Georgia Department of Revenue Local Government Services & Motor Vehicle Divisions.

Georgia Department of Revenue


Local Government Services&

Motor Vehicle Divisions


2012 REPORT CARDSSales Ratio Study Statistics


Average Overall Ratio

136

36.5

37

37.5

38

38.5

39

39.5

37.4

39.23

2008 2012


Statewide Statistics

• Lowest = 33.59 • Highest = 43.66 • 6 counties < 36% & owe state levy

recovery • 46 > 40%


School System Millage Rates

15.100%

15.200%

15.300%

15.400%

15.500%

15.600%

15.700%

15.800%

15.900%

16.000%

16.100%

2010 2011 2012


DO’S & DON’TS DIGEST SUBMISSION


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


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


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.


Add Other Property to the Digest

Motor Vehicles total values of all vehicles returned during 2012, using 2011 millage

Mobile HomesDigest provided by Board of Assessors

Timber 100% total of sales & harvests reported for 1st, 2nd, 3rd, & 4th quarters of 2012

Heavy Duty Equipment billings made during 2012

Public UtilityMay now bill prior year at 85% when current PU Digest is not yet available.


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


PENDING APPEALS – PUBLIC UTILITY


O.C.G.A. 48-2-18

48-5-18…(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. …


Public Utility BillingPublic 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.


PENDING APPEALS – OTHER


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


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”


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%


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


No digest in sight?

Voluntary Collection Order issued by Revenue Commissioner.

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


Guide for Ensuring Compliance• “2013 COMPLIANCE GUIDE FOR

ADVERTISING DIGEST HISTORY AND PUBLIC HEARINGS OF INCREASE IN TAXES” posted on website at:– https://etax.dor.ga.gov/PTD/cas/rollback/index.aspx

https://etax.dor.ga.gov/PTD/cas/rollback/index.aspx


TITLE AD VALOREM TAXMotor Vehicles


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


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


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%


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


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• As of November 5, 2013

– 1,660,041 transactions– $842,868,293 in Revenue


Contact

Vicki Lambert

[email protected]

For Digest Questions

Ellen Mills

[email protected]

mailto:[email protected]

mailto:[email protected]

Georgia Department of Revenue Local Government Services & Motor Vehicle Divisions.

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Transcript of Georgia Department of Revenue Local Government Services & Motor Vehicle Divisions.