Registration and Licensing of Manufacturers, Distributors, and Dealers; Issuance of Manufacturer, Distributor, and Dealer Plates

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    1. Manufacturers, distributors, and dealers engaged in the manufacture, sale, or leasing of vehicles required to be registered under Code Section 40-2-20 shall register with the commissioner, making application for a distinguishing dealer's number, specifying the name and make of motor vehicle, tractor, or trailer manufactured, sold, or leased by them, upon forms prepared by the commissioner for such purposes, and pay therefor a fee of $62.00, which shall accompany such application. Upon payment of such fee by a dealer, the commissioner shall furnish to the dealer one master number plate to expire each year in accordance with subsection (f) of this Code section, to be known as a dealer's number and to be distinguished from the number plates provided for in this chapter by different and distinguishing colors to be determined by the commissioner. The dealer plate for a franchise motor vehicle dealer shall be distinguishable from the dealer plate for a used car dealer and from the dealer plate for a motor vehicle wholesaler. A dealer's number plate is for the purpose of demonstrating or transporting dealer's vehicles or trailers for sale or lease. Persons engaged in the business of transporting vehicles for a dealer under a vehicle's own power shall be permitted to use such dealer's plate for the purpose of transporting a vehicle.
    2. No dealer may use or permit to be used a dealer's number for private use or on cars for hire, for lease, or other manner not provided for in this Code section. A dealer may use or permit to be used a dealer's number for private use on vehicles owned by the dealership, regardless of whether such vehicle has been issued a certificate of title or registered, when such vehicles are operated by an employee or corporate officer of the dealer which has been issued such number. A distinguishing dealer's number used by an employee or officer for private use shall authorize such person to operate the vehicle to which the number is attached on the public highways and streets. For purposes of this paragraph, "employee" means a person who works a minimum of 36 hours per week at the dealership.
    3. The manufacturer's or distributor's license plate is limited to no longer than six months' use per vehicle. Upon payment of such a fee by a manufacturer or distributor, the commissioner shall issue to manufacturers and distributors number plates with the word "Manufacturer" or "Distributor" on such plates. Nothing in this subsection shall preclude a manufacturer or distributor from using a "Manufacturer" or "Distributor" number plate on motor vehicles it owns when such vehicles are used for evaluation or demonstration purposes, notwithstanding incidental personal use by a manufacturer or distributor. A dealer may apply for one or more distinguishing dealer's numbers. In the event the dealers, distributors, or manufacturers desire more than one tag, they shall so state on the application, and, in addition to the fee of $62.00 provided in this Code section, shall pay $12.00 for each and every additional number plate furnished.
      1. Upon application and payment of the required fee, the commissioner shall issue to manufacturer headquarters or its affiliate number license plates with the words "Manufacturer HQ" on such plates. The manufacturer headquarters license plates must be used exclusively on motor vehicles owned or in possession of a manufacturer headquarters or its affiliate. Such manufacturer headquarters plates are limited to no longer than 24 months' use per vehicle.
      2. A manufacturer headquarters or its affiliate shall apply on a form prescribed by the commissioner and shall provide proof that the applicant:
        1. Is a bona fide manufacturer headquarters; and
        2. Maintains a system of records regarding use of such license plates. The manufacturer headquarters shall state in each application the number of manufacturer headquarters license plates requested.
      3. The manufacturer headquarters or its affiliate shall pay an application fee of $62.00 per application as provided in this Code section and shall pay $12.00 for each and every plate furnished. With respect to any manufacturer headquarters license plate issued to a manufacturer headquarters or its affiliate, notwithstanding anything to the contrary in this title or Code Section 48-5C-1, such manufacturer headquarters or its affiliate, and any person operating or possessing a motor vehicle using a manufacturer headquarters license plate pursuant to this paragraph, shall not be subject to state or local title ad valorem tax fees with respect to such vehicle or manufacturer headquarters license plate.
      4. The manufacturer headquarters or its affiliate shall maintain a system of records regarding the motor vehicle to which the manufacturer headquarters license plate will be attached. Such record shall, at a minimum, contain the:
        1. Vehicle Identification Number (VIN);
        2. Name and address of the primary individual operating the vehicle; and
        3. Manner of use of the vehicle selected from the alternative uses referenced in subparagraph (E) of this paragraph.
      5. Vehicles with manufacturer headquarters license plates may be operated by persons authorized by the manufacturer headquarters or its affiliate on vehicles of its brand for the following manners of use:
        1. Evaluation, marketing, or demonstration purposes, notwithstanding incidental personal use by a manufacturer headquarters' authorized employee or other authorized person designated by such manufacturer headquarters or its affiliate; or
        2. As part of a vehicle leasing program operated by such manufacturer headquarters or its affiliate for the benefit of employees. Any operation of a motor vehicle by a person for an approved use pursuant to this subparagraph shall be deemed to be a demonstration of the motor vehicle for purposes of Code Section 48-8-39.
    4. The commissioner shall include a distinctive logo or emblem for any manufacturer's, distributor's, or manufacturer headquarters' license plate to be attached to an alternative fueled vehicle, as such term is defined in paragraph (7) of subsection (l) of Code Section 40-2-86.1. Alternative fuel vehicles bearing a special license plate pursuant to this subsection shall be subject to the alternative fuel vehicle fees as set forth in paragraph (19) of subsection (a) of Code Section 40-2-151 at the time of initial issuance and annually thereafter in a manner prescribed by the commissioner. Display of a special license plate issued pursuant to this paragraph shall authorize travel by such alternative fueled vehicle in lanes for exclusive or preferential use designated pursuant to Code Section 32-9-4.
  1. Dealer plates shall be issued in the following manner:
    1. Dealers shall be issued a master plate and two additional plates, for a total of three initial plates; and
    2. In addition to the three dealer plates issued in accordance with paragraph (1) of this subsection, each dealer may also be issued one additional dealer plate for every 20 units sold in a calendar year.

      In order to determine the additional number and classification of plates to be issued to a dealer, a dealer shall be required to certify by affidavit to the department the number of retail and wholesale units sold in the prior calendar year using the past motor vehicle sales history of the dealer as identified by department records of documentation approved by the department. If no sales history is available, the department shall issue a number of plates based on an estimated number of sales for the coming calendar year. The department may, in its discretion, request documentation supporting sales history and may increase or decrease the number and classification of plates issued based on actual sales.

  2. This Code section shall not apply in any manner to mopeds as such term is defined in Code Section 40-1-1.
  3. The license plates issued pursuant to this Code section shall be revoked and confiscated upon a determination after a hearing that such dealer, distributor, manufacturer, or manufacturer headquarters has unlawfully used such license plates in violation of this Code section.
  4. If a license plate issued pursuant to this Code section is lost or stolen, the dealer, manufacturer, distributor, manufacturer headquarters, or other party to whom the license plate was issued must immediately report the lost or stolen plate to local law enforcement agencies. If a replacement license plate is sought, the dealer, manufacturer, distributor, manufacturer headquarters, or other party to whom the license plate was issued shall file a notarized affidavit with the department requesting a replacement plate. Such affidavit shall certify under penalty of perjury that the license plate has been lost or stolen and that the loss has been reported to a local law enforcement agency.
    1. The expiration of a license plate issued pursuant to this Code section shall be the last day of the registration period as provided in division (a)(1)(A)(ii) of Code Section 40-2-21, except that for the purposes of this subsection, the registration period shall be determined by the first letter of the legal name of the business listed on the application for registration or renewal of registration. An application for renewal of registration shall not be submitted earlier than 90 days prior to the last day of the registration period. A penalty of 25 percent of the total registration fees due shall be assessed any person registering pursuant to this Code section who, prior to the expiration of such person's registration period, fails to apply for renewal or if having applied fails to pay the required fees.
    2. A transition period shall commence on October 1, 2007, and conclude on December 31, 2007, for all existing registrations and any new registration applications presented prior to January 1, 2008. On or after January 1, 2008, new applications for registration shall be submitted and remain valid until the expiration of such registration as specified in paragraph (1) of this subsection.
  5. The commissioner shall adopt rules and regulations for the implementation of this Code section.

(Ga. L. 1927, p. 226, § 7; Ga. L. 1931, p. 7, § 84; Code 1933, § 68-213; Ga. L. 1963, p. 529, § 1; Ga. L. 1977, p. 591, § 1; Ga. L. 1978, p. 2241, § 2A; Code 1981, §40-2-36; Ga. L. 1982, p. 3, § 40; Ga. L. 1985, p. 149, § 40; Code 1981, §40-2-38, as redesignated by Ga. L. 1990, p. 2048, § 2; Ga. L. 1992, p. 2978, § 1; Ga. L. 1993, p. 296, § 1; Ga. L. 1997, p. 1559, § 1; Ga. L. 2004, p. 631, § 40; Ga. L. 2005, p. 321, § 2/HB 455; Ga. L. 2006, p. 465, § 1/HB 1052; Ga. L. 2007, p. 652, §§ 3, 4/HB 518; Ga. L. 2015, p. 1219, § 2/HB 202; Ga. L. 2017, p. 774, § 40/HB 323; Ga. L. 2019, p. 486, § 2/SB 227.)

The 2017 amendment, effective May 9, 2017, part of an Act to revise, modernize, and correct the Code, revised punctuation in subparagraph (a)(4)(C).

The 2019 amendment, effective May 2, 2019, added paragraph (a)(5).

Cross references.

- Registration and licensing of makers and dealers of motor vehicles, § 40-2-153.

JUDICIAL DECISIONS

Former Code 1933, § 68-213 (see now O.C.G.A. § 40-2-38), was a license certificate law and a revenue measure. Cambron v. Cogburn, 116 Ga. App. 373, 157 S.E.2d 534 (1967).

Liability for vehicle driver's negligence.

- Dealer is not liable as a matter of public policy for the negligence of a driver of a vehicle to whom the dealer has illegally provided a dealer's tag. Cambron v. Cogburn, 116 Ga. App. 373, 157 S.E.2d 534 (1967).

OPINIONS OF THE ATTORNEY GENERAL

Mandatory registration for automobile dealer.

- It is mandatory for automobile dealer to register with commissioner and obtain a dealer tag, even though the dealer has no use for such. 1954-56 Op. Att'y Gen. p. 473.

Used car dealers were required to buy dealer's tags since there was no distinction between used car dealers and new car dealers in former Code 1933, § 68-213 (see now O.C.G.A. § 40-2-38). 1952-53 Op. Att'y Gen. p. 221.

Dealers in motor scooters are required to register and secure dealer's tags. 1954-56 Op. Att'y Gen. p. 471.

Tax commissioner accepting check returned by bank.

- When a tax commissioner accepts a check as payment for a motor vehicle license plate, which is not honored by the bank but returned marked "insufficient funds," the commissioner does not have the authority to seize or cancel the license plate which the commissioner issued; the tag agent accepts checks for motor vehicle license fees at the agent's own risk; consequently, the tag agent has a cause of action against the applicant for the amount of the license fee and the possibility of criminal action against the applicant. 1968 Op. Att'y Gen. No. 68-215.

Dealer using tags for other than demonstrating or transporting vehicles.

- Dealer who permits dealer's tags to be used for purposes other than demonstrating or transporting dealer-owned vehicles for sale may and should be prosecuted as for a misdemeanor, but the tags may not properly be picked up by a law enforcement officer unless the dealer registration has been revoked for cause. 1954-56 Op. Att'y Gen. p. 472.

RESEARCH REFERENCES

Am. Jur. 2d.

- 7A Am. Jur. 2d, Automobiles and Highway Traffic, § 161 et seq.

C.J.S.

- 60 C.J.S., Motor Vehicles, § 186.


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