Local Government Services& Motor Vehicle Divisions Georgia Department of Revenue
Sales Ratio Study Statistics 2012 Report Cards
Statewide Statistics • Lowest = 33.59 • Highest = 43.66 • 6 counties < 36% & owe state levy recovery • 46 > 40%
DIGEST SUBMISSION Do’s & Don’ts
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 Homes Digest 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 Utility May now bill prior year at 85% when current PU Digest is not yet available.
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. 48-2-18 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 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.
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 as 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
Motor Vehicles Title Ad Valorem Tax
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
Comparison Pre-March 1 March 1 $35,000 sale price - $15,000 trade in allowance $20,000 taxable value Title Ad Valorem Tax Due = $1,300.00 $450 savings in year 1 + annual ad valorem tax in future years $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
Non-dealer (casual) transactions Pre-March 1 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 $35,000 value $350 annual ad valorem tax (25 mills * $14,000 assessed value) + $18.00 Title Application Fee + $20.00 Registration Fee
Distributions • Proceeds disbursed within 20 days following the end of each calendar 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
Statistics • As of November 5, 2013 • 1,660,041 transactions • $842,868,293 in Revenue