SUMMARY:

This bill provides for the comprehensive revision of the distribution of state and local TAVT proceeds.

• During a four-year phase in period, local governments (school districts, counties, cities) first receive proceeds based upon the 2012 tax year ad valorem collections minus the amount of ad valorem tax collected in the current month.
• During that phase-in period, the remaining amount is split between the state and local governments on a graduated scale that shifts more money to the local governments.
• Following the phase in period, all vehicle ad valorem taxes and TAVT proceeds are split 30 percent to the state and 70 percent to local government.
• During the phase in period, the distribution of local TAVT proceeds among counties, schools, and cities remains the same as at present.
• Beginning in 2022, a new method commences. Under the substitute version of this bill in subcommittee, for vehicles registered in the unincorporated area, the proceeds are split 51/49 between the county and the school board. For vehicle registered in an incorporated area, the proceeds are split as follows: 28 percent to the county; 23 percent to the cities; and 49 percent to the applicable county or city school board. 

EFFECTIVE DATE:

January 1, 2018