Georgia Department of Revenue 2013 TAX DIGEST SUBMISSION

Georgia Department of Revenue

2013TAX DIGEST SUBMISSION


What is the tax digest?A listing of assessments (value) and exemptions

Real and Personal Property

Timber

Mobile Homes

Motor Vehicles

Heavy Duty Equipment

Public Utilities


Who’s Responsible?

Tax Commissioner

Tax Assessor

County Board of Commissioners

County Board of Education


Board of CommissionersBoard of Education

Establish annual budget

Set Millage rate

Advertise and Hold Public Hearings


COUNTY MILLAGE RATE CERTIFICATION


Setting Millage Rate

Budget / Net Assessed Value = Millage Rate

$2,513,394 / 136,597,405 = 0.01840

0.01840 x 1000

18.40 gross mills


O.C.G.A. 48-5-304

…The commissioner shall not be required to disapprove or withhold approval of the digest of any county solely because appeals have been filed or arbitrations demanded on the assessment of any property or number of properties in the county …


WORKSHEETS, ROLLBACKS, ADVERTISEMENTS

PT32.1A - Revenue Reduction Calculation Worksheet

PT32.1 - Computation of Millage Rate Rollback

Current Digest and Five Year History Advertisement

Notice of Property Tax Increase Advertisements

Press Release


PT32.1A Revenue Reduction Calculation Worksheet

Used to calculate the value of revenue reduction due to implementation of the

Forest Land Protection Act of 2008



PT32.1 Calculation of Millage Rate Rollback

Amended to include Revenue Reduction Value attributable to the implementation of

the Forest Land Protection Act of 2008.



Advertisements

O.C.G.A. 48-5-32 and O.C.G.A. 48-5-32.1

Requires levying and recommending authority:To publish 5-Year History and Current Digest

If proposed millage exceeds rollback rate (as calculated by PT32.1 form) a Press Release

must be issued and three public hearings must be held and advertised asNotice of Tax Increase



Format for Notice of Tax Increase




Digest Submission Date?

August 1st

or

Date approved by Revenue Commissioner


Order Issued

The Revenue Commissioner issues an order authorizing the Tax Commissioner to proceed

with the billing & collection process.

Penalty for Collection of tax before Commissioner’s Order is Received:

Double Amount Attempted to be Collected


What happens if the digest can not be submitted by August 1st ?

Request for an extension must be submitted in writing to Revenue Commissioner, along with detailed explanation of circumstances

that warrant consideration for the extension.


No digest in sight?

Voluntary Collection Order issued by Revenue Commissioner.

Temporary Collection Order issued by Superior Court Judge. 48-5-310


QUESTIONS?


House Bill 386Tax Reform Legislation

Title Ad Valorem Tax


What changed on March 1, 2013?

• Titled motor vehicle purchased on or after March 1, 2013:• Exempt from sales and use tax• Exempt from annual ad valorem tax (birthday tax) in

Chapter 5 of Title 48

• Subject to a title ad valorem tax (TAVT)• Alternative ad valorem tax


Definitions• “Motor Vehicle” means every vehicle

which is self-propelled other than an electric personal assistive mobility device (EPAMD).

• O.C.G.A. § 40-1-1(33)

– Titled Vehicles


How is TAVT Calculated?

FMV of vehicle

- Trade In Value (dealer sales only)

Taxable Value

Taxable Value * rate = Tax Due


ComparisonPre-March 1

$35,000 sale price

- $15,000 trade in allowance

$20,000 taxable value

7.0% Sales Tax = $1,400

Ad valorem based on 25 mills = $350 ($35,000 * .40 * 25 mills)

Year 1 taxpayer pays $1,750

March 1

$35,000 sale price

- $15,000 trade in allowance


Title Ad Valorem Tax Due = $1,300.00

$450 savings in year 1

+ annual ad valorem tax in future years


Non-dealer (casual) transactions

Pre-March 1

$35,000 value

$350 annual ad valorem tax (25 mills * $14,000 assessed value)

+$18.00 Title Application Fee

+

$20.00 Registration Fee

March 1

$35,000 value

- No allowance for trade in


Title Ad Valorem Tax Due =

$2,275+

$18.00 Title Application Fee

+

$20.00 Registration Fee


Revenue & Distribution• Local Base amount = $1 billion

– Average 2007 and 2008

• Local current collection amount– Amount of ad valorem taxes collected in prior year

• Local target collection amount– Local base amount added to the product of 2% of the local base

amount multiplied by the number of years since 2012 with a maximum amount of $1.2 billion

• 2014 - $1,020,000,000• 2015 - $1,040,000,000

• State base amount = $535 M


State & Local Title Ad Valorem Tax Rates

Tax Year Tax Rate State % Local %

2013 6.5% 57% 43%

2014 6.75 55% 45%

2015 7% 55% 45%

2016* 7% 53.5% 46.5%

2017* 7% 44% 56%

2018* 7% 40% 60%

2019* 7% 36% 64%

2020* 7% 34% 66%

2021* 7% 30% 70%

2022 – forward* 7% 28% 72%


Annual Notification– January 15th date for commissioner to make

determination of the rate (split)– January 31st notification due to county tax

commissioners of the adjusted rate (split)– The effective date of such adjusted rate

amounts shall be January 1 of such tax year • 1st distributions cannot be made until notification

from DOR of the adjusted rate


Other Adjustments

• 2015, 2018, 2022– July 1 the Revenue Commissioner determines state

target collection amount (STCA) and the state current collection amount (SCCA)• If the SCCA is within 1% of the STCA – no change in rate• If the SCCA is more than 1% less of the STCA tax rate may

be increased to equal STCA & the LTCA that should have been collected and the increase is given to the state

• Notification to county no later than August 31 to be effective January 1 of next calendar/tax year

• Rate cannot exceed 9%


Distributions

• Proceeds disbursed within 20 days following the end of each calendar month


Distribution to StateAd valorem tax

& feesDistributed to: Deductions Penalty

State title ad valorem tax,

fees, salvage, penalties, interest,

administrative fees

State (deposited in

General Treasury)

1% Administrative

Fee (to be remitted to the

collecting county’s

general fund)

Failure to remit within the 20 day period results in

forfeiture of administration

fee plus interest at the rate of

1% per month


Distribution of Local Title Ad Valorem Tax• Within 20 days following the end of each

calendar month allocate and distribute in an amount to offset any reduction in ad valorem tax on motor vehicles collected under Chapter 5 of Title 48 (ad valorem tax):– County governing authority– Municipal governing authorities– Board of education of county schools– Board of education of municipal schools


“Old” Ad Valorem Tax• Titled vehicles with no ownership change• Non-titled vehicles

– 1985 or older vehicles are not required to be titled

– Trailers– Campers


How to Calculate Ad Valorem True-Up

• Subtract the amount of ad valorem tax on motor vehicles (old method) collected in the same month of 2012

District

Amount Collected March 2012

Amount Collected March 2013 Difference

County

School

Special Districts

Municipalities


Levy TypeDistrict

& Name

Net Annual Ad Valorem Tax Before True-up

TAVT True-up

Net AnnualAd Valorem Tax after True-Up

(= Same Month/2012)

County M & O Unincorporated $ 34,521.23. $ 1,726.06 $ 36,247.29

Incorporated $ 70,144.52 $ 3,507.23 $ 73,651.75

School County M & O $222,751.00 $11,137.55 $233,888.60

City 1 School $ 8,652.31 $ 432.62 $ 9,084.93

City 2 School $ 7,562.23 $ 378.11 $ 7,940.34

Municipalities City 1 $ 11,235.12 $ 561.76 $ 11,796.88

City 2 $ 1,985.47 $ 99.27 $ 2,084.74

TOTALS $322,330.65 $ 16,116.54 $338,447.24


Shortfall• What happens when there is insufficient

funds to make up the difference in ad valorem tax?– Allocate a proportionate amount of available

proceeds to each governing authority & school boards

– Any remaining funds to be paid will be paid from next month’s proceeds


Distribution of TAVT (3 Thirds)

1st ThirdCounty

& Independent

School Systems

2nd ThirdLocal

Governmentsor

Schools

3rd ThirdLocal

Governments


Distribution of 1st Third

IF…… THEN…..

The county has no independent school districts

100% of the first third goes to the county school board

The county has one or more independent school districts

The first third is shared among the county and the independent school districts based on ratio of students in each school system –or – SPLOST agreement


Distribution of 2nd Third

IF Then

The county has ELOSTDistributed to the county school boards and the municipal school boards “in the same manner as required under the local constitutional amendment.”

If no ELOST then funds distributed to local governments

If county has LOST: Distributed to the county authority and each qualified municipality in the county according to the county’s LOST distribution certificate. If no LOST: Distributed based on population


Distribution of 3rd ThirdIf … Then …

The county has SPLOST or expired SPLOLST

Current SPLOST: Distributed to the county authority and each qualified municipality in the county according to the intergovernmental agreement or as otherwise required under the SPLOST that is in effect at the time.Expired SPLOST: Distributed to the county authority and each qualified municipality according to these rules:

- If the SPLOST has expired within 12 months, distributed to the county authority and each qualified municipality in the county according to the intergovernmental agreement or as otherwise required under the SPLOST that was previously in effect.

- If the SPLOST has expired over 12 months ago, then ▪ If there is a LOST in effect, distributed to the county authority and each qualified municipality in the county according to the county’s distribution certificate ▪ If there is no LOST in effect, distributed “according to the ratio that each such municipality bears to the population of the entire county.”


Statistics• Reports/payments received through April

24th from 94 counties for March collections– $ 4,396,180 – True-up ad valorem tax– $12,140,569 – Distributed following sales tax

percentages– Total local money (not including admin fee)

• $16,536,749• Admin fee retained by counties - $203,135

– Funds remitted to State• $19,512,795


Statistics• For March 2013 (for counties that data

was available) 5 counties “negative” for ad valorem tax true-up

• Brantley• Miller• Pulaski• Ware• Washington


Statistics• Daily Average to date for April

– $4.7 M– 9,000 transactions (all types)


Statistics• TAVT through April 24, 2013

– $140,589,015 statewide– 356,335 transactions– $129,353,679 from title transfers at 6.5% rate

since March 1, 2013– 197,287 title transfers paying full TAVT rate

since March 1, 2013


Contact

Vicki Lambert

[email protected]

For Digest Questions

Ellen Mills

[email protected]

mailto:[email protected]

mailto:[email protected]


Documents

Georgia Department of Revenue 2013 TAX DIGEST SUBMISSION