Regional Workshops Georgia Municipal Association

Transcription

1 Regional Workshops Georgia Municipal Association Cartersville Gainesville Garden City Albany

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3 Local Government Services Division Ellen Mills, Director 1. Georgia Certification Program 2. Public Utility 3. Unclaimed Property 4. Distribution 5. Digest Compliance 3

4 Georgia Certification Program Mark Loyd, Manager Statutory Requirement for DOR to instruct Local Tax Officials O.C.G.A O.C.G.A O.C.G.A O.C.G.A O.C.G.A

5 Training: Local Tax Officials Tax Commissioners and staff Boards of Assessors Tax Appraisers Boards of Equalization County Hearing Officers Assessment Vendors 5

6 Training: Tax Commissioners and Staff 20 Hrs: Delinquent Tax Collection New Tax Commissioner Training 3 or 6 Hrs: Ad Valorem 101 Ad Valorem 201 Ad Valorem 301 Digest Submission Final Accounting Penalties and Interest Exemptions CAVEAT Bankruptcy UGA Financial (online) CIP Debt Administration Budget Internal Controls Gov t Accounting Purchasing Revenue Admin Treasury Mgmt 6

7 Training: Assessors / Appraisers / Vendors 40 Hrs: Course I Course IA Course II Course III Course IVA Course IVB Course V 20 Hrs: Verification PP Basic Acct Timber Regs Exempt Specialized Manufactured CAVEAT 20 Hrs: APM Digest Rev App Procedure Appr Math GIS Adv Income Income Rev Assr Recert WinGap: Basic DE Admin Technical Residential Personal Commercial IAAO (online) 171-Standards 452- Fundamentals 801-Site Analysis 802-Cost 803-Sales 804- Income 805-Mass Appr 808-Math 809-Excel Course VI GAA 810-Real 811-GIS 812-Adv GIS 859-SPSS USPAP 7

8 Training: Boards of Equalization 40 Hrs: 8 Hr: 20 Hrs: Initial certification course Annual Update provided both in class and online Beginning 2016 recertification course provided both in class and online 8

9 Training: County Hearing Officers 8 Hr: 4 Hrs: Initial certification course Beginning 2016 annual update available in class or online 9

10 2016 GATO for Tax Commissioners Athens Classic Center May 10, 11, CAVEAT for Assessors UGA Center for Continuing Education May 17, 18, 19 10

11 2016 SHORT COURSE Location to be determined November Various classes offered, including. Delinquent Tax Collection (20 hrs) 11

12 Public Utility Section Charles Nazerian, Manager Appraise Public Utility Companies Appraise Railroad Equipment car companies, collect, and distribute tax Collect and distribute TVA payment in lieu of tax Collect and deposit Public Service Commission Fees 12

13 1. Appraise utilities, railroads, flight equipment 2015 Public Utility Digest was approved by the State Board of Equalization on November 3,

14 Electric Power Companies (7) 14

15 Gas Companies (26) 15

16 Telecommunication Companies (75) 16

17 Pipelines (9) 17

18 Electric Membership Co-op (50) 18

19 Air Tran American Delta FedEx Northwest UPS Flight Equipment (37) 19

20 Railroads (26) 20

21 Public Utility Appeals Prior Year Appeals: Bellsouth Telecommunications (2012, 2013, 2014) Several Airline Flight Equipment Accounts (2014) CSX Railroad (2014 recently settled) 2015 Appeals currently being filed 21

22 2. Assess and Collect Tax on over 200 private rail car companies Assessment is based on track miles within each jurisdiction DOR collects Distributes funds to counties and cities 22

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24 3. Disburse TVA Payment in Lieu of Tax Tennessee Valley Authority issues payments in lieu of tax to DOR to be dispersed to certain north GA jurisdictions DOR receives monthly and distributes quarterly 24

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26 4. Collect and Disburse Public Service Commission Fees $1,050,000 Collected from various regulated public utilities 26

27 Unclaimed Property Section Steve Harbin, Manager The Disposition of Unclaimed Property Act, O.C.G.A. Section et. seq., protects the rights of owners of abandoned property and relieves those holding the property of the continuing responsibility to account for such property. Under the Act, when someone ( holder ), holds property that belongs to someone else ( owner ) but has lost contact with that owner for a specified period of time ( dormancy period ), that holder must turn over ( remit ) the property to the state. The state serves as custodian for property remitted under the Act, allowing the owners or their heirs an opportunity to claim their property in the future. 27

28 Unclaimed Property: Average Annual Collections and Claims Safe Deposit Box Onsite Storage Securities $17 million Unclaimed Funds $165 million Claims paid $20 million 28

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31 Unclaimed Property: Search 31

32 Distributions Section Jonathan Ussery, Manager Responsible for tax distributions to local governments. Sales Tax E-911 Prepaid Wireless Fees IRP-Alternate Ad Valorem Tax Forest Land Assistance Grants 32

33 Distributions to Local Entities over $4 Billion annually Monthly Sales Tax $400 million Annual E-911 Prepaid Wireless Fee $15 million IRP Alternate Ad Valorem Tax $16 million Forest Land Assistance Grants $30 million 33

34 Sales Tax: Functions of LGS Division Monthly: Coordinate distribution of sales tax proceeds to local authorities Verify accuracy of monthly distribution through ITS reports Quarterly: Publish local sales tax rates to the DOR web Update ITS with current rates for accurate reporting Post commodity sales data to the web Ongoing: Track effective dates and amount of tax distributed to local governments Maintain list of local sales taxes that have been voted-on and passed Assist local governments with requests for data 34

35 Sales Tax: Relevant to Local Governments L Local Option Sales Tax (LOST) H Homestead Option Sales Tax (HOST) M Rapid Transit Sales Tax (MARTA) S Special Purpose Local Option Sales Tax (SPLOST) T Transportation (TSPLOST) E Education Local Option Sales Tax (ELOST) O Other: Municipal Local Option Sales Tax (MOST) 2 nd LOST for Muscogee 2 nd LOST for Towns 35

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37 Sales Tax: Point of Delivery Taxes are due based on Point of Delivery Point of Sale data is not available 37

38 Sales Tax: Return Taxes collected are reported by county Retailers do not report sales within city limits

39 Sales Tax: Collection and Processing Tax collection cycle Sales month (calendar) January Tax and Report due 20 th February Distribution transmitted by last business day February State and local taxes are reported and paid together Reported distributions must equal payment 39

40 Sales Tax collected by business between January 1 st and 31 st, 2015) Sales Tax Return filed and payment of collected sales tax remitted to DOR by 20th of the following month February 20, 2015 Returns and payments processed by DOR Processing occurs from last month closeout to current month closeout: January 27 February 24, 2015 Monthly closeout approximately 4 business days before month end February 24, 2015 Monthly local option sales tax distributions electronically transmitted to bank approximately 3 business days before month end February 25, 2015 Local option sales tax distributions settle in county/city bank account approximately last business day of month February 27,

41 Sales Tax: Collection and Processing Pro Rata distributions Twice each year Includes payments that cannot be processed Less than ½ percent of total payments 41

42 Sales Tax: Collection and Processing Distributions will differ among tax types Difference usually less than 3% per quarter Caused by Use taxes, compliance (late or underpayments), and refund adjustments We can research an issue of unusual distributions on request 42

43 Sales Tax: Rates and Data Rates and commodity data: Distribution data: 43

44 Sales Tax: Distribution Reports 44

45 Distributions 45

46 Distributions 46

47 Distributions 47

48 Sales Tax: Commodity Report Commodity report Distributions data by major commodity group North American Industry Classification System (NAICS) NAICS classification reported by taxpayer 48

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50 Commodity Report 50

51 Local Option Sales Tax (LOST) Authority: O.C.G.A through Purpose: Distribution: County and qualifying municipalities share tax revenues to fund services Based on Certificates of Distribution signed by county and cities 147 counties impose a LOST (October 2015) 51

52 LOST: Qualifying Municipalities O.C.G.A Must impose a tax and provide at least three of the following services: Water Sewage Garbage collection Police Fire Library 52

53 LOST: Period of Imposition Imposed until voted to cease Percentage of distribution between locals must be renegotiated every 10 years 53

54 LOST Food and beverages are taxable 54

55 Homestead Option Sales Tax (HOST) Authority: O.C.G.A through Purpose: to fund county services equal to revenues lost due to homestead exemptions and for capital outlay projects Distribution: county only 2 counties impose HOST Imposed until voted to cease 55

56 Rapid Transit Sales Tax (MARTA) Authority: Georgia Laws, 1964, page 1008, continuation of amendment under Article XI, Section I, Paragraph IV(d) of the Georgia Constitution Purpose: to fund rapid transit Distribution: MARTA only 3 counties impose MARTA tax Imposed until voted to cease 56

57 Special Purpose Local Option Sales Tax (SPLOST) Authority: O.C.G.A through Purpose: to fund capital outlay projects Distribution: county only 152 counties impose a SPLOST (October 2015) Imposed for up to 6 years 57

58 SPLOST: Referendums must specify Each major project or use Total dollar amount to be collected Length of time the tax is to be levied Certain information about general obligation debt, if it is issued in conjunction with tax levy 58

59 SPLOST: Imposition Period Ceases at maximum dollar amount or time, whichever occurs first Six year levies are time only Must vote +80 days from cessation to levy a new SPLOST Food and beverages are taxable 59

60 SPLOST: Distribution made to County County and its cities can share proceeds if: Intergovernmental Agreement is signed by county and cities County must distribute to cities Tax may be imposed for 6 years if: Intergovernmental Agreements are signed, or Certain county only Level 1 projects 60

61 SPLOST: Auditing All tax proceeds must be accounted for by county and cities for each special project These funds cannot be commingled with other county or city revenues Interest earned on such revenues must be expended in the same manner as tax proceeds County and cities must report progress of projects annually in local newspaper 61

62 Transportation Special Purpose Local Option Sales Tax (TSPLOST) Authority: O.C.G.A through Purpose: Fund regional/local transportation projects Distribution: Georgia State Financing and Investment Commission (began January 2013) 46 counties impose TSPLOST (3 regions) Imposed for 10 years or until maximum dollar amount, whichever occurs first 62

63 Prepaid Wireless 911 Fees Authority: O.C.G.A and Purpose: Distribution: Provide for imposition, collection and distribution of prepaid charges Based on population ( first distribution) 156 counties and 22 cities receive distribution (Oct 2015) About $17 million distributed to local governments 63

64 Prepaid Wireless E-911 Fees: Imposing the Fee Distribution only to those counties and cities that: Operate a public safety answering point Impose by ordinance or resolution a prepaid wireless charge of 75 cents per transaction File a copy of ordinance or resolution with the Department of Revenue, Office of Legal Affairs and Tax Policy 64

65 Prepaid Wireless 911 Fees: Collection and Distribution Returns are filed and collections made through the Georgia Tax Center portal Audited, assessed and collected in same manner as sales tax Annual distribution by October 15th 65

66 Forest Land Assistance Grants (FLAG) Authority: O.C.G.A. 48-5A-1 through 3 Purpose: Distribution: Assistance grant to offset revenue loss from forest land conservation use valuation Annual About $30 million distributed to local governments 66

67 FLAG: Application Application for FLPA funds by local governments made with county digest Funds appropriated by the legislature for upcoming fiscal year Payments begin after July 1 Funds allotted to Department of Revenue for payment in small installments throughout the year by the Office of Planning and Budget 67

68 FLAG: Distributions Example of distribution timeline: Application made with 2015 Digest submission approximately July-December 2015 Legislature appropriates funds early 2016 for upcoming fiscal year 2017 (July 2016-June 2017) FLPA funds begin being paid after July 1,

69 Alternative Ad Valorem Tax Authority: O.C.G.A Purpose: Distribution: Provide for imposition, collection, and distribution of AAVT on commercial trucks registered under the International Registration Plan (IRP) Based on benchmark and vehicle ratio formula detailed in statute About $15 million distributed to local governments 69

70 Alternative Ad Valorem Tax (AAVT) SB82 Amended OCGA by providing for a new distribution formula for AAVT (Alternative Ad Valorem Tax) proceeds collected by DOR on IRP vehicles collections: $15,948, % Admin Fee to State ($159,480.37) 70

71 AAVT: Benchmark Formula First distribution August 1, 2015 AAVT distributed based on the qualified 2013 benchmark ad valorem tax ($9,132,170.06) for IRP vehicles Year % Year % Year % Year % Year % 71

72 AAVT: Vehicle Ratio Formula Remaining funds after satisfying the benchmark distributed by the vehicle ratio formula: ($ 6,656,389.31) 1. Determine ratio of IRP vehicles registered statewide to those attributed to each county 2. Multiply ratio by funds available after benchmark 3. Distribute based on the taxes levied ratio of each qualified jurisdiction 72

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74 Digest Compliance Section Don Hicks, Manager GA DOR is responsible for the general oversight of ad valorem taxation including the authorization of county billing; approval of tax digests; and auditing county assessors and tax commissioners. 74

75 OVERVIEW OF 75

76 County Board of Tax Assessors Makes assessments on tangible property Discover taxable property Classify and Stratify property Determine values Approve/Deny Exemptions Resolve taxpayer appeals Submit listing of assessments to tax commissioner by July 15 76

77 County Tax Commissioner Compiles the assessments into the annual tax digest Produces summary reports known as Consolidation sheets Certifies and Submits tax digest to the Revenue Commissioner Bills, Collects and Distributes Tax Serves as agent of Revenue Commissioner with regards to motor vehicle titling and registration 77

78 CONSOLIDATION SHEETS Provide a summarized look at the basic make-up of each tax district within the county. Primary documents used by the Georgia Legislature, Department of Revenue, Department of Audits, State School Board and many other agencies. 78

79 Code Count Acres 40% Value Residential 6,592 1, ,980,438 Residential Transitional Historical Agricultural 33 1, ,414,610 Preferential ,162 Conservation Use ,208 Brownfield Property Forest Land Cons Use ,148 Environmentally Sensitive Commercial 1, ,373,110 Industrial ,642,998 Utility 6 0 6,843,196 Motor Vehicle 5,617 20,955,690 Mobile Home ,980 Timber 100% Heavy Equipment 3 16,446 Gross Digest 14,470 4, ,415,986 Exemptions-M&O 9,830,055 Net M&O Digest 224,585,931 TAX LEVIED TYPE ASSESSED VALUE MILLAGE TAX M & O 224,585, ,014,679.24

80 House Bill 202 Section 9 Incomplete or Improper Digests Amends OCGA by changing deadline for county tax commissioner to submit digest for approval to (Revenue) commissioner from August 1 st to September 1 st OCGA

81 Municipal Governing Authority Board of Education Establish annual budgets Set Millage rates Advertise proposed levy and Hold Public Hearings 81

82 Establish the Gross Millage Rate Budget / Net Assessed Value = Millage Rate $3,000,000 / 500,000,000 = x gross mills 82

83 Determine the Net Millage Local Option Sales Tax Rollback Sales Tax Receipts / Net Assessed Value 10,000,000 / 500,000,000 = x Mills 83

84 The amount of Local Option Sales Tax disbursed in previous calendar year may be found online at the Georgia Tax Center 84

85 Measure the Percentage of Tax Increase in proposed net millage rate PT32.1A - Revenue Reduction Calculation Worksheet PT Computation of Millage Rate Rollback 85

86 Complete the PT32.1A Forest Land Protection Act Revenue Reduction Calculation Worksheet Used to calculate the value of revenue reduction due to implementation of the Forest Land Protection Act of

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88 Complete the PT32.1 form.calculation of millage rate Rollback Rate and Percentage of Tax Increase due to Reassessment of Existing Real Property Measures the millage equivalent of the inflationary change in digest due to real property reassessment Calculation mirrors formula required by GA Code

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90 Advertise the Proposed Millage Rate Current Digest and Five Year History Advertisement Notice of Property Tax Increase Advertisements Press Release 90

91 House Bill 202 Section 7 Five Year History and Current Digest Publication Amends OCGA regarding publication of Current Digest and Five Year History by shortening the timeframe for publication from two weeks to one week prior to meeting. Also requires that advertisement be posted on authority s website 91

92 Notice of Tax Increase OCGA

93 Press Release OCGA

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95 Complete the Millage Rate Certification (PT-38) 95

96 Submit PT-77 FLPA Reimbursement Request 96

97 Property Tax Billing Electronic billing option 60 days to pay Temporary bills for property under appeal Final Billing 97

98 House Bill 202 Section 5 & 8 Tax Bills via electronic transmission Amends OCGA and regarding electronic tax bills or tax delinquency notices at discretion of tax commissioner and at option of taxpayer, in lieu of or in addition to mailed notices Tax Commissioner requirements: Portable document format (PDF) If undeliverable, then mail to address of record in assessors files Taxpayer consent via form developed by DOR 98

99 House Bill 202 Section 15 Amending Appeal Code OCGA CHO Appeal Temporary Billing Temporary bills issued while appeal pending using same procedure as temporary billing provided for in Board of equalization appeals 99

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101 House Bill 202 Section 15 Amending Appeal Code OCGA Appeal Final Decision to Tax Commissioner Within 10 days of expiration of the 30 day appeal period to superior court the board of tax assessors shall forward final determination of value to the tax commissioner 101

102 House Bill 202 Section 15 Amending Appeal Code OCGA Interest Refund Owed to Taxpayer At final billing, if refund owed to taxpayer Interest calculated from the due date or date paid, whichever later, through the date on which the final determination of value is made subject to the $150 and $5,000 limits for homestead and non-homestead property Any refund paid after 60 th day of final determination of value should include interest at 1% per month not subject to $150 and $5,000 limit 102

103 House Bill 202 Section 15 Amending Appeal Code OCGA Interest Additional Tax Due At Final billing, if additional tax due from taxpayer taxpayer is given 60 days from date of postmark to pay additional tax due without any interest added Once 60 day payment period is expired bill is considered past due and interest accrues at 1% a month from original billing due date until bill is paid in full 103

104 Delinquent Tax Collection 104

105 House Bill 202 Section 6 Ex Officio Sheriff Amends OCGA Misdemeanor to obstruct or hinder any sheriff, ex officio sheriff, tax commissioner or municipal levy officer in the levy of state, county or municipal tax execution 105

106 Amends OCGA Georgia Department of Revenue House Bill Section 4 Penalty for Failure to Pay 10% penalty is assessed if tax not paid within 90 days of due date Previously the code said 10% based on the amount outstanding on the due date.now the code says 10% based on amount outstanding at the time the penalty is assessed which is 90 days after due date: Example - $2,000 tax due on 12/20/2016 $1,500 paid 01/31/2017 $ 500 still due on 03/20/2017 Penalty based on unpaid tax on date penalty is assessed Penalty is $50 (10% of $500) 106

107 If a taxpayer fails to pay when taxes are due An execution or FiFa can be issued against the taxpayer OCGA

108 Mandatory Letter 30 day notice of intent to FiFa Demand for payment 108

109 Current Date Taxpayer Name Address City, State, Zip Delinquent Tax Department County, State Street Address City, State, Zip Telephone Number Dear : Our records indicate that your [insert year] taxes remain unpaid. Under Georgia Code I am required to notify you that 30 days from the date of this notice an execution (Fi. Fa.) may be issued against you and recorded on the General Execution Docket of the Clerk of Superior Court. This execution gives notices of a lien against your property. In addition to the interest which has accrued to date, on [insert date 90 days from due date] a 10-percent penalty and Fi. Fa. charges will be added to your account. A Fi. Fa. remains in effect for seven years. This may be listed by credit reporting agencies and may adversely affect your credit rating. In order to avoid the execution being issued and the additional charges being added, please contact this office for the current payoff and remit that amount by [insert date 90 days from due date]. Sincerely, Name Title County, State 109

110 Tax FiFa / Execution Tax FiFa or execution is the form and /or process issued for nonpayment of taxes -represents liability of taxpayer and lien on property -eventually recorded for public record 110

111 GEORGIA COUNTY Fieri Facias YEAR FI. FA. NUMBER PROPERTY DESCRIPTIONSTATE OF GEORGIA, COUNTY VS. [taxpayer and/or business name] and street address] TAX PENALTY FI.FA. INTEREST LEGAL COST TOTAL DUE [$ amt] TO ALL AND SINGULAR THE SHERIFFS AND CONSTABLES OF THIS STATE GREETINGS: YOU are hereby required, that of the goods and chattels, lands and tenements of the stated named taxpayer, you cause to be made by levy and sale sufficient thereof to make the sum of the dollars and cents within shown, the amount of state, county, and applicable school taxes and/or applicable sanitary assessment for the stated year; the further Fieri Facias sum as stated for this Fieri Facias and sufficient amount to cover interest on execution for delinquent taxes at the rate specified in O.C.G.A from December 31 of stated year, until settled, together with all costs that may hereafter accrue; and have you the said sum of money to be paid to me upon collection thereof, to be rendered to the State and County, the Principal, Penalties, Fieri Facias, Interest and legal Costs aforesaid; and have you then and there this writ. Given under my hand and official signature, this day of the stated year shown. Tax Commissioner and Ex-Officio Sheriff Entry and Notice of Levy for Tax Sale To satisfy the above Fieri Facias, incorporated herein, I have levied upon the following described property, as property of named defendant, and served the within notice of levy to defendant and/or current owner and to tenant in possession, if any, this, TO OWNER/TENANT: DEFENDANT: FURTHER DESCRIBED AS: [insert property description] Levied on [date] for the amount of $ to satisfy certain state and county fieri facias for tax, interest and legal costs for year(s) 111

112 Recording FiFa s After issuing the Fifa: record the execution on General Execution Docket in the Clerk of Superior Court Office. Recording constitutes public notice 112

113 Priority of Tax Liens Liens for taxes ranked as follows: State County School Municipality First Priority and Secured Lien attaches January 1st O.C.G.A

114 O.C.G.A Liens for taxes; priority (a) Except as otherwise provided in this Code section, liens for all taxes due the state or any county or municipality in the state shall arise as of the time the taxes become due and unpaid and all tax liens shall cover all property in which the taxpayer has any interest from the date the lien arises until such taxes are paid. (b) Except as otherwise provided in this Code section, liens for taxes are superior to all other liens and shall be paid before any other debt, lien, or claim of any kind. Liens for taxes shall rank among themselves as follows: (1) Taxes due the state; (2) Taxes due counties of the state; (3) Taxes due school and other special tax districts of the state; and (4) Taxes due municipal corporations of the state. 114

115 O.C.G.A Liens for taxes; priority (2) The lien for any ad valorem tax shall not be superior to the title and operation of a security deed when the tax represents an assessment upon property of the taxpayer other than property specifically covered by the title and operation of the security deed. 115

116 Can levy on any property owned by taxpayer Levy on property upon which ad valorem tax is due is superior to other liens Tax lien or FiFa not superior to security deed if a levy on property other than property upon which ad valorem tax due A levy on property for ad valorem tax due is superior to other liens but creditor/lien holder can pay tax due on collateral and get tax lien release on collateral (O.C.G.A ) 116

117 Levying on Property - Municipal Taxes Municipalities authorized under state statute to conduct tax sales to collect delinquent taxes Examine provisions in municipal charter and bylaws and ordinances for delinquent tax collection procedures 117

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119 Cancel the FiFas When a taxpayer pays his or her overdue taxes in full, the FiFa must be canceled by the collection officer. remember to collect the cancellation fee Record the entry of satisfaction on the GED as soon as possible O.C.G.A Entry of satisfaction to be duly recorded on execution docket. 119

120 Cancellation Process Rubber Stamp on the FiFa satisfied. Present the satisfied FiFa to CSC on GED. Mail the canceled FiFa to the taxpayer. 120

121 Local Government Services Division Ellen Mills, Director TAVT: Title Ad Valorem Tax 121

122 Motor Vehicle Title Ad Valorem Tax (TAVT) In 2012, the Georgia General Assembly passed House Bill 386 which changed the way motor vehicles are taxed in Georgia. Under prior law, motor vehicles were generally subject to Sales Tax at the time of purchase and an Annual Ad Valorem Tax every year thereafter. Under House Bill 386, motor vehicles purchased on or after March 1, 2013 are subject to a one-time TAVT and are exempt from Sales Tax and Annual Ad Valorem Tax (Birthday Tax) 122

123 TAVT: Georgia Registration and Title Information System (GRATIS) Tag registration, title application, tax collection, accounting, and disbursement functions are managed through the GA Registration and Title Information System (GRATIS) 123

124 TAVT: Pay Tax at County Tax Commissioner s Office A motor vehicle purchaser must make title application and pay TAVT to their home county of registration Apply for title and pay TAVT (7%) Pay title application fee ($18) Pay registration renewal fee ($20) 124

125 TAVT: Motor Vehicle Dealers Used or new car dealers must accept the title application and TAVT payment on behalf of the purchaser and must deliver the application and payment to the county tax commissioner of the purchaser s home county of registration. 125

126 TAVT: Tax Rate of 7% Fair Market Value 35,000 (100% value) Less Trade-in - 5,000 (dealer sales only) Taxable Value 30,000 Tax Rate x.07 Total TAVT $2,

127 TAVT: Target Amounts State Target Amount Adjusts the Tax Rate being charged Local Target Amount Adjusts how the Tax Split is calculated 127

128 TAVT: State Target Amount For the 2015 review period, the actual TAVT collected exceeded the state target collection amount. Therefore, no adjustment will be made and the rate of TAVT will remain at 7% for 2016, 2017, and In 2018, the Department will reassess the rate to determine whether a rate adjustment will be required for future years. 128

129 TAVT: Local Target Amount For 2016, the commissioner will review the Local Collection Amount and by January 31, 2016, the commissioner shall notify the tax commissioners of any adjusted tax split percentage which shall be applicable beginning

130 TAVT: Tax Rates and Tax Split Tax Year Tax Rate State % Local % % 57% 43% % 45% % 55% 45% 2016* 7% 53.5% 46.5% 2017* 7% 44% 56% 2018* 7% 40% 60% 2019*? 36% 64% 2020*? 34% 66% 2021*? 30% 70% 2022 forward*? 28% 72% 130

131 TAVT: Distribution 131

132 VQ CODES TABLE INQUIRY MENU 04/16/14 09:58:48 Location Codes: Registration Codes: Vehicle Codes: Branch Offices Tag Categories Vehicle Makes Counties Insurance Codes Vehicle Body Styles State/Provinces Self Insured Customer Vehicle Fuel Codes Printers Racf IDs Vehicle Colors Vehicle Use Codes Vehicle Use Matrix Fiscal Codes: Inventory Codes: Fee Types Millage Rates Inventory Status Codes Service Types Fin. Millages Financial Trans Title Ad Valorem Tax Rates Account Codes Other Title Ad Valorem Tax Details Account Types Title Ad Val Local Dist. Percent as of Reciprocity Chart as of MV Sales Tax Rates as of PF1/HELP PF2/ PF3/RETURN PF4/ PF5/REFRESH PF6/ PF7/ PF8/ PF9/ PF10/ PF11/ PF12/MENU 132

133 VQ TITLE AD VALOREM TAX RATES 04/16/14 10:11: of 001 START DATE END DATE TTL AV STATE LOCAL STATE-TARGET LOCAL-TARGET FIN FIN TAX RATE PCNT PCNT AMOUNT($) AMOUNT($) RAT PCT 03/01/ /31/ ,700,000 1,020,000,000 Y N 01/01/ /31/ ,400,000 1,040,000,000 Y N 01/01/ /31/ ,100,000 1,060,000,000 Y N 01/01/ /31/ ,800,000 1,080,000,000 N N 01/01/ /31/ ,500,000 1,100,000,000 N N 01/01/ /31/ ,200,000 1,120,000,000 N N 01/01/ /31/ ,900,000 1,140,000,000 N N 01/01/ /31/ ,600,000 1,160,000,000 N N 01/01/ /31/ ,300,000 1,180,000,000 N N 01/01/ /31/ ,000,000 1,200,000,000 N N 01/01/ /31/ ,700,000 1,200,000,000 N N SYS END OF DATA PF1/HELP PF2/ PF3/RETURN PF4/ PF5/ PF6/ PF7/BACKWARD PF8/FORWARD PF9/PRINT PF10/ PF11/ PF12/MENU 133

134 VQ TITLE AD VALOREM LOCAL DIST 04/16/14 10:14: of 001 START DATE END DATE TAX SEQ DISTRIBUTION DESC PERCENT FINAL TYPE NBR IND COUNTY: WHITE 03/01/ /31/ ST 1/3RD 01 WHITE COUNTY BOARD OF Y 03/01/ /31/ ND 1/3RD 01 WHITE COUNTY BOARD OF Y 03/01/ /31/ ND 1/3RD 02 CITY OF CLEVELAND Y 03/01/ /31/ ND 1/3RD 03 CITY OF HELEN Y 03/01/ /31/ RD 1/3RD 01 WHITE COUNTY BOARD OF Y 03/01/ /31/ RD 1/3RD 02 CITY OF CLEVELAND Y 03/01/ /31/ RD 1/3RD 03 CITY OF HELEN Y SYS END OF DATA PF1/HELP PF2/ PF3/RETURN PF4/ PF5/ PF6/ PF7/BACKWARD PF8/FORWARD PF9/PRINT PF10/ PF11/ PF12/MENU 134

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136 TAVT: Exempt Title Transfers 1. Vehicles owned or leased by state, county, school, municipality, or other government entity 2. Disabled Veteran O.C.G.A Former Prisoner of War O.C.G.A Veterans awarded Purple Heart O.C.G.A Veterans awarded Medal of Honor O.C.G.A

137 TAVT: Exempt Title Transfers 1. Bonded titles 2. Foreclosure of mechanics lien 3. Abandoned vehicles 4. Stolen vehicle 5. Dealer or manufacturer 6. Foreclosure of a security interest 7. Paid TAVT; moved out of state; but returns to GA 137

138 TAVT: Immediate Family Transfers If TAVT was previously paid then transfer TAVT rate is 0.50% If vehicle is currently under the annual ad valorem system (birthday tax), then transferee may choose to remain under birthday tax or pay the normal 7% TAVT 138

139 TAVT: New GA Residents New residents to Georgia at time of titling vehicle in Georgia and registering are required to pay 7% TAVT 50% at time of initial registration 50% paid within 12 months 139

140 TAVT: Older Vehicles 1963 through 1985 vehicles for which a title is obtained are subject to 1% TAVT (0.50% state and 0.50% local) Older vehicles for which no title is obtained remain under the annual ad valorem system (birthday tax) 140

141 TAVT: Vehicles donated to Non-profits Organization must be 501(c)(3) Subject to state title ad valorem tax of 1% of the FMV 141

142 TAVT: Salvage Titles Subject to state title ad valorem tax fee in an amount equal to 1% of the FMV No local title ad valorem tax collected 142

143 TAVT: Rental Vehicles TAVT rate on rental vehicles 1.25% Must be certified by DOR Must pay at least $400 sales tax per vehicle annually 143

144 TAVT: Buy Here Pay Here Dealers GA DOR regulations for Buy Here - Pay Here transactions TAVT rate will be 2.5 percentage points less than the regular TAVT 144

145 TAVT: Commercial Vehicles Commercial trucks registered under the International Registration Plan (IRP) are excluded from TAVT system and are subject to Alternate Ad Valorem Tax (AAVT) AAVT is collected and distributed by GA DOR 145

146 TAVT: Trailers Trailers remain under the annual ad valorem system (Birthday tax) 146

147 TAVT: Used MV Fair Market Value means For a USED motor vehicle the average of the current fair market value and the current wholesale value of a motor vehicle for a vehicle listed in the current motor vehicle ad valorem assessment manual utilized by the state revenue commissioner and based upon a nationally recognized motor vehicle industry pricing guide for fair market and wholesale market values in determining the taxable value of a motor vehicle under code section , and, in the case of a used car dealer, less any reduction for the trade-in value of another motor vehicle. 147

148 TAVT: Used MV Fair Market Value means For a USED motor vehicle which is not so listed in such current motor vehicle Assessment Manual the value from the Bill-of-Sale or the value from a reputable Used Car Market Guide designated by the commissioner, whichever is greater, and, in the case of a used car dealer, less any reduction for the trade-in value of another motor vehicle; 148

149 TAVT: New MV Fair Market Value means For a NEW motor vehicle, the greater of the retail selling price or, the average of the current fair market value and the current wholesale value of a motor vehicle for a vehicle listed in the current motor vehicle ad valorem assessment manual utilized by the state revenue commissioner in determining the taxable value of a motor vehicle under code section , less any reduction for the trade-in of a another motor vehicle and any rebate or any cash discounts provided by the selling dealer and taken at the time of sale. 149

150 TAVT: Value Appeals The fair market value of any motor vehicle subject to this code section shall be appealable in the same manner as otherwise authorized for a motor vehicle subject to ad valorem taxation under Code Section

151 TAVT: Value Appeals Requires 100% of the TAVT to be paid while appeal is pending House Bill 463 provision: Allows the county tax commissioner some discretion to adjust the value of a used vehicle (mileage, condition, bill of sale, ) 151

152 TAVT: Property Tax Digest TAVT is not entered on the Property Tax Digest: TAVT is assessed at 100% instead of 40% TAVT rate is 7% set by statute rather than at rate set by local government No provision in the TAVT code to be included on property tax digest. 152

153 Thank-you! 153