TAVT Title Ad Valorem Tax 101

Transcription

1 TAVT Title Ad Valorem Tax 101

2 Speakers Clint Mueller, Legislative Director Association County Commissioners of Georgia Vicki Lambert, Director Local Government Services Division and Motor Vehicle Division, Georgia Department of Revenue 50 Hurt Plaza, Suite 1000 Atlanta, Georgia Welcome All Rd., Suite 701 Atlanta, Georgia

3 Learning Objectives At the end of this session, you will be able to Discuss the history of the TAVT and who is eligible to receive TAVT revenue Recall what is taxable and how the tax is calculated Discuss the distribution of the TAVT between the county, cities, and schools and how the funds can be expended Discuss the impact of the TAVT on local government budgets and how administrative fees for collecting the tax are calculated Recall recent legislative changes that impact the administration and collection of the tax

4 TAVT History Several previous attempts to eliminate the Birthday Tax Passed as part of 2012 Tax Reform (HB 386) Amended during the 2013 legislative session (HB 266 and HB 463) Implemented March 1, 2013 Amended during the 2014 legislative session (HB 729)

5 Calculation of the Tax Tax Rate standard, buy here pay here, salvage, rental, charitable donation, vehicles titled prior to 1985 Determining Taxable Value New vs. Used Deductions trade in, discounts and rebates Appeals Family Transfers Welcome to Georgia

6 TAVT Calculations Standard Transactions: Vehicle value = 12,000 Trade in value = 0 Amount of TAVT due (value * 6.75%) = $810 Vehicle value = 12,000 Trade in value = 4,000 Amount of TAVT due (value * 6.75%) = $540

7 TAVT Calculations Rental Cars Value of vehicle = 25,000 Trade in value = 0 TAVT due (value * 1.25%) = $ Family/Inheritance Transfer (vehicle in TAVT) Value of vehicle = $10,000 Trade in value = 0 TAVT due (value * 0.50%) = $50.00

8 Exemptions Corrected, replaced or reissued titles Commercial Trucks that are registered under the International Registration Plan (IRP) Military Veterans (disabled, POW, Purple Heart, Medal of Honor) Trailers Other non titled vehicles

9 Collection of the Tax Who pays the tax (Dealer vs. Purchaser) When is the tax paid Where is the tax paid Refunds Administrative/Collection Fee

10 Distribution of the Tax Collection period and date of disbursement Schedule for allocation between state and local governments Formula for allocation among local governments (Who is an eligible local government) Distribution of delinquent payment penalties

11 Distributions You do the math! Amount of TAVT Collected for Month = 100,000 Step 1 True up Ad Valorem Tax Jurisdiction Ad Valorem Tax Collected Month 2012 Ad Valorem Tax Collected Month 2014 True Up Amount County $20,00 $15,000 School $35,000 $26,000 City 1 10,000 $8,000 Total

12 Distributions You do the math! Step 2 Remainder of TAVT split Distribution Entity Percentage Amount Totals 1 st Third School Board 100% 2 nd Third County 75% City 25% 3 rd Third County 60% City 40%

13 Distributions Answers Amount of TAVT Collected for Month = 100,000 Step 1 True up Ad Valorem Tax Jurisdiction Ad Valorem Tax Collected Month 2012 Ad Valorem Tax Collected Month 2014 True Up Amount County $20,00 $15,000 $ 5,000 School $35,000 $26,000 $ 9,000 City 1 10,000 $8,000 $ 2,000 Total $16,000

14 Distributions Answers Step 2 Remainder of TAVT split ($100,000 $16,000 = $84,000) Distribution Entity Percentage Amount 1 st Third School Board 100% $28,000 2 nd Third County 75% $21,000 City 25% $ 7,000 3 rd Third County 60% $16,800 City 40% $11,200

15 Impact on the Local Government Budget Comparing old system (ad valorem and sales tax on vehicles) to new system (trailing ad valorem tax and TAVT) Hold Harmless Provision Impact on Local Option Sales Tax Revenues Legal Use of Revenue Accounting for the tax

16 TAVT Revenue Statistics $1,457,814,356 collected in revenue as of 4/20/2014 Standard Transactions (6.5 or 6.75%) 1,800,657 $1,355,855,792 Opt In transactions 566,384 $14,135,192 Out of State 119,991 $55,419,709

17 Questions?

18 Thank You Clint Mueller, Legislative Director Association County Commissioners of Georgia Vicki Lambert, Director Local Government Services Division and Motor Vehicle Division, Georgia Department of Revenue 50 Hurt Plaza, Suite 1000 Atlanta, Georgia Welcome All Rd., Suite 701 Atlanta, Georgia