In an effort to address TOPs abuse and improper use of dealer tags, the General Assembly passed House Bill 551. In addition, contracts between TOPs distributors (GADA and GIADA) have been modified. The following is a summary of the changes that have and will occur due to both revised GADOR contracts and HB 551.

Reform of TOPs System

TOPs Quantity Limits Instituted by GADOR

Effective July 1, 2025

• Pursuant to the GADOR contract, GADOR is limiting the number of TOPs each dealer can purchase and process based on that dealer’s sales history.
• Quantity limitations are implemented through the ETR vendors. However, there is a process by which dealers can request additional TOPs allocation.
• Also, pursuant to the GADOR contract, every dealership purchasing TOPs from a distributor (GADA and GIADA) is required to execute an updated agreement. Beginning July 1, the GADA TOPs ordering system does not allow a dealership to proceed with an order until an electronic signature on the agreement is obtained.

DOR may Suspend Dealer’s Access to TOP System for Violations

Effective Jan. 1, 2026

• HB 551 enables the DOR to monitor TOP issuance patterns and identify suspicious activity.
• DOR will have the authority to suspend a dealer’s access to issue TOPs immediately if there is evidence the dealer issued TOPs for vehicles not genuinely sold, not properly titled or not intended for bona fide registration.

Dealers Have Due Process Rights Before TOPs Access is Suspended

• At the request of GADA, HB 551 requires the Department of Revenue to adopt certain due process procedures before a dealer’s access to TOPs is suspended.
• Specifically, if the department notifies a dealer that access will be suspended, the dealer may request an informal review. DOR must meet with the dealer within 10 business days before suspending access.
• The DOR can only suspend access if the dealer was “substantially out of compliance” and fails to produce satisfactory evidence of extenuating circumstances to justify their conduct.
• Even if DOR does not suspend access, it can still levy fines and penalties for dealers who violate rules and regulations regarding the issuance of TOPs.

Dealers Can Appeal Suspension of TOPs Access

• If a dealer’s TOPs access is suspended, the dealer can appeal that decision, and a formal hearing must be held within 30 days.
• The hearing must be conducted in accordance with the Administrative Procedures Act.

Dealer Plates and Other Changes

No Dealer Plates Unless Dealer Sells at Least Five Motor Vehicles Annually

• Only those dealers who sell at least five vehicles annually will receive dealer plates.
• This provision is designed to address misuse of dealer plates, including by those who use dealer plates to avoid paying the Title Ad Valorem Tax (TAVT).

Larger Office Space Requirements for Used Car Dealers

• HB 551 also increases the minimum office space requirement for used car dealers to 250 feet, unless the dealer’s location conducts at least 500 motor vehicle sales annually.

“Montana” Plates

• In another form of “tax avoidance,” some Georgia residents with expensive cars have formed business entities in Montana where they register their vehicles, even though they live in Georgia, to avoid paying TAVT.
• House Bill 551 addresses that problem by creating a new civil penalty for Georgia residents who register their vehicles under a passive entity in another state but should, by law, register such vehicles in Georgia (i.e. vehicles driven in Georgia for 60 days or more).