09 LC 18
8295S
The
House Committee on Ways and Means offers the following substitute to HB
480:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Titles 40 and 48 of the Official Code of Georgia Annotated, relating,
respectively, to motor vehicles and revenue and taxation, so as to provide for
the comprehensive revision of taxation of motor vehicles; to change certain
provisions regarding tag agents; to provide for state and local title fees; to
provide for continuation of tag, revalidation, and registration fees; to provide
for distribution of such state and local title fees; to exclude certain vehicles
from certain fees; to change certain provisions regarding classification of
motor vehicles as a separate class of property for ad valorem tax purposes; to
provide for an additional classification exempt from such taxation; to provide
for an exemption from sales and use taxes only with respect to certain sales or
purchases of certain motor vehicles; to provide for related matters; to provide
for certain reports; to provide for the intent of the General Assembly with
regard to the allocation of certain funds received from such title fees and for
funding the Georgia Trauma Trust Fund; to provide for related matters; to
provide an for effective date; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
40 of the Official Code of Georgia Annotated, relating to motor vehicles, is
amended by revising Code Section 40-2-23, relating to county tax collectors and
county tax commissioners designation as tax agents, as follows:
"40-2-23.
(a)
The tax collectors of the various counties of this state and the tax
commissioners of those counties in which the duties of the tax collector are
performed by a tax commissioner shall be designated as tag agents of the
commissioner for the purpose of accepting applications for the registration of
vehicles. The commissioner is authorized to promulgate rules and regulations
for the purpose of delegating to such tag agents the custodial responsibility
for properly receiving, processing, issuing, and storing motor vehicle titles or
registrations, or both.
(b)
The state revenue commissioner is authorized to further designate each such tag
agent as a sales tax agent for the purpose of collecting sales and use tax with
respect to the casual sale or casual use of a motor vehicle. For purposes of
this Code section, 'casual sale' or 'casual use' means the sale of a motor
vehicle by a person who is not regularly or systematically engaged in making
retail sales of motor vehicles and the first use, consumption, distribution, or
storage for use or consumption of such motor vehicle purchased through a casual
sale. As personal compensation for services rendered to the Department of
Revenue with respect to the collection of such sales and use tax, each such
designated tag agent shall be authorized to retain from such collection a fee of
$200.00 per month. In any month in which an insufficient amount of such tax is
collected to pay such fee, the amount of any such unpaid fee may be deferred
until such month as sufficient collections are made. Such compensation shall be
in addition to any other compensation to which such tax collector or tax
commissioner is entitled.
(c)(b)
The duties and responsibilities of agents of the commissioner designated under
this Code section shall be a part of the official duties and responsibilities of
the county tax collectors and tax commissioners."
SECTION
2.
Said
title is further amended by adding a new Code section to read as
follows:
"40-2-25.1.
(a)(1)
Except as otherwise provided in this subsection, any motor vehicle for which a
title is issued in this state on or after January 1, 2010, shall be exempt from
sales tax to the extent provided under paragraph (87) of Code Section 48-8-3 and
shall not be subject to ad valorem tax as otherwise required under Chapter 5 of
Title 48. Any such motor vehicle shall be titled as otherwise required under
this title but shall be subject to:
(A)
A state title fee in the amount equal to the lesser of $1,000.00 or an amount
equal to 3.5 percent of the value of such vehicle as determined under the
uniform evaluation of all motor vehicles prepared by the state revenue
commissioner under Code Section 48-5-442; and
(B)
A local title fee in the amount equal to the lesser of $1,000.00 or an amount
equal to 3.5 percent of the value of such vehicle as determined under the
uniform evaluation of all motor vehicles prepared by the state revenue
commissioner under Code Section 48-5-442.
(2)
A person or entity acquiring a salvage title pursuant to subsection (b) of Code
Section 40-3-36 shall not be subject to the fee specified in paragraph (1) of
this subsection but shall be subject to a state title fee in the amount of
$10.00 and a local title fee in the amount of $10.00. Upon subsequent transfer
of such motor vehicle, a person or entity shall be subject to the state and
local title fees specified under paragraph (1) of this subsection following the
rebuild or restoration of such motor vehicle.
(3)(A)
Upon the death of an owner of a motor vehicle which has not become subject to
paragraph (1) of this subsection, the surviving spouse of such owner shall be
authorized to transfer title of such motor vehicle and become subject to
paragraph (1) of this subsection. Such transfer shall be subject to state and
local title fees provided for in paragraph (1) of this subsection.
(B)
Upon the death of an owner of a motor vehicle which has become subject to
paragraph (1) of this subsection, the surviving spouse of such owner shall be
authorized to transfer title of such motor vehicle and shall be allowed a
one-time exemption from the title fee upon payment in lieu thereof of a $50.00
administrative fee.
(4)
Any motor vehicle subject to state and local title fees under this subsection
shall continue to be subject to the tag, revalidation decal, and registration
requirements and applicable fees as otherwise provided in this title in the same
manner as motor vehicles which are not subject to state and local title fees
under this subsection.
(5)
Motor vehicles owned by or leased under a long-term lease by or to the state or
any county, consolidated government, municipality, or county or independent
school district in this state shall not be subject to the state and local title
fees provided for under this subsection.
(6)
There shall be a penalty imposed on the transfer of all or any part of the
interest in a business entity which includes one or more motor vehicles as an
asset of such business entity when such transfer is done to evade the payment of
state and local title fees under this subsection. Such penalty shall be in the
amount of $5,000.00 per motor vehicle plus the amount of the state and local
title fees.
(7)
Any owner of any motor vehicle who fails to submit within 30 days of the
purchase of the vehicle or from the date the owner is otherwise required by law
to register such vehicle in this state an application for a first certificate of
title under Code Section 40-3-21 or a certificate of title under Code Section
40-3-32 shall be required to pay a penalty in the amount of 10 percent of the
state and local title fees required under this Code section, plus interest at
the rate of 1.0 percent per month, unless a temporary permit has been issued by
the tax commissioner. Such penalty and interest shall be in addition to the
penalty and fee required under Code Section 40-3-21 or 40-3-32, as applicable.
The amount of such penalty and interest for state title fees shall be deposited
in the general fund of the state. The amount of such penalty and interest for
local title fees shall be allocated and disbursed as required for title fee
proceeds under paragraph (4) of this subsection.
(b)(1)
The amount of proceeds collected by tag agents each month as title fees pursuant
to subsection (a) of this Code section shall be allocated and disbursed as
provided in this subsection.
(2)(A)
For the 2010 tax year, the amount of funds collected by tag agents as title fees
pursuant to this Code section shall be disbursed within 30 days as
follows:
(i)
State title fees and state salvage title fees shall be remitted to the state
revenue commissioner who shall deposit such proceeds in the general fund of the
state; and
(ii)
Local title fees and local salvage title fees shall be designated as local
government funds and shall be disbursed based upon the address of the owner
indicated upon the title to the governing authority of the county. The
governing authority shall then distribute the proceeds as specified in paragraph
(3) of this subsection.
(B)
For the 2011 tax year and in each subsequent tax year, the state title fee
amount shall decrease by .05 of 1 percent, and the local title fee amount shall
increase by .05 of 1 percent until the state title fee equals the lesser of 3.15
percent or $900.00 and the local title fee equals the lesser of 3.85 percent or
$1,100.00.
(3)
The governing authority shall allocate and distribute to itself and to
municipalities, the board of education of the county school district, and the
board of education of any independent school district located in such county the
local title fee as follows:
(A)
An amount equal to one-third of such proceeds shall be distributed to the board
of education of the county school district and the board of education of each
independent school district located in such county in the same manner as
required for any local sales tax for educational purposes levied pursuant to
Part 2 of Article 3 of Chapter 8 of Title 48 currently in effect. If such tax
is not currently in effect, such proceeds shall be distributed to such board or
boards of education in the same manner as if such tax were in
effect;
(B)(i)
Except as otherwise provided in this subparagraph, an amount equal to one-third
of such proceeds shall be distributed to the governing authority of the county
and the governing authority of each qualified municipality located in such
county in the same manner as specified under the distribution certificate for
the joint county and municipal sales and use tax under Article 2 of Chapter 8 of
Title 48 currently in effect.
(ii)
If such tax were never in effect, such proceeds shall be distributed to the
governing authority of the county and the governing authority of each qualified
municipality located in such county on a pro rata basis according to the ratio
of the population that each such municipality bears to the population of the
entire county.
(iii)
If such tax is currently in effect as well as a local option sales and use tax
for educational purposes levied pursuant to a local constitutional amendment, an
amount equal to one-third of such proceeds shall be distributed in the same
manner as required under division (i) of this subparagraph and an amount equal
to one-third of such proceeds shall be distributed to the board of education of
the county school district.
(iv)
If such tax is not currently in effect and a local option sales and use tax for
educational purposes levied pursuant to a local constitutional amendment is
currently in effect, such proceeds shall be distributed to the board of
education of the county school district and the board of education of any
independent school district in the same manner as required under that local
constitutional amendment.
(v)
If such tax is not currently in effect and a homestead option sales and use tax
under Article 2A of Chapter 8 of Title 48 is in effect, such proceeds shall be
distributed to the governing authority of the county, each qualified
municipality, and each existing municipality in the same proportion as otherwise
required under Code Section 48-8-104; and
(C)(i)
An amount equal to one-third of such proceeds shall be distributed to the
governing authority of the county and the governing authority of each qualified
municipality located in such county in the same manner as specified under an
intergovernmental agreement or as otherwise required under the county special
purpose local option sales and use tax under Part 1 of Article 3 of Chapter 8 of
Title 48 currently in effect; provided, however, that this division shall not
apply if division (iii) of this subparagraph is applicable.
(ii)
If such tax were in effect but expired and is not currently in effect, such
proceeds shall be distributed to the governing authority of the county and the
governing authority of each qualified municipality located in such county in the
same manner as if such tax were still in effect according to the
intergovernmental agreement or as otherwise required under the county special
purpose local sales and use tax under Part 1 of Article 3 of Chapter 8 of
Title 48 for the 12 month period commencing at the expiration of such tax. If
such tax is not renewed prior to the expiration of such 12 month period, such
amount shall be distributed in accordance with division (i) of this
subparagraph; provided, however, that if a tax under Article 2 of Chapter 8 of
Title 48 is not in effect, such amount shall be distributed in accordance with
division (ii) of this subparagraph.
(iii)
If such tax is not currently in effect in a county in which a tax is levied for
purposes of a metropolitan area system of public transportation, as authorized
by the amendment to the Constitution set out at Georgia Laws 1964, page 1008;
the continuation of such amendment under Article XI, Section I, Paragraph IV(d)
of the Constitution; and the laws enacted pursuant to such constitutional
amendment, such proceeds shall be distributed to the governing body of the
authority created by local Act to operate such metropolitan area system of
public transportation.
(iv)
If such tax were never in effect, such proceeds shall be distributed in the same
manner as specified under the distribution certificate for the joint county and
municipal sales and use tax under Article 2 of Chapter 8 of Title 48 currently
in effect; provided, however, that if such tax under said Article 2 is not in
effect such proceeds shall be distributed to the governing authority of the
county and the governing authority of each qualified municipality located in
such county on a pro rata basis according to the ratio of the population that
each such municipality bears to the population of the entire
county.
(c)(1)
As soon as practicable after the end of each fiscal year, the Office of Treasury
and Fiscal Services shall report to the General Assembly, the Office of Planning
and Budget, and the Georgia Trauma Care Network Commission the amount of funds
remitted to the state for deposit in the general fund pursuant to this Code
section from state title fees.
(2)
It is the intent of the General Assembly that such funds be allocated as
follows:
(A)
For each fiscal year, an amount equal to 105 percent of the amount of state
sales and use taxes received by the state on the sale of motor vehicles in 2009
shall be used for general appropriations;
(B)
Subject to appropriation, an amount of those funds in excess of the amount
provided in subparagraph (A) of this paragraph, if any, not to exceed the
greater of $150 million or an amount equal to the aggregate of $50.00 for
each title for which a state title fee was collected under subsection (a) of
this Code section in the immediately preceding fiscal year, shall be made
available during the following fiscal year to the Georgia Trauma Trust Fund for
use of the Georgia Trauma Care Network Commission for the purposes set forth in
Code Section 31-11-102; and
(C)
For each fiscal year, all funds in excess of the amounts provided in
subparagraphs (A) and (B) of this paragraph, if any, shall be used for general
appropriations."
SECTION
3.
Title
48 of Official Code of Georgia Annotated, relating to revenue and taxation, is
amended by revising Code Section 48-5-441, relating to classification of motor
vehicles and mobile homes as separate classes of tangible property for ad
valorem tax purposes, as follows:
"48-5-441.
(a)(1)
For the purposes of ad valorem taxation, motor vehicles
are
shall
be classified as a separate and distinct
class of tangible property. Such class of tangible property shall be divided
into two distinct and separate subclasses of tangible property with one subclass
including heavy-duty equipment motor vehicles as defined in Code Section
48-5-505 and the other subclass including all other motor vehicles. The
procedures prescribed by this article for returning motor vehicles, excluding
heavy-duty equipment motor vehicles as defined in Code Section 48-5-505, for
taxation, determining the applicable rates for taxation, and collecting the ad
valorem tax imposed on motor vehicles shall be exclusive.
(2)
This subsection shall not apply to motor vehicles subject to Code Section
48-5-441.1.
(b)
For the purposes of ad valorem taxation, mobile homes
are
shall
be classified as a separate and distinct
class of tangible property. The procedures prescribed by this article for
returning mobile homes for taxation, determining the applicable rates for
taxation, and collecting the ad valorem tax imposed on mobile homes shall be
exclusive.
(c)(1)
For the purposes of ad valorem taxation, commercial vehicles
are
shall
be classified as a separate and distinct
class of tangible property. The procedures prescribed by this article for
returning commercial vehicles for taxation and for determining the valuation of
commercial vehicles shall be exclusive and as provided for in Code Section
48-5-442.1. All other procedures prescribed by this article for the taxation of
motor vehicles shall be applicable to the taxation of commercial
vehicles.
(2)
This subsection shall not apply to motor vehicles subject to Code Section
48-5-441.1."
SECTION
4.
Said
title is further amended by adding a new Code section to read as
follows:
"48-5-441.1.
Motor
vehicles subject to the provisions of Code Section 40-2-25.1 shall be classified
as a separate and district class of tangible property and shall be exempt from
all ad valorem
taxation."
SECTION
5.
Said
title is further amended in Code Section 48-8-3, relating to exemptions from
sales and use tax, by replacing "; or" with a semicolon at the end of paragraph
(85), replacing the period at the end of paragraph (86) with "; or", and by
adding a new paragraph to read as follows:
"(87)
The sale or purchase of any motor vehicle titled in this state on or after
January 1, 2010, pursuant to Code Section
40-2-25.1."
SECTION
6.
This
Act shall become effective on January 1, 2010.
SECTION
7.
All
laws and parts of laws in conflict with this Act are repealed.