Presentation on theme: "Georgia Department of Revenue CAVEAT 2010 MAV For Personal Property Expanded Freeport / Inventory Elimination Of Ad Valorem Tax On Business Inventory Heavy."— Presentation transcript:
Georgia Department of Revenue CAVEAT 2010 MAV For Personal Property Expanded Freeport / Inventory Elimination Of Ad Valorem Tax On Business Inventory Heavy Duty Equipment Exemption Motor Vehicle Appeals Exemption Of Watercraft Dealers Inventory General Guidelines For Review And Verification Of Personal Property Returns
Georgia Department of Revenue Personal Property Mandatory Freeze On Assessment Increases Expanded Freeport / Inventory Exemption Elimination Of Ad Valorem Tax On Business Inventory Partial Heavy-Duty Equipment Exemption Motor Vehicle Appeals Marine Personal Property Dealer Inventory General Guidelines For Review And Verification Of Personal Property Returns
Georgia Department of Revenue Mandatory Assessment Value In 2009 HB 233 Established A Moratorium On Assessment Increases Of Existing Property Increases Allowed For Physical Changes New Property Added To The Digest At Fair Market Value
Georgia Department of Revenue MAV – Be Careful!!!! Allowed Audit Re-Group New Avionics Not Allowed Increasing value on equipment that hasnt changed. Increasing boat and aircraft values
Georgia Department of Revenue Freeport / Inventory Exemption For 2010 HB 1082 Revises The Freeport / Inventory Exemption To Include Retail Inventory
Georgia Department of Revenue Freeport / Inventory Exemption Establishes Level 1 and Level 2 Exemptions Creates New Code Sections 48-5-48.5 & 48.6 Level 1 Corresponds to Previously Established Exemption Level 2 Extends Finished Goods to include Stock-in-trade of a retailer
Georgia Department of Revenue Freeport / Inventory Exemption Level 2 Must Be Approved By Local Vote May Be Enacted By Governing Authority The Jurisdiction (County, City) at 20, 40, 60, 80, or 100% Of The Value Qualifying
Georgia Department of Revenue House Bill 1082 Revenue LOSS Reports Notify City and County Financial Impact is?
Georgia Department of Revenue House Bill 1082 Waiting on Governors' Signature.
Georgia Department of Revenue Inventory Exemption 48-5-41.2. (For effective date, see note.) Exemption from taxation of personal property in inventory for business. All tangible personal property constituting the inventory of a business shall be exempt from state ad valorem taxation. (Code 1981, 48-5-41.2, enacted by Ga. L. 2009, p. 674, 1/HB 482.) Delayed effective date. - Ga. L. 2009, p. 674, 2, not codified by the General Assembly, provides that this Code section becomes effective on January 1, 2011, but only if approved in a state-wide referendum conducted on the date of the November, 2010, state- wide general election.
Georgia Department of Revenue 48-5-41.2 (Inventory Exemption) To be voted on this year (ballot). Effective January 1 st, 2011 if voted in.
Georgia Department of Revenue Inventory Definition 1 a : an itemized list of current assets: as (1) : a catalog of the property of an individual or estate (2) : a list of goods on hand b : a survey of natural resources c : a list of traits, preferences, attitudes, interests, or abilities used to evaluate personal characteristics or skills 2 : survey, summary 3 : the quantity of goods or materials on hand : stock 4 : the act or process of taking an inventory
Georgia Department of Revenue Inventory Definition 560-11-10-.08(.02)(1)(k)Inventory. Inventory means goods held for sale or lease or furnished under contracts for service; also, raw materials, work in process or materials used or consumed in a business.
Georgia Department of Revenue Heavy Duty Equipment $100,000 Exemption Statewide Digest Code SY Construction, Mining, Maritime, and Industrial Use When in Doubt, Taxable Consult Your County Attorney
Georgia Department of Revenue Motor Vehicle Appeals Value established by motor vehicle division Consists of 50% retail and 50% wholesale of base model for each vehicle In 2010 some light trucks and suvs increased in value from 2009 due to increased cost of a new vehicle of the same model
Georgia Department of Revenue Motor Vehicle Appeals Motor vehicles are subject to the moratorium on assessment increases
Georgia Department of Revenue Motor Vehicle Appeals All increases had to be corrected Caused other vehicles to be appealed
Georgia Department of Revenue Motor Vehicle Appeals Appeals are handled just as any other Taxpayer files in writing to the BOA BOA reviews appeal Makes any changes warranted or forwards to the BOE
Georgia Department of Revenue Motor Vehicle Appeal You may want to entertain the idea of a BOA policy that addresses this appeal process. For instance an owner under appeal driving around with an expired tag while you are processing the appeal……you may want to require them pay for the tag prior to filing the appeal so that this doesnt happen.
Georgia Department of Revenue Review Appeal Information concerning vehicle is verified A pricing guide is consulted and adjustments as indicated are made REMEMBER! Value is based on 50% retail and 50% wholesale
Georgia Department of Revenue Review Appeal You may also want to use shops, garages, repair facilities to gather independent estimates of repair that may be pertinent to the automobile under appeal in order to establish a more accurate value.
Georgia Department of Revenue Motor Vehicle Appeals Before forwarding appeal to board of equalization it is crucial that the previous step has been performed Prepare presentation including all facts gathered
Georgia Department of Revenue Exemption Of Inventory Of Watercraft Dealers First enacted in 2006 set to sunset in 2008 Continued in 2008 through 2010 Continued in 2011 through 2013
Georgia Department of Revenue General Guidelines For Audits Audit can be defined as a formal examination of an organization's or individual's accounts or financial situation Or, more appropriate for the purposes of Ad Valorem taxation of personal property, a methodical examination and review
Georgia Department of Revenue General Guidelines For Audits Because of the self-reporting nature of personal property, it is important that counties verify information to ensure that all property is properly returned for taxation. Past history shows that many reports filed by property owners may be incomplete and the review and verification of these reports results in the discovery of additional property that would otherwise have escaped taxation. It is important that any review procedure be directed at improving taxpayer education as well as the discovery of property not otherwise returned for taxation.
Georgia Department of Revenue General Guidelines For Audits Authority to audit personal property returns is derived from O.C.G.A. § 48-5-299 and O.C.G.A. § 48-5-305 Regulations concerning audit procedure found in 560-11-10-.08(4)
Georgia Department of Revenue Audit Selection Criteria The County appraisal staff shall recommend to the BOA audit selection criteria and when adopted by the BOA shall follow such criteria. All personal property accounts should be reviewed or audited at least once every three years.
Georgia Department of Revenue Review and Audit What is the difference between a review and an audit? APM and Regulation.
Georgia Department of Revenue The Duck Test If it looks like a duck If it walks like a duck If it flies like a duck If it quacks like a duck THEN ITS PROBABLY A DUCK
Georgia Department of Revenue Forms and Returns Vendors out there to print, fold, and mail returns. State approved returns. Not sure how much longer the state will buy and facilitate distribute forms. Also Change of Assessment notices by vendor. Upload function built into WinGAP for Vendors.