SUMMARY:

            This bill would amend Titles 40 and 48 of the O.C.G.A. to provide comprehensive revision of taxation of motor vehicles, to change provisions regarding tax agents, to provide for title and registration fees and the disbursement of such fees, to move vehicles to a separate class of property that would be exempt from ad valorem taxes and sales and use taxes.

REQUIREMENTS:

• The bill would remove the responsibility of collecting sales tax on private, or “casual sales,” of vehicles from the authority of the county tax agent, because there would be no sales tax collected on such purchases..
• The bill would remove sales tax and ad valorem tax from motor vehicles after January 1, 2010.
• In its place, each vehicle would be subject to a title fee of $1500 or 7% of the value of the vehicle, unless it is a salvage vehicle.  That fee would be $20.
• Tag and registration fees would be paid on a five-year basis for $80, or on a ten year basis for $160.
• In the 2010 tax year 50% of the proceeds from the fees would go to the state’s general fund.
• The remaining 50% would go to the county commission which would distribute the proceeds among the various local governments.
• After 2010 the percentage to the state would decrease 1% and the percentage to local governments would increase 1% until the ratio is 45% state, 55% local.
• If the proceeds in dollar amounts to local governments decrease from those received in 2010, then the difference would be subtracted from the funds remitted to the state and distributed to local governments
• Motor vehicles would be classified as a separate and distinct class of tangible property and be exempt from all ad valorem taxation