Post on 23-Jan-2021
TAVT – Title Ad Valorem Tax 101
Speakers
Clint Mueller, Legislative DirectorAssociation County
Commissioners of Georgia
50 Hurt Plaza, Suite 1000Atlanta, Georgia 30303
404.522.5022cmueller@accg.org
Vicki Lambert, Director Local Government Services Division and Motor Vehicle
Division, Georgia Department of Revenue
4125 Welcome All Rd., Suite 701Atlanta, Georgia 30349
404.724.7000Vicki.Lambert@DOR.GA.GOV
Learning ObjectivesAt 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
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)
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
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
TAVT Calculations
• Rental Cars– Value of vehicle = 25,000
• Trade in value = 0– TAVT due (value * 1.25%) = $312.50
• Family/Inheritance Transfer (vehicle in TAVT)– Value of vehicle = $10,000
• Trade in value = 0– TAVT due (value * 0.50%) = $50.00
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
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
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
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
Distributions – You do the math!
• Step 2 – Remainder of TAVT split
Distribution Entity Percentage Amount Totals
1st Third School Board 100%
2nd Third County 75%
City 25%
3rd Third County 60%
City 40%
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
Distributions – Answers
• Step 2 – Remainder of TAVT split ($100,000 ‐ $16,000 = $84,000)
Distribution Entity Percentage Amount
1st Third School Board 100% $28,000
2nd Third County 75% $21,000
City 25% $ 7,000
3rd Third County 60% $16,800
City 40% $11,200
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
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
Questions?
Thank You
Clint Mueller, Legislative DirectorAssociation County
Commissioners of Georgia
50 Hurt Plaza, Suite 1000Atlanta, Georgia 30303
404.522.5022cmueller@accg.org
Vicki Lambert, Director Local Government Services Division and Motor Vehicle
Division, Georgia Department of Revenue
4125 Welcome All Rd., Suite 701Atlanta, Georgia 30349
404.724.7000Vicki.Lambert@DOR.GA.GOV