Thursday, October 13, 2016

City official predicts 3 years before motor vehicle tax revenues "disappear"

Cedartown city manager Bill Fann says that local ad valorem tax revenues from cars and trucks in Georgia will virtually vanish in three years.  The state reformed the "birthday tax" system several years ago, and local governments were concerned at the time that the redesigned system would eventually lead to decreased revenues.  From the Polk County Standard Journal:
...It’s a problem all local governments are facing, and city manager Bill Fann has one big answer as to why: ad valorem tax is disappearing for motor vehicles.
“The [Cedartown] millage rate has been virtually constant, yet the net ad valorem tax revenue is down from 2012 to 2016,” he said. 
He said because Georgia’s annual motor vehicle tax is almost non-existent, with it being replaced by payments made when a vehicle is first purchased followed by an annual tag fee each year, the money that cities and counties once relied on to help decrease taxes overall isn’t there anymore.
“It’ll be three years before it virtually disappears,” he said...

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