SUMMARY:

            This bill would amend Titles 40 and 48 of the O.C.G.A. to revise radically the motor vehicle tax in the state.

REQUIREMENTS:

• As of January 1, 2010 no sales tax or ad valorem tax would be applied to motor vehicles.
• Instead, a state title fee equal to $720.00 or 3.36 % of the fair market value of the vehicle would be charged, with determination of value from various sources.
• In addition, a local title fee equal to $780.00 or 3.64% of the fair market value of the vehicle would be charged.
• The tag agent would be allowed to collect a $10.00 title fee for dealers who title a vehicle in a county other than where the vehicle is registered.
• Penalties could be imposed for falsifying fair market value not to exceed $2500.00 for the state and $2500.00 for the locals.
• Salvage title fees would be only $10.00 for the state and $10.00 for the locals.
• Inherited vehicles would have special privileges, as would family title transfers, but they would still be subject to state and local title fees and a one-time fee of $25.00 state and $25.00 local, and an affidavit regarding relationships would be required.
• When someone moves with vehicles into GA, they must register the vehicles here, but they would only have to pay 50% of the state and local title fees at the time of filing and 50% within 12 months.
• No title fees would be due for corrected titles, replacement titles, or titles reissued to the same owner which reflect satisfaction of liens.
• Any vehicles not subject to state and local title fees in the first section would continue to be subject to all applicable fees like other vehicles.
• Vehicles owned by the state or county, consolidated government, municipality, school districts, or other government agencies that are exempt from ad valorem taxes and sales taxes would also be exempt from title fees.
• Other vehicles exempt from sales and ad valorem taxes mentioned in other sections of the law would also be exempt from title fees.
• Any transfer of interest in a business entity that is done to evade the title fees would be subject to the $2500.00 fines at state and local levels.
• If owners of vehicles fail to register them within 30 days, they would be subject to a penalty of 10% of the state and 10% of the local title fees, plus interest of 1.0% per month, unless a temporary permit has been issued by the tax commissioner.
• If owners purchased vehicles after January 1, 2009 and before January 1, 2010, they may opt in to the exemption provisions of this law prior to January 1, 2011, if:
  • The amount of fees that would have been due in 2010 if purchased them were determined;
  • All sales and ad valorem taxes due in 2009 and 2010 were paid;
  • If the total amount due under the new exemption law is greater than the taxes paid, the remainder would have to be paid to the tag agent;
  • If the amount due were less than the total paid, no more payment would be required, but there is not mention of rebate.
• Rental companies with fleets of 50 or less vehicles would pay $100.00 per vehicles to the state and $100.00 to the locals, but only if in the previous year the amount of sales tax attributable to the rental of the vehicles was at least $300.00.
• If a fleet exceeds 50 vehicles, the fee would rise to $140.00 to the state and $210.00 to the locals if the previous year sales tax due to rental was at least $400.00.
• Dealers may remove a vehicle from inventory for a period up to 6 months and be exempt from title fees.  After 6 months, it must be returned to inventory or title fees would apply.
• Fees collected locally in 2010 would be distributed as follows:
  • State fees would be sent to the state within 30 days following the end of each month;
  • Local fees would be distributed based on the address of the owner on the title.
• Fees collected in 2011 and thereafter would be calculated and distributed as follows:
  • The $720 fee would increase by $30 annually and the percentage of fair market value would incr4eas 0.14% annually until the local title fee equaled $900.00 or 4.2% of the fair market value of the vehicle.
  • Proportionate amounts would be distributed to each governmental agency as represented by the amount of ad valorem taxes that would have been due.
  • Any remaining proceeds would be distributed in a convoluted manner, based on whether or not and what kind of sales taxes are currently in effect for county, homestead or education purposes.

NOTE:  Determining the fees due (or not), determining the penalties due (or not), collection and distributing the proceeds would so convoluted that there could be rampant violations, miscalculations, and unfair distribution of funds.