Georgia Department of Revenue Local Government Services & Motor Vehicle Divisions

Georgia Department of Revenue 2012 REPORT CARDS Sales Ratio Study Statistics

Georgia Department of Revenue Average Overall Ratio

Georgia Department of Revenue Statewide Statistics Lowest = Highest = counties < 36% & owe state levy recovery 46 > 40%

Georgia Department of Revenue School System Millage Rates

Georgia Department of Revenue DO’S & DON’TS DIGEST SUBMISSION

Georgia Department of Revenue What is the tax digest? A listing of assessments 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 CONSOLIDATION SHEETS Provide a summarized look at the basic make-up of the county. Primary documents used by the Georgia Legislature, Department of Revenue, Department of Audits, State School Board and many other agencies.

Georgia Department of Revenue

Add Other Property to the Digest Motor Vehicles total values of all vehicles returned during 2012, using 2011 millage Mobile Homes Digest provided by Board of Assessors Timber 100% total of sales & harvests reported for 1 st, 2 nd, 3 rd, & 4 th quarters of 2012 Heavy Duty Equipment billings made during 2012 Public Utility May now bill prior year at 85% when current PU Digest is not yet available.

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 PENDING APPEALS – PUBLIC UTILITY

Georgia Department of Revenue O.C.G.A …(e) …. In the event that the commissioner has not provided the “PUBLIC UTILITY DIGEST”… by August 1 … the “county tax commissioner” … may issue interim tax bills … equal to 85 percent of such (Public Utility) ….property tax bill for the immediately preceding tax year. …

Georgia Department of Revenue Public Utility Billing Public Utilities are Centrally Assessed by DOR - rather than being locally appraised by County BOA. When the county assessors receives the Notice of Value from DOR – the utility values have already been approved by the State Board of Equalization. When the utility company files an appeal of value – the appeal goes to Fulton County Superior Court. The utility company will notify the county that they have appealed the Central Assessment and will state their 'Undisputed Value'. The ‘Undisputed Value’ is the amount which should be the basis for billing by the local tax commissioner. In some instances the utility company disputes the ‘Level of Assessment' assigned by the local BOA. This happens when GA Department of Audits determines that the county's overall level of assessment ratio is below.38 and the county assessor still sets a.40 assessment ratio for public utility property.

Georgia Department of Revenue PENDING APPEALS – OTHER

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

Things to Remember Notice of Property Tax Increase Advertisements –At least 30 square inches –Published on website –Not placed in legal notice section of newspaper –Advertise at least one week (7 day) prior to meeting –Statutory language MUST be used –Submit signed “Calculation of Millage Rate Rollback and Percentage Increase in Property Taxes”

Georgia Department of Revenue Things to Remember 5-Year History –Published in newspaper of general circulation –Ad must be published two weeks prior to meeting date (14 days) Only have to publish ad one time –Required to only advertise maintenance & operation budget/mill rate –% increase/decrease cannot deviate more than 3%

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

Georgia Department of Revenue Guide for Ensuring Compliance “2013 COMPLIANCE GUIDE FOR ADVERTISING DIGEST HISTORY AND PUBLIC HEARINGS OF INCREASE IN TAXES” posted on website at: –

Georgia Department of Revenue TITLE AD VALOREM TAX Motor Vehicles

Georgia Department of Revenue 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 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 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 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 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 As of November 5, 2013 –1,660,041 transactions –$842,868,293 in Revenue

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

Georgia Department of Revenue