08 LC 38
0662
House
Bill 1433
By:
Representatives Porter of the
143rd,
Smyre of the
132nd,
Crawford of the
16th,
Ashe of the
56th,
Randall of the
138th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 48 of the Official Code of Georgia Annotated, relating to revenue
and taxation, so as to provide for the phasing out of ad valorem property taxes
on motor vehicles over a certain period of time; to provide for relief grants to
counties, municipalities, and school districts regarding taxation on certain
motor vehicles; to provide for definitions; to provide for procedures regarding
the implementation of such relief grants; to provide for qualifications and
limitations; to provide for authorities and duties; to provide for certain
powers of the state revenue commissioner; to provide for related matters; to
provide for an effective date; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
This
Act shall be known as the "Motor Vehicle Tax Relief Act of 2008."
SECTION
2.
Title
48 of the Official Code of Georgia Annotated, relating to revenue and taxation,
is amended by adding a new chapter to read as follows:
"CHAPTER
5A
48-5A-1.
The
General Assembly finds that:
(1)
During difficult economic times it is the duty of the state to provide relief to
its citizens whenever possible;
(2)
The motor vehicle is the most common tangible property asset among the citizens
of Georgia as well as the one of the most costly; and
(3)
Granting tax relief to Georgia citizens from the motor vehicle ad valorem tax is
a quick and efficient method towards economically helping virtually every
household in Georgia.
48-5A-2.
As
used in this chapter, the term:
(1)
'County millage rate' means the net ad valorem tax millage rate levied by a
county for county purposes and applying to motor vehicles in such county,
including any millage levied for special districts reported to and received by
the state revenue commissioner but shall not mean any millage levied for
purposes of bonded indebtedness or any millage levied on behalf of a school
district for the purposes of education.
(2)
'Education millage rate' means the net ad valorem tax millage rate levied for
the purposes of education on behalf of a school district and that is applied to
motor vehicles in such school district but does not mean any millage levied for
purposes of bonded indebtedness or any millage levied for county or municipal
purposes.
(3)
'Motor vehicle' means a motor vehicle owned by a natural person and used
primarily for personal use.
(4)
'Municipal millage rate' means the net ad valorem tax millage rate levied by a
municipality for municipal purposes and applying to motor vehicles in such
municipality but shall not mean millage levied for purposes of bonded
indebtedness or any millage levied on behalf of a school district for the
purposes of education.
(5)
'Qualified assessment' means the assessed value of each motor vehicle in the
state based on the uniform valuation of motor vehicles prepared by the
commissioner pursuant to Code Section 48-5-442. The General Assembly shall
include in each year´s General Appropriations Act the total of qualified
assessments for any given year.
(6)
'State millage rate' means the state millage levy.
(7)
'Tax authority' means the person authorized by a county, municipality, or school
district that levies ad valorem taxes to collect taxes on behalf of such county,
municipality, or school district.
48-5A-3.
Pursuant
to Article III, Section IX, Paragraph II(b) and Article VII, Section III,
Paragraph III of the Constitution, the General Assembly shall, on an annual
basis, appropriate funds to counties, municipalities, and school districts for
grants relating to the qualified assessments of motor vehicles.
48-5A-4.
(a)
The General Assembly shall annually appropriate to the Department of Revenue
funds to provide grants based on the qualified assessments of motor vehicles to
counties, municipalities, and school districts. The General Assembly shall
appropriate a specific amount and the qualified assessment of each motor vehicle
in the state for the specified tax year as follows:
(1)
For the period beginning July 1, 2009, and ending June 30, 2010, a qualified
assessment of $3,000.00 or fair market value of $7,500.00;
(2)
For the period beginning July 1, 2010, and ending June 30, 2011, a qualified
assessment of $6,000.00 or fair market value of $15,000.00;
(3)
For the period beginning July 1, 2011, and ending June 30, 2012, a qualified
assessment of $9,000.00 or fair market value of $22,500.00;
(4)
For the period beginning July 1, 2012, and ending June 30, 2013, a qualified
assessment of $12,000.00 or fair market value of $30,000.00; and
(5)
For each subsequent 12 month period thereafter, the full assessed value of each
motor vehicle.
(b)
The General Assembly shall be authorized to adjust the amount of funds
appropriated in the General Appropriations Act, provided that the funds
appropriated in such Act are inadequate to fund the amount of qualified
assessments provided for in the Act. Any adjustments of the General
Appropriations Act pursuant to this Code section shall be made by amendment to
such Act. If the General Assembly does not amend the General Appropriations Act
for the purposes of adjusting the qualified assessment amount, there shall be a
reduction of the qualified assessment value in an amount equal to the
deficiency.
48-5A-5.
(a)(1)
Grants based on the qualified assessments of motor vehicles shall be provided to
each county, municipality, and school district in the state as
follows:
(A)
Subsequent to preparing municipal property tax bills, each municipal tax
authority shall determine the total amount which would have been generated if
the municipal millage rates applied to the qualified assessment of each motor
vehicle taxable in the municipality. The total of tax credits given to each
motor vehicle in the municipality after such calculation shall be the amount of
the grant that the Department of Revenue shall issue to the
municipality;
(B)
Subsequent to preparing the county property tax bills, each county tax authority
shall determine the total amount which would have been generated if the state
and the county millage rates were applied to the qualified assessment of each
motor vehicle taxable in the county. The total of tax credits given to each
motor vehicle in the county after such calculation shall be the amount of the
grant that the Department of Revenue shall issue to the county; and
(C)
Subsequent to preparing the school district tax bills, each school district tax
authority shall determine the total amount which would have been generated if
the education millage rate was applied to the qualified assessment of each motor
vehicle taxable in the school district. The total of tax credits given to each
motor vehicle in the school district after such calculation shall be the amount
of the grant that the Department of Revenue shall issue to the school
district.
(2)
Credit amounts computed under paragraph (1) of this subsection shall be applied
to reduce dollar for dollar the otherwise applicable tax liability, but the
credit granted shall not in any case exceed the amount of the otherwise
applicable tax liability.
(b)
The tax authority calculating a tax credit pursuant to this Code section shall
provide an ad valorem tax receipt communicating to the motor vehicle owner
receiving the credit:
(1)
The total amount that his or her tax bill was reduced; and
(2)
Notice that such tax credit was a result of tax relief for motor vehicles
enacted by the Governor and the General Assembly.
48-5A-6
(a)
A municipality shall not be entitled to receive a grant pursuant to subparagraph
(a)(1)(A) of Code Section 48-5A-5 if such municipal tax authority does not
reduce from the municipal millage for each owner of a motor vehicle the
otherwise applicable tax liability for such motor vehicle.
(b)
A county shall not be entitled to receive a grant pursuant to subparagraph
(a)(1)(B) of Code Section 48-5A-5 if such county tax authority does not reduce
from the county millage for each owner of a motor vehicle the otherwise
applicable tax liability for such motor vehicle.
(c)
A school district shall not be entitled to receive a grant pursuant to
subparagraph (a)(1)(C) of Code Section 48-5A-5 if such school district tax
authority does not reduce from the education millage for each owner of a motor
vehicle the otherwise applicable tax liability for such motor
vehicle.
48-5A-7.
If
subsequent to applying tax credits pursuant to Code Section 48-5A-5 and
receiving funds from the Department of Revenue grants for such credits the
county, municipality, or school district determines that there is an excess of
funds remaining from such grants, such county, municipality, or school district
shall return the excess funds to the department.
48-5A-8.
The
state revenue commissioner shall be authorized to adopt rules and regulations
for the purposes of implementing this chapter. Such commissioner shall also be
authorized to provide specific instructions to local governments for the
purposes of furthering the purposes of this chapter. Such commissioner may
adopt procedures for the partial or installment distribution of grants when he
or she determines that a full distribution shall only result in the return of
funds pursuant to Code Section 48-5A-6.
48-5A-9.
The
tax authority providing a grant pursuant to this chapter shall be authorized to
recover any credit given erroneously or illegally. Any credit recovered
pursuant to this Code section shall be done in the same manner as any other
delinquent tax."
SECTION
2.
This
Act shall become effective on January 1, 2009.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.