Georgia Department of Revenue 2013 TAX DIGEST SUBMISSION

Georgia Department of Revenue 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

Georgia Department of Revenue Who’s Responsible? Tax Commissioner Tax Assessor County Board of Commissioners County Board of Education

Georgia Department of Revenue Board of Commissioners Board of Education Establish annual budget Set Millage rate Advertise and Hold Public Hearings

Georgia Department of Revenue COUNTY MILLAGE RATE CERTIFICATION

Georgia Department of Revenue Setting Millage Rate Budget / Net Assessed Value = Millage Rate $2,513,394 / 136,597,405 = x gross mills

Georgia Department of Revenue O.C.G.A …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 …

Georgia Department of Revenue WORKSHEETS, ROLLBACKS, ADVERTISEMENTS PT32.1A - Revenue Reduction Calculation Worksheet PT Computation of Millage Rate Rollback Current Digest and Five Year History Advertisement Notice of Property Tax Increase Advertisements Press Release

Georgia Department of Revenue 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

Georgia Department of Revenue

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.

Georgia Department of Revenue

Advertisements O.C.G.A and O.C.G.A 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 as Notice of Tax Increase

Georgia Department of Revenue

Format for Notice of Tax Increase

Georgia Department of Revenue

Digest Submission Date? August 1 st or Date approved by Revenue Commissioner

Georgia Department of Revenue 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

Georgia Department of Revenue What happens if the digest can not be submitted by August 1 st ? Request for an extension must be submitted in writing to Revenue Commissioner, along with detailed explanation of circumstances that warrant consideration for the extension.

Georgia Department of Revenue No digest in sight? Voluntary Collection Order issued by Revenue Commissioner. Temporary Collection Order issued by Superior Court Judge

Georgia Department of Revenue QUESTIONS?

Georgia Department of Revenue House Bill 386 Tax Reform Legislation Title Ad Valorem Tax

Georgia Department of Revenue 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

Georgia Department of Revenue Definitions “Motor Vehicle” means every vehicle which is self-propelled other than an electric personal assistive mobility device (EPAMD). O.C.G.A. § (33) –Titled Vehicles

Georgia Department of Revenue How is TAVT Calculated? FMV of vehicle - Trade In Value (dealer sales only) Taxable Value Taxable Value * rate = Tax Due

Georgia Department of Revenue Comparison Pre-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 $20,000 taxable value Title Ad Valorem Tax Due = $1, $450 savings in year 1 + annual ad valorem tax in future years

Georgia Department of Revenue 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 $35,000 taxable value Title Ad Valorem Tax Due = $2,275 + $18.00 Title Application Fee + $20.00 Registration Fee

Georgia Department of Revenue 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 $1,020,000, $1,040,000,000 State base amount = $535 M

Georgia Department of Revenue State & Local Title Ad Valorem Tax Rates Tax YearTax RateState %Local % %57%43% %45% 20157%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%

Georgia Department of Revenue Annual Notification –January 15 th date for commissioner to make determination of the rate (split) –January 31 st 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 1 st distributions cannot be made until notification from DOR of the adjusted rate

Georgia Department of Revenue 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%

Georgia Department of Revenue Distributions Proceeds disbursed within 20 days following the end of each calendar month

Georgia Department of Revenue Distribution to State Ad valorem tax & fees Distributed to:DeductionsPenalty 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

Georgia Department of Revenue 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

Georgia Department of Revenue “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

Georgia Department of Revenue 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 2013Difference County School Special Districts Municipalities

Georgia Department of Revenue Levy Type District & Name Net Annual Ad Valorem Tax Before True-up TAVT True-up Net Annual Ad Valorem Tax after True- Up (= Same Month/2012) County M & O Unincorporated$ 34, $ 1,726.06$ 36, Incorporated$ 70,144.52$ 3,507.23$ 73, School County M & O$222,751.00$11,137.55$233, City 1 School$ 8,652.31$ $ 9, City 2 School$ 7,562.23$ $ 7, Municipalities City 1$ 11,235.12$ $ 11, City 2$ 1,985.47$ 99.27$ 2, TOTALS $322,330.65$ 16,116.54$338,447.24

Georgia Department of Revenue 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

Georgia Department of Revenue Distribution of TAVT (3 Thirds)

Georgia Department of Revenue Distribution of 1 st 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

Georgia Department of Revenue Distribution of 2 nd Third IFThen The county has ELOST Distributed 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

Georgia Department of Revenue Distribution of 3 rd Third If …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.”

Georgia Department of Revenue Statistics Reports/payments received through April 24 th 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

Georgia Department of Revenue Statistics For March 2013 (for counties that data was available) 5 counties “negative” for ad valorem tax true-up Brantley Miller Pulaski Ware Washington

Georgia Department of Revenue Statistics Daily Average to date for April –$4.7 M –9,000 transactions (all types)

Georgia Department of Revenue 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

Georgia Department of Revenue Contact Vicki Lambert For Digest Questions Ellen Mills

Georgia Department of Revenue