dealer, distributor, manufacturer and transporter tags are distributed by the Georgia Department of Revenue’s Motor Vehicle Division. Unlike the 30-day temporary tags issued to car buyers, dealer license plates are used on vehicles that are being transported for or held for resale, according to the Department of Revenue.

Dealerships pay a $62 fee each year to receive a master tag and two additional dealer plates. If the dealership sells a certain number of units each year, it is eligible to receive more dealer plates. Franchise dealers, which are defined as businesses dealing with new vehicles, also pay a $25 annual franchise fee, according to the Department of Revenue’s website.

The Official Code of Georgia has different restrictions regarding the tags’ use. For instance, dealerships can use the tags on vehicles that are owned by the dealership and operated by the company’s employees.

However, the Automobile Dealer Training Association website says if a dealer purchases a vehicle and places a dealer license plate on it with no intent to immediately sell the vehicle, it is “avoiding the payment of sales tax on the vehicle, which is not allowed in any state.”

As for temporary tags issued by dealers, the buyer can only keep the tag on for 30 days, according to the Department of Revenue’s website. Dealers cannot issue new temporary tags or extensions, so buyers must apply for a tag or tag transfer with the Tax Commissioner’s tag office. Fast Copy News Service wrote this column; Joe Youorski contributed. Do you have a question? We’ll try to get the answer. Call 404-2222002 or email q&a@ajc.com (include name, phone and city).