The 2023 Regular Session of the Georgia General Assembly concluded on March 30, 2023. The good news for franchise dealers is that no legislation passed that would threaten the dealership franchise system in Georgia. Indeed, no bill to expand factory “direct” sales was introduced.

One bill that did pass and will impact Georgia’s dealers is Senate Bill 146, which concerns electric vehicle charging. This bill was authored by Senator Steve Gooch (R-Dahlonega) and sponsored in the House by Rep. Rick Jasperse (R-Jasper). This piece of legislation establishes a tax and regulatory framework for the maintenance and retail sale of electricity for battery-electric vehicles in Georgia.

Specifically, this bill permits the retail sale of electricity by the kilowatt hour for purposes of charging an EV. The bill also tasks the Georgia Department of Agriculture with regulatory oversight of EV charging stations, similar to the role it plays for gasoline pumps by requiring that charging stations be registered with the Department of Agriculture, employing inspectors to ensure charging stations accurately report the amount of electricity delivered to vehicles, and setting rules for the advertisement of electricity to be sold. Finally, this bill imposes an excise tax on the electricity sold to customers when charging their electric vehicles, and the rate imposed will be based on a gasoline equivalency.

For dealerships, this bill means you may charge customers by the unit of electricity for charging their EVs (under current law, retailers can only charge for the time associated with the charge). It also means dealers will come under the regulatory purview of the Department of Agriculture for their EV chargers, just as they are for any gasoline pumps on their premises, and dealers will be required to maintain records of electricity sold to customers for purposes of EV charging.

The regulatory and taxation portions of Senate Bill 146 take effect on Jan. 1, 2025, so dealers and other businesses have over one year to prepare. Before then, we anticipate regulations will be adopted by the Department of Agriculture and potentially by the Department of Revenue to provide additional guidance for how these new systems will work. In the meantime, dealers are encouraged to start reviewing their EV charging practices and notify any third-party vendors that the rules for charging will soon change.

Issues on the Horizon: Dealers Plate and Temp Permits (TOPs)

One legislative issue on the immediate horizon concerns the use of dealer license plates and the misuse of temporary operating permits (TOPs). According to media reports, Georgia TOPs are being sold by licensed dealers outside of retail sales. Those TOPs are then used for avoidance of taxes and tolls and in criminal enterprise. Because of these reports, GADA anticipates legislators will hold meetings this summer to discuss potential changes to laws and regulations regarding TOPs and dealer plates.

Although we suspect these problems primarily involve the used car market, Georgia’s franchise dealers should take the time to ensure compliance with state laws regarding TOPs. According to the Department of Revenue:

• TOPs may not be used for test drives, for employee use or for transporting vehicles from one location to another.
• Dealers may only issue a TOP to a consumer that purchased the vehicle from that dealer. TOPs must not be sold or issued outside of a retail sale.
• When a vehicle owner requests the cancellation of a TOP or the TOP must be canceled, Form MV-300 should be used and submitted to the County Tag Office. Please ensure cancellation to avoid misuse.
• The Department of Revenue can impose fines and other penalties on dealers that abuse TOPs or allow the abuse of TOPs.

Be sure to stay tuned for more on these topics as we gear up for the 2024 legislative session.