This legislation allows the tax commissioner some discretion when valuing a used vehicle that sells for less than the value in the Department of Revenue Assessment Manual. Upon the request of the vehicle owner and supporting documentation, the tax commissioner could consider mileage, condition, the bill of sale and values from a reputable pricing guide to determine a value that more closely reflects the current condition of the vehicle. This discretion may help address the taxpayers concerns with the DOR value and prevent the owner from making an appeal to the Board of Assessors.

 

This legislation changes the way interstate commercial trucks that register under the International Registration Program (IRP) are taxed by the local governments.  Currently they are required to pay a proration of the ad valorem taxes due based upon the percent of total miles driven in Georgia.  Under the new system they will pay a local alternative ad valorem tax based upon a proration of miles driven in Georgia to the Department of Revenue (DOR).  The DOR will then distribute the local revenues back to the counties, schools and cities based upon their pro rata share of total ad valorem taxes collected statewide.  The industry estimates that the new system will increase local revenues from $9 million to just under $17 million per year.  IRP truck owners will also be authorized to pay the local ad valorem taxes due on their trailers to DOR or the county.  Any local trailer taxes collected by DOR will be distributed back to the local governments where the trailers are domiciled.