HB 1324 - Ad valorem tax; certain heavy- duty vehicles; provisions

First Reader Summary

A BILL to amend Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to ad valorem taxation or property, so as to provide that motor vehicles shall be divided into two distinct and separate subclasses of tangible property for purposes of ad valorem taxation with one subclass including heavy-duty equipment motor vehicles; and for other purposes.

Page Numbers - 1/ 2/ 3/ 4/ 5/ 6

Code Sections - 48-5-505/ 48-5-506/ 48-5-507/ 48-5-508/ 48-5-509

HB 1324                                           LC 18 8589T 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Chapter 5 of Title 48 of the Official Code of 
  1- 2  Georgia Annotated, relating to ad valorem taxation of 
  1- 3  property, so as to provide that motor vehicles shall be 
  1- 4  divided into two distinct and separate subclasses of 
  1- 5  tangible property for purposes of ad valorem taxation with 
  1- 6  one subclass including heavy-duty equipment motor vehicles; 
  1- 7  to define certain terms; to change the method of evaluation 
  1- 8  of heavy-duty equipment motor vehicles for ad valorem tax 
  1- 9  purposes; to change the time at which ad valorem taxes on 
  1-10  certain heavy-duty equipment motor vehicles become due and 
  1-11  payable; to change the provisions relating to ad valorem 
  1-12  taxation of certain heavy-duty equipment motor vehicles 
  1-13  owned and held by heavy-duty equipment motor vehicle dealers 
  1-14  for retail sale; to provide for returns for taxation with 
  1-15  respect to certain heavy-duty equipment motor vehicles 
  1-16  purchased; to provide for the valuation of certain 
  1-17  heavy-duty equipment motor vehicles and for the calculation 
  1-18  of the ad valorem tax on certain heavy-duty equipment motor 
  1-19  vehicles in the year in which such vehicles are purchased 
  1-20  from a dealer; to provide for the collection of certain ad 
  1-21  valorem taxes on heavy-duty equipment motor vehicles by 
  1-22  dealers; to provide for penalties and interest; to provide 
  1-23  for returning and remitting ad valorem taxes to the 
  1-24  appropriate tax officials; to provide that dealers shall be 
  1-25  liable for certain taxes; to provide for dealers who cease 
  1-26  to operate as a business; to require heavy-duty equipment 
  1-27  motor vehicle dealers to provide certain information to the 
  1-28  tax commissioner of the county where the purchaser of such a 
  1-29  motor vehicle is domiciled; to provide for rules and 
  1-30  regulations; to provide for affidavits of illegality 
  1-31  contesting the assessment of ad valorem tax against 
  1-32  heavy-duty equipment motor vehicles; to provide for bonds; 
  1-33  to provide for trials in superior court; to provide for 
  1-34  appeals; to provide for related matters; to provide an 
  1-35  effective date; to repeal conflicting laws; and for other 
  1-36  purposes. 
 
 
 
 
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  2- 1       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  2- 2                           SECTION 1. 
 
  2- 3  Chapter 5 of Title 48 of the Official Code of Georgia 
  2- 4  Annotated, relating to ad valorem taxation of property, is 
  2- 5  amended by striking in its entirety subsection (a) of Code 
  2- 6  Section 48-5-441, relating to classification of motor 
  2- 7  vehicles and mobile homes as separate classes of tangible 
  2- 8  property for ad valorem taxation purposes, and inserting in 
  2- 9  lieu thereof a new subsection (a) to read as follows: 
 
  2-10    "(a) For the purposes of ad valorem taxation, motor 
  2-11    vehicles are classified as a separate and distinct class 
  2-12    of tangible property.  Such class of tangible property 
  2-13    shall be divided into two distinct and separate subclasses 
  2-14    of tangible property with one subclass including 
  2-15    heavy-duty equipment motor vehicles as defined in Code 
  2-16    Section 48-5-505 and the other subclass including all 
  2-17    other motor vehicles.  The procedures prescribed by this 
  2-18    article for returning motor vehicles, excluding heavy-duty 
  2-19    equipment motor vehicles as defined in Code Section 
  2-20    48-5-505, for taxation, determining the applicable rates 
  2-21    for taxation, and collecting the ad valorem tax imposed on 
  2-22    motor vehicles shall be exclusive." 
 
  2-23                           SECTION 2. 
 
  2-24  Said chapter is further amended by adding between Articles 
  2-25  10 and 11 a new Article 10A to read as follows: 
 
  2-26                          "ARTICLE 10A 
 
  2-27    48-5-505. 
 
  2-28    As used in this article, the term: 
 
  2-29      (1) 'Dealer' means any person who is engaged in the 
  2-30      business of selling heavy-duty equipment motor vehicles 
  2-31      at retail and who holds a valid current dealer's resale 
  2-32      tax exemption number. 
 
  2-33      (2) 'Heavy-duty equipment motor vehicle' means a motor 
  2-34      vehicle with all its attachments and parts which is 
  2-35      self-propelled, weighs 5,000 pounds or more, and is 
  2-36      primarily designed and used for construction, 
  2-37      industrial, maritime, or mining uses, provided that such 
  2-38      motor vehicles are not required to be registered and 
  2-39      have a license plate. 
 
 
 
 
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  3- 1    48-5-506. 
 
  3- 2    (a) The provisions of this article shall apply only to 
  3- 3    heavy-duty equipment motor vehicles and dealers as defined 
  3- 4    in Code Section 48-5-505. 
 
  3- 5    (b) The provisions of Part 2 of Article 10 of this chapter 
  3- 6    shall apply to all other heavy-duty equipment motor 
  3- 7    vehicles and dealers not provided for in subsection (a) of 
  3- 8    this Code section. 
 
  3- 9    48-5-507. 
 
  3-10    (a) Except as provided in subsections (b) and (c) of this 
  3-11    Code section, every heavy-duty equipment motor vehicle 
  3-12    owned in this state by a natural person or other entity is 
  3-13    subject to ad valorem taxation by the various tax 
  3-14    jurisdictions authorized to impose an ad valorem tax on 
  3-15    property only if owned by such natural person or entity on 
  3-16    the first day of January of any taxable year. Taxes shall 
  3-17    be charged against the owner of the property, if known, 
  3-18    and, if unknown, against the specific property itself. 
  3-19    The owner shall return the heavy-duty equipment motor 
  3-20    vehicle for taxation as provided in Article 1 of this 
  3-21    chapter. 
 
  3-22      (b)(1) Any and all purchases of heavy-duty equipment 
  3-23      motor vehicles by dealers for the purpose of resale 
  3-24      shall be exempt from ad valorem tax at the time of the 
  3-25      purchase by the dealer. 
 
  3-26      (2) Any person or entity which purchases a heavy-duty 
  3-27      equipment motor vehicle from a dealer shall, for the 
  3-28      taxable year in which the heavy-duty equipment motor 
  3-29      vehicle is purchased only, return such heavy-duty 
  3-30      equipment motor vehicle for ad valorem taxation purposes 
  3-31      to the appropriate county and shall pay a tax for such 
  3-32      taxable year equal to 33 1/3 percent of the amount 
  3-33      derived by multiplying the amount of ad valorem tax 
  3-34      which would otherwise be due on the heavy-duty equipment 
  3-35      motor vehicle based on the selling price to the end user 
  3-36      times 40 percent, thus deriving the taxable assessment, 
  3-37      times the tax rate imposed by the tax authority for the 
  3-38      preceding tax year, by a fraction the numerator of which 
  3-39      is the number of months remaining in the calendar year 
  3-40      not counting the month of purchase and the denominator 
  3-41      of which is 12.  In no event shall the ad valorem tax 
  3-42      due be less than $100.00 for the year of purchase.  The 
  3-43      taxes levied under this subsection shall be due 60 days 
 
 
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  4- 1      after the billing therefor. A penalty of 10 percent of 
  4- 2      the ad valorem tax due and interest at the rate provided 
  4- 3      for in Code Section 48-2-40 shall accrue at the 
  4- 4      expiration of 60 days after billing. 
 
  4- 5      (3) Any ad valorem tax due shall be based on the selling 
  4- 6      price of the heavy-duty equipment motor vehicle 
  4- 7      purchased. 
 
  4- 8      (4) In the event that any heavy-duty equipment motor 
  4- 9      vehicle is purchased other than for resale by a person 
  4-10      or entity not domiciled in this state, at the time of 
  4-11      the sale the dealer shall collect the ad valorem tax 
  4-12      which would be applicable for the county where the 
  4-13      heavy-duty equipment motor vehicle was held in inventory 
  4-14      at the time of the sale.  Each dealer, on or before the 
  4-15      last day of the month following a sale to such person or 
  4-16      entity, shall transmit returns and remit the ad valorem 
  4-17      taxes collected to the tax collector of the county where 
  4-18      the heavy-duty equipment motor vehicle was held in 
  4-19      inventory at the time of the sale.  Such returns shall 
  4-20      show all sales and purchases taxable under this article 
  4-21      during the preceding calendar month.  The returns 
  4-22      required by this subsection shall be made upon forms 
  4-23      prescribed, prepared, and furnished by the commissioner. 
  4-24      If any dealer liable for any tax, interest, or penalty 
  4-25      imposed by this article sells out his or her business's 
  4-26      heavy-duty equipment motor vehicles or quits the 
  4-27      business, he or she shall make a final return and 
  4-28      payment within 30 days after the date of selling or 
  4-29      quitting the business.  Any dealer who does not collect 
  4-30      tax as required under this paragraph or who fails to 
  4-31      properly remit taxes collected under this paragraph 
  4-32      shall be liable for the tax and the tax collector or tax 
  4-33      commissioner shall collect such tax, penalty, and 
  4-34      interest in the same manner that other taxes are 
  4-35      collected. 
 
  4-36    (c) Except as otherwise provided in this subsection, 
  4-37    heavy-duty equipment motor vehicles which are owned by a 
  4-38    dealer are not included within the distinct 
  4-39    subclassification of tangible property made by this 
  4-40    article for all other heavy-duty equipment motor vehicles. 
  4-41    The procedures prescribed in this article for returning 
  4-42    heavy-duty equipment motor vehicles for ad valorem 
  4-43    taxation, determining the applicable rates for taxation, 
  4-44    and collecting the ad valorem taxes imposed on heavy-duty 
 
 
 
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  5- 1    equipment motor vehicles do not apply to heavy-duty 
  5- 2    equipment motor vehicles which are owned by a dealer. 
  5- 3    Heavy-duty equipment motor vehicles which are owned by a 
  5- 4    dealer shall not be returned for ad valorem taxation, 
  5- 5    shall not be taxed, and no taxes shall be collected on 
  5- 6    such heavy-duty equipment motor vehicles until they become 
  5- 7    subject to taxation as provided in subsections (a) and (b) 
  5- 8    of this Code section.  No heavy-duty equipment motor 
  5- 9    vehicle held by a dealer in inventory for resale shall be 
  5-10    subject to ad valorem taxation unless such heavy-duty 
  5-11    equipment motor vehicle was in the dealer's inventory on 
  5-12    January 1 of the taxable year and continued to remain in 
  5-13    such dealer's inventory on December 20 of such taxable 
  5-14    year, in which case the dealer shall be required to return 
  5-15    the heavy-duty equipment motor vehicle for ad valorem 
  5-16    taxation and pay the ad valorem tax on such vehicle for 
  5-17    that taxable year.  The assessed value of each heavy-duty 
  5-18    equipment motor vehicle owned by a dealer shall be 40 
  5-19    percent of the fair market value of the heavy-duty 
  5-20    equipment motor vehicle on January 1 of that year.  The 
  5-21    taxes levied under this subsection shall be due 60 days 
  5-22    after the billing therefor.  Penalties and interest for 
  5-23    unpaid taxes as provided in this chapter shall accrue at 
  5-24    the expiration of 60 days after the billing therefor. 
 
  5-25    (d) Within 30 days of the last day of a month during which 
  5-26    there is a sale of any heavy-duty equipment motor vehicle 
  5-27    other than for resale, the dealer shall mail to the tax 
  5-28    assessor of the county where the purchaser is domiciled a 
  5-29    statement upon forms prescribed, prepared, and furnished 
  5-30    by the commissioner notifying the local tax assessor of 
  5-31    the sale which shall include information such as the date 
  5-32    of the sale, the selling price, and the name and address 
  5-33    of the purchaser.  The tax assessor would then be 
  5-34    authorized to place the heavy-duty equipment motor vehicle 
  5-35    on the tax digest of the county and invoice the purchaser 
  5-36    for the applicable ad valorem tax for the current year as 
  5-37    provided for in this Code section. 
 
  5-38    48-5-508. 
 
  5-39    Any taxpayer who contests the assessment of an ad valorem 
  5-40    tax against a heavy-duty equipment motor vehicle as 
  5-41    defined in this article may file with the tax collector or 
  5-42    tax commissioner an affidavit of illegality to the 
  5-43    assessment together with a surety bond issued by a surety 
  5-44    company authorized to do business in this state or, in 
 
 
 
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  6- 1    lieu of such bond, a bond approved by the clerk of the 
  6- 2    superior court of the county or a cash bond.  The bond 
  6- 3    shall be made payable to the tax collector or tax 
  6- 4    commissioner and shall be conditioned upon the payment of 
  6- 5    taxes and penalties ultimately found to be due.  The 
  6- 6    affidavit of illegality and the bond shall be transferred 
  6- 7    immediately by the tax collector or tax commissioner to 
  6- 8    the superior court, shall be filed in the superior court, 
  6- 9    and shall be tried as affidavits of illegality are tried 
  6-10    in tax cases.  Any taxpayer who contests the value 
  6-11    assessment of a heavy-duty equipment motor vehicle as 
  6-12    defined in this article may appeal such assessed value as 
  6-13    provided for in Code Section 48-5-311, insofar as 
  6-14    applicable. 
 
  6-15    48-5-509. 
 
  6-16    The commissioner shall be authorized to promulgate rules 
  6-17    and regulations to facilitate and ensure compliance with 
  6-18    the provisions of this article." 
 
  6-19                           SECTION 3. 
 
  6-20  This Act shall become effective on January 1, 1999. 
 
  6-21                           SECTION 4. 
 
  6-22  All laws and parts of laws in conflict with this Act are 
  6-23  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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