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GEORGIA DEPARTMENT OF REVENUE LOCAL GOVERNMENT SERVICES DIVISION Taxing Topics For Educational Purposes Only: The material within is intended to give the course participant a solid understanding of general principles in the subject area. As such, the material may not necessarily reflect the official procedures and policies of the Georgia Department of Revenue or the Department’s official interpretation of the laws of the State of Georgia. The application of applicability to specific situations of the theories, techniques, and approaches discussed herein must be determined on a case-by-case basis. May 2012 Georgia Department of Revenue TAXING TOPICS Dan Ray Rockdale County Tax Commissioner Mitch Schrader Clarke County Tax Commissioner Ellen Mills and Cheryl Spraggins Department of Revenue 1 Georgia Department of Revenue Constitutional Officers 2012 Election Year • Tax Commissioner – tax receiver – tax collector • Clerk of the Superior Court • Judge of Probate Court • Sheriff 2 1 Georgia Department of Revenue Consolidation of Office GA Constitution Article IX, Section I, Paragraph III. • (c) The General Assembly may consolidate the offices of tax receiver and tax collector into the office of tax commissioner. All 159 counties are consolidated. 3 Georgia Department of Revenue Constitutional Amendments • Chatham County - Tax assessor, chief, vested with functions of tax receiver. Ga. L. 1964, p. 986. 3 • Dougherty County - Tax commissioner abolished, merger of board of tax assessors with county authorized Ga L 1974 p. 1654. departments authorized. Ga. L. 1974, p 1654 • Pike County - Tax returns to board of tax assessors. Ga. L. 1978, p. 2405. 4 2 Georgia Department of Revenue Tax Commissioner Oaths of Office – Tax Receiver 48-5-101 – Tax Collector 48-5-121 – Public Officer 45-3-1 – Loyalty 45-3-11, 45-3-12, and 45-3-13 5 Georgia Department of Revenue Tax Commissioners 48-5-122 Bonds 48 5 122 • State: – 40% of state tax due up to $50,000 – Payable to Governor – Certified by Probate Judge – Copy submitted t R C Commissioner b itt d to Revenue C i i • County: – Up to $100,000 – Filed with county governing authority 6 3 Georgia Department of Revenue 7 Georgia Department of Revenue 8 4 Georgia Department of Revenue Tax Commissioner Training Requirement 48-5-126.1 (Tax Commissioner) 48-5-128.1 and 48-5-212 (Chief Deputy) • 40 hrs of Training – 20 prior to assuming office for first time – 20 during first year of office • 15 hrs of annual update training Subject to removal from office without proper training 9 Georgia Department of Revenue Duties of Tax Collector (40-2-23) Tag Agent and Sales Tax Agent for DOR Tax collectors are designated as tag agents of the Revenue Commissioner for the purpose of vehicle titling and registration. re en e may The state revenue commissioner ma also designate the tag agent as a sales tax agent for the purpose of collecting sales and use tax on casual sales of a motor vehicles. 10 5 Georgia Department of Revenue Tax Commissioner may contract with municipalities 48-5-359.1 • Contract shall specify amount to be paid to CGA. – TC has final approval of contract. • TC allowed to contract for providing service and compensation. may accept compensation Recommended to re-new the contracts yearly or at each new term of office. 11 Georgia Department of Revenue Tax Commissioner Ex Officio may be appointed Ex-Officio Sheriffs 48-5-137 • Written Consent from the Sheriff – Recorded with Probate Judge – Compensation – $349.78/month • Gives TC full power to bring property to tax sale on courthouse steps. • TC may appoint Deputy Ex-Officio Sheriffs 12 6 Georgia Department of Revenue Tax Commissioner authority to waive penalty or interest 48-5-242 • County Governing Authority may pass resolution delegating TC with authority to waive penalty and interest. – Authorization can be limited or complete Covenant Breaches are exempt from waiver of penalty & interest 13 Georgia Department of Revenue Tax Commissioner authority to issue refunds 48-5-303, 48-5-380 • Taxpayer files a written request with CGA • CGA has one year to act on request • Taxpayer can bring claim to Superior Court • Once approved refunds must be p pp paid within 60 days of decision CGA can delegate, by resolution, the authority to refund obvious clerical errors to appropriate departments in local government 14 7 Georgia Department of Revenue Duties of Tax Receiver (48-5-103) • Receive returns in manner provided by law. • Receive returns at any time taxpayer applies. • May designate the Board of Assessors to receive tax returns. • Prepare Taxable and Exempt Digests. • Post notice showing office hours • Conform to rules of Revenue Commissioner • Perform all other duties the law requires. 15 Georgia Department of Revenue Delegation to Board of Assessors 48-5-299.1 • Upon designation by the tax receiver or tax commissioner pursuant to paragraph (5) of Code Section 48-5-103, it shall be the duty of the board of assessors to receive tax returns as provided under paragraph (4) of Code Section 48-5-103 or to perform ll duties f tax i tax i i l ti all d ti of t receivers or t commissioners relating to the receiving of applications for homestead exemptions from ad valorem tax, or both, pursuant to such designation. 16 8 Georgia Department of Revenue • 17 Georgia Department of Revenue Tax Receiver g Returns and Digest Submission April 11 Tax Receiver turns over returns to Assessors. July 1 Assessors correct returns and turns over to TC. August 1 Tax Receiver submits digest to Revenue Commissioner. 18 9 Georgia Department of Revenue Duties of Tax Collector (48-5-127) • Diligently Collect Taxes & Disburse Promptly • Issue Executions • Have insolvent lists allowed in proper manner. • Post & maintain notice showing office hours • Conform to rules of Revenue Commissioner • Keep Voters Book • Perform all other duties that the law requires. 19 Georgia Department of Revenue Tax Collector Billing Required public information on Tax Bill…. – Statement regarding gradual reduction in state ad valorem tax. (48-5-8) – Information regarding homestead and appeals. (48-5-56) – Statement regarding rollback for Local option sales tax. 20 10 Georgia Department of Revenue Tax Collector Billing Tax Bill Due Date…. – Taxpayer must be given 60 days from date of postmark to pay. (48-5-148) – Due date is December 20 – unless different d t set b resolution of CGA date t by l ti f CGA. • Temporary Bills issued: – When property is under appeal; or – When ordered by Superior Court. 21 Georgia Department of Revenue Tax Collector Collection Interest on Late Payments – 1% of Tax per month after Dec 20th. (48-2-40) Penalties become part of the tax.(48-2-42) Types of Penalties – Failure to Return: 10% set by BOARD OF ASSESSORS – Failure to Pay: 10% after 90 days generally – Returned/Bad Check: 1% of amt – Breach of Covenant: varies per covenant set by Assessors – Timber: 50% of tax due 22 11 Georgia Department of Revenue Tax Collector Disbursements of Tax 48-5-141 thru 143 • Disbursements to County: – Population > 30,000 – Weekly – Population < 30,000 – Every 2 Weeks • Disbursement to State – Monthly • Disbursement to Cities – Monthly 23 Georgia Department of Revenue Tax Collector Important Notice Executions As soon as the deadline for the payment of tax has arrived, the tax commissioner must NOTIFY the taxpayer that unless taxes are paid, an execution will be issued. The EXECUTION may then be issued at any time after 30 days has lapsed since issuing the execution notice to the taxpayer Execution means a written order issued to a sheriff, directing him to carry out the process for the collection of ad valorem taxes. 24 12 Georgia Department of Revenue Tax Collector Executions – Special Circumstance Special Circumstances apply when the real property has been sold after January 1st of the taxable year. No execution may be issued against a person who is not the owner of the property on the day that the taxes become delinquent – if that person provided proof within 90 days from the due date, that the liability for the taxes has been assigned to the new owner by written agreement or contract. 25 Georgia Department of Revenue Tax Collector Executions – Special Circumstance In addition, the execution may not be issued against the new owner unless such new owner has been sent a notice of the delinquent tax and intent to issue a tax execution if not paid within 30 days of the date of the ti notice. 26 13 Georgia Department of Revenue Tax Collector Executions – Special Circumstance Whenever technologically feasible, the tax commissioner shall mail tax bills to new owners as shown on records of the BOARD OF ASSESSORS. A new purchaser of property is not required to pay i t t lt til d ft th t interest or penalty until 60 days after the tax commissioner has forwarded a tax bill. This provision only applies to the tax bill applicable to the year in which the property was purchased 27 Georgia Department of Revenue Tax Collector 48-5-19 Transfer of Executions 48 5 19 Whenever a person pays an execution issued for state, county, or municipal taxes or special assessments, the officer whose s e o ce t e e ecut o ay duty is to enforce the execution may transfer the execution to the party paying the full value of the execution. 28 14 Georgia Department of Revenue Tax Collector 48-5-19 Transfer of Executions 48 5 19 The person who purchases the execution: – Shall have the same rights to enforce the execution as TC. – Shall have the same priority of payment – Shall enter the execution on general execution docket of superior court within 30 days. 29 Georgia Department of Revenue Tax Collector 48-5-19 Transfer of Executions 48 5 19 It is unlawful (misdemeanor) for the following officials to pay a tax execution in order to obtain a transfer: – County tax commissioners; – M b f t b d f tax Members of county boards of t assessors; – Members of county boards of equalization; and – County tax appraisers. 30 15 Georgia Department of Revenue Tax Collector 48-5-19 Transfer of Executions 48 5 19 A transferee does not have the right to advertise and sell property on courthouse steps. Such right remains solely with the sheriff. 31 Georgia Department of Revenue Tax Collector 48 5 28 Executions Satisfied 48-5-28 An entry of satisfaction shall be made on the execution docket as soon as reasonably possible after a tax execution has been fully satisfied. 32 16 Georgia Department of Revenue Ex-Officio Sheriff Levy and Tax Sale - Advertisement When a levy is made upon real or personal property, the property shall be advertised and sold. The defendant shall be given ten days' written notice of such sale by registered or certified mail or statutory overnight delivery. Advertisements for sales under tax executions may describe the property by tax parcel identification number and current street address, together with a reference to the recording information for any deed conveying title to such property, without the necessity of using a full and complete description of the property. 33 Georgia Department of Revenue Priority of Tax Liens Li for taxes ranked as follows: Liens f t k d f ll State County School Municipality Fi t Priority and S First P i it d d Secured Lien attaches January 1 48-5-10 Decatur Co Bldg. & Loan v. Thigpen 34 17 Georgia Department of Revenue Ex-Officio Sheriff Levy and Tax Sale – Funds Collected Once the tax commissioner places the execution in the hands of the Sheriff; the Sheriff is authorized to collect and shall proceed promptly to enforce by levy and sale. Once the collection is made or tax sale occurs the Sheriff shall make prompt settlements with the tax commissioner. 35 Georgia Department of Revenue Ex-Officio Sheriff Tax Sale – Purchase by Taxpayer One who is obligated to pay a tax on property cannot strengthen his title by purchasing the property at a tax sale. Each such purchase shall be treated as payment for the tax due. 36 18 Georgia Department of Revenue Ex-Officio Sheriff Tax Sale – County Can Bid on Property The governing authority may purchase REAL PROPERTY offered for sale but only when other bids do not cover the amount of the tax executions and costs. The governing authority may not bid more for the property than the amount of taxes and costs. county. The Taxpayer may REDEEM the property from the county The governing authority is not required to pay the proportionate part of the taxes due the state, school, or other jurisdictions until the real property is redeemed or resold. 37 Georgia Department of Revenue Ex-Officio Sheriff Tax Sale – County Can Bid on Property The governing authority may purchase PERSONAL PROPERTY offered for sale but only when other bids do not cover the amount of the tax executions and costs. The governing authority may not bid more for the property than the amount of taxes and costs. FINAL. The Sale of Personal Property is FINAL No redemption, a bill-of-sale is issued to the county. The governing authority is not required to pay the proportionate part of the taxes due the state, school, or other jurisdictions until the real property is resold. 38 19 Georgia Department of Revenue Ex-Officio Sheriff Tax Sale – TC may not Bid on Property The tax commissioner and his employees may not buy real property sold at tax sale. Except that the tax commissioner or employee may purchase property sold at public auction for delinquent taxes when the tax commissioner or employee has an ownership interest in the property and had an ownership interest in the property at the time the taxes became delinquent. 39 Georgia Department of Revenue Tax Sale – Excess Funds If there are excess funds after paying taxes and expenses of a sale , the sheriff shall give written notice, within 30 days, to the record owner of the property at the time of the tax sale and to the record owner of each security deed affecting the property and to all other parties having any claim in such property at the time of the tax sale. The notice shall contain a description of the land sold, the date sold, the name and address of the tax sale purchaser, the total sale price, and the amount of excess funds. The notice shall state that the excess funds are available for distribution to the owner or owners as their interests appear in the order of priority in which their interests exist. 40 20 Georgia Department of Revenue Tax Sale – Excess Funds The sheriff may file an interpleader action in superior court so that such excess funds may be distributed to various interested persons, including the owner. The cost of litigation of such an interpleader action, including y reasonable attorney's fees, shall be p paid from the excess funds upon order of the court. 41 Georgia Department of Revenue Tax Sale – Excess Funds to DOR After five years has lapsed from the tax sale date, the sheriff holding excess funds shall pay over to the Department of Revenue, any excess unclaimed funds for which no action is pending in Superior Court. Once excess funds are placed in the possession of DOR, only a court order from an interpleader action filed in the county, by the claimant funds funds for the funds, shall serve as justification for release of the funds. 42 21 Georgia Department of Revenue UNCLAIMED PROPERTY includes Excess Funds from Tax Sales Five Year Dormancy Period (has to reach the fifth year by June 30th) Tax Commissioner or Sheriff remits funds along with information on all potential owners Release of Funds requires an ‘Interpleader’ filed with Superior Court 43 Georgia Department of Revenue Unclaimed Property Facts Georgia started receiving unclaimed funds in 1981. DOR averages $97 million a year in total collections. In 2010 we received $119 property million in property. However only $64 million had associated owner information. 44 22 Georgia Department of Revenue Tax Deed Holder Redemption Whenever real property is sold, the ‘defendant in fi. fa.’ (taxpayer) or any person having any interest in or lien upon such property may redeem the property from the sale by the payment of the redemption p price : (1) At any time within 12 months from the date of the sale; and (2) At any time after the sale until the right to redeem is foreclosed. 45 Georgia Department of Revenue Tax Deed Holder Redemption The redemption price shall be the total of: Amount paid at the tax sale (shown on the tax deed); Plus Additional taxes paid by the purchaser after the sale; Plus Special assessments; Plus 20% of the amount for the first year; Plus 10% for each year thereafter. 46 23 Georgia Department of Revenue Tax Deed Holder Redemption When property is redeemed, the effect of the redemption shall be to convey the tax deed interest back to the ‘defendant in fi. fa.’ (Taxpayer), subject to all liens existing at the time of the tax sale. If the redemption has been made by a creditor of the taxpayer, the amount expended by the creditor shall constitute a first lien on the property. When property is redeemed, the Tax Deed Holder (or purchaser at tax sale) shall issue a quitclaim deed to the defendant in fi. fa., (taxpayer) . 47 Georgia Department of Revenue Tax Deed Holder Foreclose the Right of Redemption After 12 months from the date of a tax sale, the Tax Deed Holder may foreclose (forever bar) the right to redeem the property by: (1) Issuing a notice of the foreclosure to: The ‘defendant in fi fa (taxpayer); The t f the t Th occupant of th property; and d All persons having any interest in, or lien on the property; (2) Publishing a notice in the newspaper once a week for four consecutive weeks . 48 24 Georgia Department of Revenue Tax Deed Holder Ripening of Tax Deed A tax deed executed prior to July 1, 1989, shall ripen after seven years from the date of execution of that deed. A tax deed executed on or after July 1, 1989, shall ripen after a period of four years from the execution of that deed. A tax deed executed on or after July 1, 1996, shall ripen after a period of four years from the recordation of that deed. A tax deed which has ripened shall convey an absolute fee simple title to the grantee in the deed. 49 Georgia Department of Revenue Tax Collector Managing Insolvents Insolvent lists shall be allowed only by the county governing authority. Before the county governing authority allows the insolvent list, the sheriff shall take an oath that he has made every effort in his power to collect and that he believes the taxpayers has no property from which the tax can be collected. When insolvent lists are allowed, they shall be entered on the minutes, and the county governing authority shall furnish the tax collector certified copies of the lists. 50 25 Georgia Department of Revenue 51 Georgia Department of Revenue Errors and Releases O.C.G.A. 48 5 154 ” the • O C G A 48-5-154…” th county t governing authority shall have the jurisdiction and power to correct all errors in the digests, to order abatement or cancellation of taxes erroneously assessed, assessed and to make other adjustments in the digests of a similar nature and to reflect the same in the account as stated….” 52 26 Georgia Department of Revenue Errors and Releases • O.C.G.A. 48-5-241 (a) In all cases where a person has been overtaxed or claims for any reason that taxes should be credited o e u ded, t e county governing or refunded, the cou ty go e g authority may hear and determine such application to the extent of the interest of the county in the matter. 53 Georgia Department of Revenue Errors and Releases O.C.G.A. 48 5 380 (a) Each t h ll f d • O C G A 48-5-380 ( ) E h county shall refund to taxpayers any and all taxes…which are determined to have been erroneously or illegally assessed … • (b)…The governing authority shall approve or disapprove disapprove… • …where there is no obvious error, the approval or disapproval of claims may not be delegated by the governing authority… 54 27 Georgia Department of Revenue Correction of Mistakes in Digest 48‐5‐303. Correction of mistakes in digest; notification of correction. 48 5 303 Correction of mistakes in digest; notification of correction (a) The county board of tax assessors shall have authority to correct factual errors in the tax digest when discovered within three years and when such corrections are of benefit to the taxpayer. Such corrections, after approval of the county board of tax assessors, shall be communicated to the taxpayer and notice shall be provided to the tax commissioner. (b) If a tax receiver or tax commissioner makes a mistake in the digest which is not corrected by the county board of tax assessors or county board of equalization, the commissioner, with the sanction of the Governor, shall correct the mistake by making the necessary entries in the digest furnished the commissioner. The commissioner shall notify the county governing authority and the tax collector of the county from which the digest comes of the mistake and correction. 55 Georgia Department of Revenue Department of Revenue 2012 Bulletins and Memos 1. Conservation Use Application policy 2. Gradual phase out of state ¼ mill 3. Assessor Certification 4. Forest Land Fair Market Value Index 5. Bulk Order Continuous Feed forms 6. Digest Submission Changes 7. Announcement Concerning Disabled Veteran Exemption 8. Conservation Use Assessment ‘catch-up’ 56 28 Georgia Department of Revenue 57 Georgia Department of Revenue 48-5-8. Manner and time of making state levy; notice on taxpayer's ad valorem tax bill. 1. beginning on or after January 1, 2011, and prior to January 1, 2012, the levy shall be 0.25 mills. 2. beginning on or after January 1, 2012, and prior to January 1, 2013, the levy shall be 0.2 mills. 3. beginning on or after January 1, 2013, and prior to January 1, 2014, the levy shall be 0.15 mills. 4. beginning on or after January 1, 2014, and prior to January 1, 2015, the levy shall be 0.1 mills. 5. beginning on or after January 1, 2015, and prior to January 1, 2016, the levy shall be 0.05 mills. 6. beginning on or after January 1, 2016, there shall be no levy for state taxation. Tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not be affected by this subsection a d shall continue to be governed by the p o s o s o this Code sec o as it e s ed immediately p o to May 12, and s a co ue o go e ed e provisions of s section existed ed a e y prior o ay , 2010. Each fiscal authority issuing an ad valorem property tax bill shall place a prominent notice on each taxpayer's ad valorem tax bill in substantially the following form: "This gradual reduction and elimination of the state property tax and the reduction in your tax bill this year is the result of property tax relief passed by the Governor and the House of Representatives and the Georgia State Senate." 58 29 Georgia Department of Revenue Gradual Reduction? What if the 2012 tax bill is going UP? O.C.G.A. § 1‐3‐1(b) provides that in interpreting statutes the “ordinary signification shall be applied to all words” except for words of art or words associated with a particular trade or subject matter. O.C.G.A. § 1‐3‐1 (c) provides that “a substantial compliance with any statutory requirement especially on the part of public officers, shall be deemed and held sufficient, and no proceeding shall be declared void for want of such compliance, unless expressly so provided by law.” Because O.C.G.A. § 48‐5‐8 only requires that the language on the property tax bill is “substantially” in the required form the “ordinary signification” would imply there can be some variation, so long as legislative intent is still followed. The main point of the required phrase appears to be that the state portion of the tax bill is going down and that the reason is due to the action of the Governor and the Legislature . The legislative intent seems to speak more to a reduction of the state portion of the ad valorem tax more so than it does to a reduction of the tax overall. Because of that, it seems that the required language could be changed in order to take out the portion about “the reduction in your tax bill this year”, when that language would not make sense if the overall tax bill is going up. Summary: The exact language to be used may be left up to the discretion of the local authorities keeping in mind the spirit and intent of the law and message intended to be conveyed to the taxpayer. 59 Georgia Department of Revenue 60 30 Georgia Department of Revenue 61 Georgia Department of Revenue 62 31 Georgia Department of Revenue 63 Georgia Department of Revenue 64 32 Georgia Department of Revenue 65 Georgia Department of Revenue 66 33 Georgia Department of Revenue 2012 Legislative Update HB48 Level 2 Freeport HB386 Tax Reform HB397 Open Records HB634 Population Bill (Butts, Cobb, Dekalb, and Fulton) HB729 IRC HB851 Distribution of RETT and Intangible HB916 Conservation Use SB284 Land Banks 67 Georgia Department of Revenue HB48 – Level 2 Freeport • Current Freeport is now called LEVEL 1 – Available to Manufacturers and Distributors Category 1 – raw materials & goods in process Category 2 – finished goods held by manufacturer Category 3 – finished goods held by distributor p • New Freeport will be called LEVEL 2 – Available to Retailers (must be approved by voters) Includes inventory not otherwise qualified for LEVEL 1 Issues: Rental equipment currently appraised and depreciated as non- inventory, may be included in Level 2 Freeport. Supplies currently not included in Level 1 Freeport, may qualify for Level 2. 68 34 Georgia Department of Revenue HB386 – Tax Reform (motor vehicle) 40-5-441.1 Motor vehicles subject to 48-5B-1 (Motor Vehicle Title Ad Valorem Tax) shall be classed as a separate class of tangible property for ad valorem purpose. Motor vehicles subject to ‘Title Ad Valorem Tax’ will not be subject to sales tax or annual ad valorem tax. However, the $18 Title Application Fee will still apply and annual tag renewal will still apply. Effective 3/1/2013 69 Georgia Department of Revenue HB386 – Fair Market Value • Fair Market Value means same as 48-5-442 (average of wholesale and retail) – Revenue Commissioner to provide a “MV Valuation Manual” – When vehicle value is not found in Manual: • New vehicle: bill-of-sale minus rebates and before allowance for trade-in value. • Used vehicle: Use greater of bill-of-sale or market guide. • Trade-in Value means value stated in bill-of-sale for a vehicle which has been traded-in to the dealer when purchasing another vehicle from the dealer. 70 35 Georgia Department of Revenue HB386 – Taxable Value Fair Market Value of Vehicle - Trade-in Value (when applicable) = Taxable Value Taxable Value * Tax Rate = Tax Due 71 Georgia Department of Revenue HB386 –Title Tax Rate 2013 – 6.5% x FMV minus trade-in value 2014 – 6.75% x FMV minus trade-in value 2015 – 7% x FMV minus trade-in value In Tax Years 2015, 2018 and 2022, the Revenue Commissioner shall determine the state target collection amount and may adjust the combined state and local rate to no greater than a combined rate of 9%, to become effective the following January 1st. 72 36 Georgia Department of Revenue HB386 – Tax Rate Exceptions (salvage) • Salvage Vehicles: – A person acquiring a salvaged vehicle shall be subject to a Title Tax rate of 1% of Fair Market Value. – The total tax amount is distributed to the State of Georgia. 73 Georgia Department of Revenue HB386 – Tax Rate Exceptions (donated) • Vehicles donated to Non-Profits (501(c)3) when titled in name of non-profit: – Donation must be for purpose of being transferred to another person. Subject t t l hi l f F i Market – S bj t to same rate as salvage vehicles (1% of Fair M k t Value) 74 37 Georgia Department of Revenue HB386 – Tax Rate Exceptions (death) • Death of owner who previously paid regular ad valorem: Heir or beneficiary (immediate family member) may continue to pay Regular Ad Valorem or may elect in writing to pay Title Tax at prevailing tax rate. • Death of owner who previously paid Title Tax: Heir or beneficiary (immediate family member) is subject to pay Title Tax at a state rate of .25% of FMV and a county rate of .25% of FMV. 75 Georgia Department of Revenue HB386 – Tax Rate Exceptions (family) • Transfer of vehicle, on which regular ad valorem was previously paid, to an immediate family member: Immediate family member may continue to pay regular ad valorem or may elect to pay Title Tax at prevailing rate • Transfer of vehicle, on which Title Tax was previously paid, to an immediate family member: Immediate family member is subject to pay Title Tax at a state rate of .25% of FMV plus county rate of .25% of FMV. 76 38 Georgia Department of Revenue HB386 – Tax Rate Exceptions (Rental Company) • Vehicles owned by a Motor Vehicle Rental Company may be taxed at a state rate of .75% of the FMV plus a local rate of .75% of the FMV, only when the average sales and use tax charged on each vehicle was at least $400 in the prior year. • Entity will have to obtain a certification from the Revenue Commissioner. 77 Georgia Department of Revenue HB386 – Due Date Exception (Moving into GA) • Persons moving into GA and who are required to obtain a GA title for a vehicle which was formerly titled in another state: – Subject to pay Title Tax at a state and local rate of 50% of amount otherwise due. – Remainder 50% shall be payable within 12 months. 78 39 Georgia Department of Revenue HB386 – Exemption • Motor Vehicle Ad Valorem Title Tax does not apply to titles issued for the following reasons: – Corrected Titles – Replacement Titles – GA Titles reissued to the same owner. 79 Georgia Department of Revenue HB386 – Exemption • State and local Title Tax does not apply to titles issued on the following vehicles: – Vehicles owned or leased by state, county, school, municipality, or other government entity. 48-5-478 (di bl d t – 48 5 478 (disabled veteran) ) – 48-5-478.1 (former prisoner of war) – 48-5-478.2 (veterans awarded Purple Heart) – 48-5-478.3 (veterans awarded Medal of Honor) 80 40 Georgia Department of Revenue HB386 – Opt in provision • An owner who purchased a vehicle in GA on or after January 1, 2012 and prior to March 1, 2013 may opt-in to the Title Tax at any time prior to January 1, 2014. – Must pay difference of sales tax and ad valorem paid during year of purchase as compared to the 6.5% title tax which would have otherwise been due. 81 Georgia Department of Revenue HB386 – Appeal of FMV • The Fair Market Value of any motor vehicle subject to Motor Vehicle Ad Valorem Title Tax shall be appealable in the same manner as authorized for motor vehicles subject to ad valorem tax. DOR considering motor vehicle appeal regulations to facilitate efficient administration of increased motor vehicle appeals to the county board of assessors. 82 41 Georgia Department of Revenue HB386 – MV Ad Valorem Title Tax Distribution 83 Georgia Department of Revenue HB386 – Tax Reform (income tax) Applicability to Homestead • The personal exemption for married filing joint status for income tax is increased to $7400. – $3700 each when filing ‘married filing separate’ • Disabled persons and persons over age 65 receive a $65,000 ti t income exclusion. $65 000 retirement i l i This will effect the net GA income for income-based homestead exemptions. 84 42 Georgia Department of Revenue HB386 – Tax Reform (income tax) Applicability to Appraisal of Conservation Easement Property • Certain income tax credits are granted to persons who donate qualified property for conservation purposes. – Protect water quality – Protect wildlife – Protect outdoor recreation – Protect forestry – Protect cultural sites 85 Georgia Department of Revenue HB397 – Open Meetings • With regard to open meetings the code revision applies to every county department, agency, board (board of tax assesso s), bu eau, o ce (ta assessors), bureau, office (tax commissioner), commissioner, authority or similar body 86 43 Georgia Department of Revenue HB397 – Open Records • With regard to Open Records this code revision applies to every county department, agency, board, bureau, office, commissioner, authority or similar body – AND – any association or corporation that has a membership composed of counties, municipalities, or school districts. (ACCG, GMA) 87 Georgia Department of Revenue HB397 – Government • Failing or refusing to comply with Open Meetings and Open Records provision may result in the following penalties: – Criminal: fine for first offence up to $1000 – Civil Penalty: fine for first offence up to $1000 Fines up to $2500 for each offence may be imposed for additional violations. 88 44 Georgia Department of Revenue HB634 –Population Bill • Amends population provision in 48-5-24 so that Dekalb County may continue receiving tax payments in two installments and charging a 5% penalty when delinquent. delinquent Without revision: Per 2010 census, Cobb County residents would have qualified for this version of installment billing. 89 Georgia Department of Revenue HB634 –Population Bill • Amends population provision in 48-5-24 so that Fulton County may continue charge certain interest rates according to set schedule. Without revision: Per 2010 census, Gwinnett County residents would have qualified for this billing provision. 90 45 Georgia Department of Revenue HB634 –Population Bill • Amends population provision in 48-5-24 so that Cobb County may continue collect tax on an installment schedule and charge certain interest rates. ce ta te est ates 91 Georgia Department of Revenue HB634 –Population Bill • Amends population provision in 48-5-24 so that Butts County may continue to allow homestead exemption on certain Georgia Power leased lake lot p ope t es o e eased a e ot properties. Without revision: Per 2010 census, Berrien County residents would have qualified for this homestead provision. 92 46 Georgia Department of Revenue HB729 – IRC Bill Amends OCGA 48 34 so that the • A d 48-5-345 h h Revenue Commissioner may assess a penalty for a deficient tax digest only equal to the difference between the amount the state levy would have produced if the y p digest had the proper assessment level. Adjusts the penalty as the state levy is gradually reduced per OCGA 48-5-8 93 Georgia Department of Revenue 94 47 Georgia Department of Revenue HB851 – Intangible and RETT • Removes a provision for 4% commission (instead of 6%) on collection of intangible recording tax and real estate transfer tax in Cobb, Dekalb, Fulton, and Gwinnet counties counties. Now Cobb, Dekalb, Fulton, and Gwinnett Clerks of Court may charge 6% commission for collection. 95 Georgia Department of Revenue HB916 – Conservation Use Amends C • A ti Use Assessment: d Conservation U A t – The residence and its underlying land (up to 2 acres) must be excluded from Covenant – Previously adopted county resolutions for CUVA minimums may be void – Properties under 10 acres must provide written evidence • An IRS Schedule E, F, or form 4835 shall be sufficient proof 96 48 Georgia Department of Revenue HB916 – Conservation Use Amends C • A i Use Assessment i d Conservation U A in the following manner; – The residence and its underlying land (up to 2 acres) must be excluded from Covenant. y p y – Previously adopted county resolutions for CUVA minimums are void. – Properties under 10 acres must provide written evidence and an IRS Schedule E, F, or form 4835 shall be sufficient proof. 97 Georgia Department of Revenue HB916 – Conservation Use • Amends Conservation Use Assessment: – Adds a definition of contiguous property – Allows up to 50 acres of subsequently acquired land to enter an existing covenant. 98 49 Georgia Department of Revenue HB916 - CUVA 99 Georgia Department of Revenue SB284 – Georgia Land Bank Act • Newly created land bank authorities must be governed by Georgia Land Bank Act: • Purpose: – Enable communities to turn abandoned and tax delinquent properties into productive use. 100 50 Georgia Department of Revenue SB284 – Georgia Land Bank Act • Creation: – Any county or city may elect to create a land bank by the adoption of a local law, ordinance or resolution. 101 Georgia Department of Revenue SB284 – Georgia Land Bank Act • Power: – A land bank shall have the power to purchase, lease, hold, and dispose of real or personal property of every kind and character. – A land bank does not have the power of eminent domain. 102 51 Georgia Department of Revenue SB284 – Georgia Land Bank Act • Exemption: – The real property of a land bank and its income and operations are exempt from ALL TAXATION by the state and by any of its political subdivisions, including but not limited p , g to real property held by a land bank as lessor pursuant to long-term lease contracts with community land trusts. 103 Georgia Department of Revenue SB284 – Georgia Land Bank Act • Funding: – Up to 75% of ad valorem tax collected on real property conveyed by a land bank shall be remitted to the land bank for five years. g • Excluding state and school tax • Excluding tax allocation districts. • Excluding bond levies. 104 52 Georgia Department of Revenue SB284 – Georgia Land Bank Act • Delinquent tax: – Whenever real property that is acquired by a land bank is encumbered with certain tax liens, the land bank may, by resolution, discharge and extinguish any and all such g g y liens and claims. 105 Georgia Department of Revenue SB284 – Georgia Land Bank Act • Delinquent tax: – To the extent that a land bank receives payments attributable to liens for real property tax on property acquired by the land bank, the land bank shall remit the full amount to the tax commissioner. 106 53 Georgia Department of Revenue SB284 – Georgia Land Bank Act • Executions: – A tax commissioner may assign, transfer, or sell to a land bank any ad valorem tax executions issued against any property within the land bank’s jurisdiction. 107 Georgia Department of Revenue SB284 – Georgia Land Bank Act Non-judicial l • N j di i l tax sale: – In a non-judicial tax sale where the tax commissioner or land bank is the holder of the execution, the land bank may bid in an amount equal to the total amount of all tax liens plus i t li t lt d t l interest, penalty, and costs. 108 54 Georgia Department of Revenue Forest Land Assistance Grant 109 Georgia Department of Revenue Tax Bills Bills will be based on forestland conservation use value: Fair Market Value Assessment (“J”) – SJ Exemption = Taxable Assessed Value * Mill Rate = Tax 110 55 Georgia Department of Revenue Without FLPA Exemption 111 Georgia Department of Revenue With FLPA Exemption 112 56 Georgia Department of Revenue Reimbursement 48-5A-3(c)(1)(A) Immediately following the actual preparation of ad valorem property tax bills, each county fiscal authority shall notify the department of the amount of the reduction pursuant to the implementation of Article VII, Section I, Paragraph III(f) of the Constitution 113 Georgia Department of Revenue The FLPA Reimbursement Grant county… If the forest land conservation use property is located in a county where forest land conservation use value causes an ad valorem tax REVENUE REDUCTION of 3 percent or less due to the implementation of this subparagraph, …, the assistance grants to the county… shall be in an amount equal to 50 percent of the amount of such reduction. If the forest land conservation use property is located in a county, … where forest land conservation use value causes an ad valorem tax REVENUE REDUCTION of more than 3 percent due to the implementation of this subparagraph, …, the assistance grants to the county … shall be as follows: For the first 3 percent of such reduction amount, in an amount equal to 50 percent of the amount … For the remainder of such reduction amount, in an amount equal to 100 percent of the amount … 114 57 Georgia Department of Revenue Reimbursement only applies to certain levies: 48-5A-1……. means the net ad valorem tax millage rate, after deducting applicable rollbacks…., including any millage levied for those special districts reported on the 2004 ad valorem tax digest certified to and received by the commissioner on or before December 31, 2004, but not including any millage levied for purposes of bonded indebtedness …. 115 Georgia Department of Revenue PT-32.1A Worksheet 116 58 Georgia Department of Revenue 117 Georgia Department of Revenue PT-77 must be accompanied by: 1. PT-32.1A FLPA Revenue Reduction Calculation Worksheets 2. PT-35 & PT-38 Millage Rate Certification form 3. PT-77A Adjustments from prior years, if applicable 118 59 Georgia Department of Revenue DOR sends assistance grant to County Tax Commissioner 119 Georgia Department of Revenue 120 60 Georgia Department of Revenue 121 Georgia Department of Revenue 122 61 Georgia Department of Revenue FLPA Audits 123 Georgia Department of Revenue Ad Valorem Tax Digest History 124 62 Georgia Department of Revenue Net State Digest Values Residential R id ti l Commercial C i l 200,000,000,000 100,000,000,000 190,000,000,000 80,000,000,000 180,000,000,000 60,000,000,000 170,000,000,000 40,000,000,000 160,000,000,000 150,000,000,000 20,000,000,000 140,000,000,000 - 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 Mobile Home Industrial 1,600,000,000 20,000,000,000 1,400,000,000 19,500,000,000 1,200,000,000 19,000,000,000 1,000,000,000 18,500,000,000 800,000,000 18,000,000,000 600,000,000 400,000,000 17,500,000,000 200,000,000 17,000,000,000 - 16,500,000,000 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 125 Georgia Department of Revenue Net State Digest Values Agricultural Timber 10,000,000,000 700,000,000 8,000,000,000 600,000,000 500,000,000 6,000,000,000 400,000,000 4,000,000,000 300,000,000 200,000,000 2,000,000,000 100,000,000 - - 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 Conservation use C ti Forest Land 3,000,000,000 600000000 2,500,000,000 500000000 2,000,000,000 400000000 1,500,000,000 300000000 1,000,000,000 200000000 500,000,000 100000000 - 0 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 126 63 Georgia Department of Revenue Total Digest Net Value 400,000,000,000 350,000,000,000 300,000,000,000 300 000 000 000 250,000,000,000 200,000,000,000 150,000,000,000 100,000,000,000 50,000,000,000 - 2005 2006 2007 2008 2009 2010 2011 Average Overall Millage 28.5 28 27.5 27 26.5 26 2005 2006 2007 2008 2009 2010 2011 127 Georgia Department of Revenue Ad Valorem Taxation Avg Net Digest x A O A N t Di ll Millage t Avg Overall Mill 10,000,000,000 9,500,000,000 9,000,000,000 8,500,000,000 8,000,000,000 7,500,000,000 7,000,000,000 2005 2006 2007 2008 2009 2010 2011 128 64
"Taxing Topics - Georgia Department of Revenue"