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 = 0.01840
0.01840 x 1000
18.40 gross mills
Georgia Department of Revenue
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 …
Georgia Department of Revenue
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
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
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
Georgia Department of Revenue
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 as
Notice of Tax Increase
Georgia Department of Revenue
Georgia Department of Revenue
Format for Notice of Tax Increase
Georgia Department of Revenue
Georgia Department of Revenue
Georgia Department of Revenue
Digest Submission Date?
st
1
August
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 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.
Georgia Department of Revenue
No digest in sight?
Voluntary Collection Order issued by
Revenue Commissioner.
Temporary Collection Order issued by
Superior Court Judge. 48-5-310
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. § 40-1-1(33)
– Titled Vehicles
Georgia Department of Revenue
How is TAVT Calculated?
-
FMV of vehicle
Trade In Value
Taxable Value
(dealer sales only)
Taxable Value * rate = Tax Due
Georgia Department of Revenue
Comparison
Pre-March 1
March 1
$35,000 sale price
- $15,000 trade in allowance
$20,000 taxable value
$35,000 sale price
- $15,000 trade in allowance
$20,000 taxable value
7.0% Sales Tax = $1,400
Title Ad Valorem Tax Due =
$1,300.00
Ad valorem based on 25 mills =
$350 ($35,000 * .40 * 25 mills)
Year 1 taxpayer pays $1,750
$450 savings in year 1
+ annual ad valorem tax in future
years
Georgia Department of Revenue
Non-dealer (casual) transactions
Pre-March 1
March 1
$35,000 value
$35,000 value
- No allowance for trade in
$35,000 taxable value
$350 annual ad valorem tax
Title Ad Valorem Tax Due =
(25 mills * $14,000 assessed value)
+
$18.00 Title Application Fee
+
$20.00 Registration Fee
$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
• 2014 - $1,020,000,000
• 2015 - $1,040,000,000
• State base amount = $535 M
Georgia Department of Revenue
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%
Georgia Department of Revenue
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
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 Distributed to:
& fees
State title ad
valorem tax,
fees, salvage,
penalties,
interest,
administrative
fees
State
(deposited in
General
Treasury)
Deductions
1%
Administrative
Fee (to be
remitted to the
collecting
county’s
general fund)
Penalty
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
County
School
Special Districts
Municipalities
Amount Collected
March 2012
Amount Collected
March 2013
Difference
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 TrueUp
(= Same Month/2012)
County M & O
School
Municipalities
TOTALS
Unincorporated
$ 34,521.23.
$ 1,726.06
$ 36,247.29
Incorporated
$ 70,144.52
$ 3,507.23
$ 73,651.75
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
City 1
$ 11,235.12
$ 561.76
$ 11,796.88
City 2
$ 1,985.47
$
$ 2,084.74
$322,330.65
99.27
$ 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)
1st
Third
County
&
Independent
School Systems
2nd Third
Local
Governments
or
Schools
3rd Third
Local
Governments
Georgia Department of Revenue
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
Georgia Department of Revenue
Distribution of 2nd Third
IF
The county has ELOST
Then
Distributed to the county school boards
and the municipal school boards “in the
same manner as required under the local
constitutional amendment.”
If county has LOST: Distributed to the
county authority and each qualified
If no ELOST then funds distributed to local municipality in the county according to
governments
the county’s LOST distribution certificate.
If no LOST: Distributed based on
population
Georgia Department of Revenue
Distribution of 3rd Third
If …
Then …
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:
The county has SPLOST or expired SPLOLST
- 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
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
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
vicki.lambert@dor.ga.gov
For Digest Questions
Ellen Mills
ellen.mills@dor.ga.gov
Georgia Department of Revenue