georgia department of revenue local government services & motor vehicle divisions
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Georgia Department of Revenue
Georgia Department of Revenue
Local Government Services&
Motor Vehicle Divisions
Georgia Department of Revenue
2012 REPORT CARDSSales Ratio Study Statistics
Georgia Department of Revenue
Average Overall Ratio
136
36.5
37
37.5
38
38.5
39
39.5
37.4
39.23
2008 2012
Georgia Department of Revenue
Statewide Statistics
• Lowest = 33.59 • Highest = 43.66 • 6 counties < 36% & owe state levy
recovery • 46 > 40%
Georgia Department of Revenue
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
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 CommissionersBoard 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
Georgia Department of Revenue
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.
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
PENDING APPEALS – PUBLIC UTILITY
Georgia Department of Revenue
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. …
Georgia Department of Revenue
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.
Georgia Department of Revenue
PENDING APPEALS – OTHER
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 asNotice 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
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. 48-5-310
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:– https://etax.dor.ga.gov/PTD/cas/rollback/index.aspx
Georgia Department of Revenue
TITLE AD VALOREM TAXMotor 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
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
$20,000 taxable value
Title Ad Valorem Tax Due = $1,300.00
$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 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
Distributions
• Proceeds disbursed within 20 days following the end of each calendar month
Georgia Department of Revenue
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
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 2013 Difference
County
School
Special Districts
Municipalities
Georgia Department of Revenue
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
Georgia Department of Revenue
Distribution of TAVT (3 Thirds)
1st ThirdCounty
& Independent
School Systems
2nd ThirdLocal
Governmentsor
Schools
3rd ThirdLocal
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 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
Georgia Department of Revenue
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.”
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
vicki.lambert@dor.ga.gov
For Digest Questions
Ellen Mills
ellen.mills@dor.ga.gov
Georgia Department of Revenue
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