Bill Text: GA HB259 | 2011-2012 | Regular Session | Comm Sub

Georgia House Bill 259 (Prior Session Legislation)

Bill Title: Motor vehicle taxation; comprehensive revision

Spectrum: Slight Partisan Bill (Republican 4-2)

Status: (Introduced - Dead) 2011-04-14 - House Withdrawn, Recommitted [HB259 Detail]

Download: Georgia-2011-HB259-Comm_Sub.html

11 LC 28 5672S

The House Committee on Ways and Means offers the following substitute to HB 259:

A BILL TO BE ENTITLED
AN ACT

To amend Titles 40 and 48 of the Official Code of Georgia Annotated, relating, respectively, to motor vehicles and revenue and taxation, so as to provide for the comprehensive revision of taxation of motor vehicles; to change certain provisions regarding tag agents; to provide for state and local title fees; to provide for definitions; to provide for continuation of tag, revalidation, and registration fees; to provide for distribution of such state and local title fees; to exclude certain vehicles from certain fees; to change certain provisions regarding classification of motor vehicles as a separate class of property for ad valorem tax purposes; to provide for an additional classification exempt from such taxation; to provide for an exemption from sales and use taxes only with respect to certain sales or purchases of certain motor vehicles; to provide for certain reports; to provide for the intent of the General Assembly with regard to the allocation of certain funds received from state title fees and for funding the Georgia Trauma Trust Fund; to provide for a study committee to review and report on such state and local title fees; to provide for effective dates; to provide for applicability; to provide that this Act shall not abate or affect prosecutions, punishments, penalties, administrative proceedings or remedies, or civil actions related to certain violations; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Title 40 of the Official Code of Georgia Annotated, relating to motor vehicles, is amended by revising Code Section 40-2-23, relating to county tax collectors and county tax commissioners' designation as tax agents, as follows:

"40-2-23.

(a) The tax collectors of the various counties of this state and the tax commissioners of those counties in which the duties of the tax collector are performed by a tax commissioner shall be designated as tag agents of the commissioner for the purpose of accepting applications for the registration of vehicles. The commissioner is authorized to promulgate rules and regulations for the purpose of delegating to such tag agents the custodial responsibility for properly receiving, processing, issuing, and storing motor vehicle titles or registrations, or both.

(b) The state revenue commissioner is authorized to further designate each such tag agent as a sales tax agent for the purpose of collecting sales and use tax with respect to the casual sale or casual use of a motor vehicle. For purposes of this Code section, 'casual sale' or 'casual use' means the sale of a motor vehicle by a person who is not regularly or systematically engaged in making retail sales of motor vehicles and the first use, consumption, distribution, or storage for use or consumption of such motor vehicle purchased through a casual sale. As personal compensation for services rendered to the Department of Revenue with respect to the collection of such sales and use tax, each such designated tag agent shall be authorized to retain from such collection a fee of $200.00 per month. In any month in which an insufficient amount of such tax is collected to pay such fee, the amount of any such unpaid fee may be deferred until such month as sufficient collections are made. Such compensation shall be in addition to any other compensation to which such tax collector or tax commissioner is entitled.

(c)(b) The duties and responsibilities of agents of the commissioner designated under this Code section shall be a part of the official duties and responsibilities of the county tax collectors and tax commissioners."

SECTION 2.

Said title is further amended by adding a new Code section to read as follows:

"40-2-25.1.

(a) As used in this Code section, the term:

(1) 'Fair market value of a motor vehicle' means:

(A) The average of the current fair market value and the current wholesale value of a motor vehicle for a vehicle listed in the current motor vehicle ad valorem assessment manual utilized by the state revenue commissioner in determining taxable value of a motor vehicle under Code Section 48-5-442;

(B) For a used motor vehicle which is not so listed in such current motor vehicle ad valorem assessment manual, the value from the bill of sale or the value from a reputable used car market guide designated by the commissioner, whichever is greater; or

(C) The fair market value determined by the state revenue commissioner from the bill of sale of a new motor vehicle for which there is no value under subparagraph (A) of this paragraph, less any rebate and before any reduction for the trade-in value of another motor vehicle.

(2) 'Immediate family member' means spouse, parent, child, or sibling.

(3) 'Loaner vehicle' means a motor vehicle owned by a dealer which is withdrawn temporarily from dealer inventory for exclusive use as a courtesy vehicle loaned at no charge for a period not to exceed 30 days within a calendar year to any one customer whose motor vehicle is being serviced by such dealer.

(4) 'Rental charge' means the total value received by a rental motor vehicle entity for the rental for 31 or fewer consecutive days of a rental motor vehicle, including the total cash and nonmonetary consideration for the rental, including, but not limited to, charges based on time or mileage and charges for insurance coverage or collision damage waiver, but excluding all charges for motor fuel taxes or sales taxes.

(5) 'Rental motor vehicle' means a motor vehicle designed to carry ten or fewer passengers and used primarily for the transportation of persons that is rented without a driver.

(6) 'Trade-in value' means the value of the motor vehicle as stated in the bill of sale for a vehicle which has been traded in to the dealer in a transaction involving the purchase of another vehicle from the dealer.

(b)(1)(A) Except as otherwise provided in this subsection, any motor vehicle for which a title is issued in this state on or after January 1, 2012, shall be exempt from sales tax to the extent provided under paragraph (92) of Code Section 48-8-3 and shall not be subject to ad valorem tax as otherwise required under Chapter 5 of Title 48. Any such motor vehicle shall be titled as otherwise required under this title but shall be subject to a state title fee in the amount equal to 3.24 percent of the fair market value of such vehicle less any trade-in value and a local title fee in the amount equal to 3.51 percent of the fair market value of such vehicle less any trade-in value.

(B) The application for title and the title fees provided for in subparagraph (A) of this paragraph shall be paid to the tag agent in the county in which the purchaser registers such motor vehicle and shall be paid at the time the purchaser applies for a title and registers such motor vehicle.

(C) There shall be a penalty imposed on any person who, in the determination of the state revenue commissioner, falsifies any information in any bill of sale used for purposes of determining fair market value. Such penalty shall not exceed $2,500.00 as a state penalty and shall not exceed $2,500.00 as a local penalty as determined by the state revenue commissioner. Such determination shall be made within 60 days of the state revenue commissioner receiving information of a possible violation of this paragraph.

(2) A person or entity acquiring a salvage title pursuant to subsection (b) of Code Section 40-3-36 shall not be subject to the fee specified in paragraph (1) of this subsection but shall be subject to a state title fee of $20.00.

(c)(1) The amount of proceeds collected by tag agents each month as state and local title fees, state and local salvage title fees, administrative fees, penalties, and interest pursuant to subsection (b) of this Code section shall be allocated and disbursed as provided in this subsection.

(2)(A) For the 2012 tax year and in each subsequent tax year, the amount of such funds shall be disbursed within 30 days following the end of each calendar month as follows:

(i) State title fees, state salvage title fees, administrative fees, penalties, and interest shall be remitted to the state revenue commissioner who shall deposit such proceeds in the general fund of the state less an amount not to exceed 1 percent of the total amount otherwise required to be remitted under this subparagraph to defray the cost of administration. Such amount shall be remitted to the collecting county's general fund. Failure by the tag agent to disburse within such 30 day period shall result in a forfeiture of such administrative fee plus interest on such amount at the rate specified in Code Section 48-2-40; and

(ii) Local title fees, local salvage title fees, administrative fees, penalties, and interest shall be designated as local government funds. The tag agent shall then distribute the proceeds as specified in paragraph (3) of this subsection.

(B) For the 2013 tax year and in each subsequent tax year:

(i) The state title fee percentage figure specified in subparagraph (b)(1)(A) of this Code section shall decrease annually by 0.135 percent until the state title fee shall be in an amount equal to 2.025 percent of the fair market value of such vehicle less any trade-in value; and

(ii) The local title fee percentage figure specified in subparagraph (b)(1)(A) of this Code section shall increase annually by 0.135 percent until the local title fee shall be in an amount equal 4.725 percent of the fair market value of such vehicle less any trade-in value.

(3) The local title fee proceeds required under this subsection shall be distributed as follows:

(A) The tag agent of the county shall within 30 days following the end of each calendar month allocate and distribute to the county governing authority and to municipal governing authorities, the board of education of the county school district, and the board of education of any independent school district located in such county an amount of those proceeds necessary to offset any reduction in ad valorem tax on motor vehicles collected in the taxing jurisdiction of each governing authority and school district from the amount of ad valorem taxes on motor vehicles collected in each such governing authority and school district during the same calendar month of 2011. This reduction shall be calculated by subtracting the amount of ad valorem tax on motor vehicles collected in each such taxing jurisdiction from the amount of ad valorem tax on motor vehicles collected in that taxing jurisdiction in the same calendar month of 2011. In the event that the local title fee proceeds are insufficient to fully offset the reduction in ad valorem taxes on motor vehicles, the tag agent shall allocate a proportionate amount of the proceeds to each governing authority and to the board of education of each such school district, and any remaining shortfall shall be paid from the following month's local title fee proceeds. In the event that a shortfall remains, the tag agent shall continue to first allocate local title fee proceeds to offset such shortfalls until the shortfall has been fully repaid; and

(B) Of the proceeds remaining following the allocation and distribution under subparagraph (A) of this paragraph, the tag agent shall allocate and distribute to the county governing authority and to municipal governing authorities, the board of education of the county school district, and the board of education of any independent school district located in such county the remaining amount of those proceeds in the manner provided in this subparagraph. Such proceeds shall be deposited in the general fund of such governing authority or board of education and shall not be subject to any use or expenditure requirements provided for under any of the following described local sales and use taxes but shall be authorized to be expended in the same manner as authorized for ad valorem tax revenues on motor vehicles which would otherwise have been collected for such governing authority or board of education. Of such remaining proceeds:

(i) An amount equal to one-third of such proceeds shall be distributed to the board of education of the county school district and the board of education of each independent school district located in such county in the same manner as required for any local sales tax for educational purposes levied pursuant to Part 2 of Article 3 of Chapter 8 of Title 48 currently in effect. If such tax is not currently in effect, such proceeds shall be distributed to such board or boards of education in the same manner as if such tax were in effect;

(ii)(I) Except as otherwise provided in this division, an amount equal to one-third of such proceeds shall be distributed to the governing authority of the county and the governing authority of each qualified municipality located in such county in the same manner as specified under the distribution certificate for the joint county and municipal sales and use tax under Article 2 of Chapter 8 of Title 48 currently in effect.

(II) If such tax were never in effect, such proceeds shall be distributed to the governing authority of the county and the governing authority of each qualified municipality located in such county on a pro rata basis according to the ratio of the population that each such municipality bears to the population of the entire county.

(III) If such tax is currently in effect as well as a local option sales and use tax for educational purposes levied pursuant to a local constitutional amendment, an amount equal to one-third of such proceeds shall be distributed in the same manner as required under subdivision (I) of this division and an amount equal to one-third of such proceeds shall be distributed to the board of education of the county school district.

(IV) If such tax is not currently in effect and a local option sales and use tax for educational purposes levied pursuant to a local constitutional amendment is currently in effect, such proceeds shall be distributed to the board of education of the county school district and the board of education of any independent school district in the same manner as required under that local constitutional amendment.

(V) If such tax is not currently in effect and a homestead option sales and use tax under Article 2A of Chapter 8 of Title 48 is in effect, such proceeds shall be distributed to the governing authority of the county, each qualified municipality, and each existing municipality in the same proportion as otherwise required under Code Section 48-8-104; and

(iii)(I) An amount equal to one-third of such proceeds shall be distributed to the governing authority of the county and the governing authority of each qualified municipality located in such county in the same manner as specified under an intergovernmental agreement or as otherwise required under the county special purpose local option sales and use tax under Part 1 of Article 3 of Chapter 8 of Title 48 currently in effect; provided, however, that this subdivision shall not apply if subdivision (III) of division (ii) of this subparagraph is applicable.

(II) If such tax were in effect but expired and is not currently in effect, such proceeds shall be distributed to the governing authority of the county and the governing authority of each qualified municipality located in such county in the same manner as if such tax were still in effect according to the intergovernmental agreement or as otherwise required under the county special purpose local sales and use tax under Part 1 of Article 3 of Chapter 8 of Title 48 for the 12 month period commencing at the expiration of such tax. If such tax is not renewed prior to the expiration of such 12 month period, such amount shall be distributed in accordance with subdivision (I) of division (ii) of this subparagraph; provided, however, that if a tax under Article 2 of Chapter 8 of Title 48 is not in effect, such amount shall be distributed in accordance with subdivision (II) of division (ii) of this subparagraph.

(III) If such tax is not currently in effect in a county in which a tax is levied for purposes of a metropolitan area system of public transportation, as authorized by the amendment to the Constitution set out at Ga. L. 1964, p. 1008; the continuation of such amendment under Article XI, Section I, Paragraph IV(d) of the Constitution; and the laws enacted pursuant to such constitutional amendment, such proceeds shall be distributed to the governing body of the authority created by local Act to operate such metropolitan area system of public transportation.

(IV) If such tax were never in effect, such proceeds shall be distributed in the same manner as specified under the distribution certificate for the joint county and municipal sales and use tax under Article 2 of Chapter 8 of Title 48 currently in effect; provided, however, that if such tax under such article is not in effect, such proceeds shall be distributed to the governing authority of the county and the governing authority of each qualified municipality located in such county on a pro rata basis according to the ratio of the population that each such municipality bears to the population of the entire county.

(4) In the event that the portion of the funding formula set forth in paragraph (3) of this subsection with regard to boards of education is found to be invalid or constitutionally impermissible, then the portion that would otherwise have been transferred to the boards of education by the tag agent shall be transferred to the county governing authority.

(d)(1)(A) Upon the death of an owner of a motor vehicle which has not become subject to paragraph (1) of subsection (b) of this Code section, the immediate family member or immediate family members of such owner who receive such motor vehicle pursuant to a will or under the rules of inheritance shall, subsequent to the transfer of title of such motor vehicle, continue to be subject to ad valorem tax and shall not be subject to the state and local title fees provided for in subparagraph (b)(1)(A) of this Code section unless the immediate family member or immediate family members make an affirmative written election to become subject to paragraph (1) of subsection (b) of this Code section. In the event of such election, such transfer shall be subject to the state and local title fees provided for in subparagraph (b)(1)(A) of this Code section.

(B) Upon the death of an owner of a motor vehicle which has become subject to paragraph (1) of subsection (b) of this Code section, the immediate family member or immediate family members of such owner who receive such motor vehicle pursuant to a will or under the rules of inheritance shall be allowed a one-time exemption from state and local title fees upon payment in lieu thereof a $25.00 state administrative fee and a $25.00 local administrative fee.

(2)(A) Upon the transfer from an immediate family member of a motor vehicle which has not become subject to paragraph (1) of subsection (b) of this Code section, the immediate family member or immediate family members who receive such motor vehicle shall, subsequent to the transfer of title of such motor vehicle, continue to be subject to ad valorem tax and shall not be subject to the state and local title fees provided for in subparagraph (b)(1)(A) of this Code section unless the immediate family member or immediate family members make an affirmative written election to become subject to paragraph (1) of subsection (b) of this Code section. In the event of such election, such transfer shall be subject to the state and local title fees provided for in subparagraph (b)(1)(A) of this Code section.

(B) Upon the transfer from an immediate family member of a motor vehicle which has become subject to paragraph (1) of subsection (b) of this Code section, the immediate family member who receives such motor vehicle shall transfer title of such motor vehicle to such recipient family member and shall be allowed a one-time exemption from state and local title fees upon payment in lieu thereof a $25.00 state administrative fee and a $25.00 local administrative fee.

(C) Any title transfer under this paragraph shall be accompanied by an affidavit of the transferor and transferee that such persons are immediate family members to one another. There shall be a penalty imposed on any person who, in the determination of the state revenue commissioner, falsifies any material information in such affidavit. Such penalty shall not exceed $2,500.00 as a state penalty and shall not exceed $2,500.00 as a local penalty as determined by the state revenue commissioner. Such determination shall be made within 60 days of the state revenue commissioner receiving information of a possible violation of this paragraph.

(3) Any individual who:

(A) Is required by law to register a motor vehicle or motor vehicles in this state which were registered in the state in which such person formerly resided; and

(B) Is required to file an application for a certificate of title under Code Section 40-3-21 or 40-3-32

shall only be required to pay state and local title fees in the amount of 50 percent of the amount which would otherwise be due and payable under this subsection at the time of filing the application for a certificate of title, and the remaining 50 percent shall be paid within 12 months.

(4) The state and local title fees provided for under this Code section shall not apply to corrected titles, replacement titles under Code Section 40-3-31, or titles reissued to the same owner pursuant to Code Sections 40-3-50 through 40-3-56.

(5) Any motor vehicle subject to state and local title fees under subparagraph (b)(1)(A) of this Code section shall continue to be subject to the title, license plate, revalidation decal, and registration requirements and applicable fees as otherwise provided in this title in the same manner as motor vehicles which are not subject to state and local title fees under subparagraph (b)(1)(A) of this Code section.

(6) Motor vehicles owned or leased by or to the state or any county, consolidated government, municipality, county or independent school district, or other government entity in this state shall not be subject to the state and local title fees provided for under subparagraph (b)(1)(A) of this Code section; provided, however, that such other government entity shall not qualify for the exclusion under this paragraph unless it is exempt from ad valorem tax and sales and use tax pursuant to general law.

(7)(A) Any motor vehicle which is exempt from sales and use tax pursuant to paragraph (30) of Code Section 48-8-3 shall be exempt from state and local title fees under this subsection.

(B) Any motor vehicle which is exempt from ad valorem taxation pursuant to Code Section 48-5-478, 48-5-478.1, 48-5-478.2, or 48-5-478.3 shall be exempt from state and local title fees under subparagraph (b)(1)(A) of this Code section.

(8) There shall be a penalty imposed on the transfer of all or any part of the interest in a business entity that includes primarily as an asset of such business entity one or more motor vehicles, when, in the determination of the state revenue commissioner, such transfer is done to evade the payment of state and local title fees under this subsection. Such penalty shall not exceed $2,500.00 as a state penalty per motor vehicle and shall not exceed $2,500.00 as a local penalty per motor vehicle, as determined by the state revenue commissioner, plus the amount of the state and local title fees. Such determination shall be made within 60 days of the state revenue commissioner receiving information that a transfer may be in violation of this paragraph.

(9) Any owner of any motor vehicle who fails to submit within 30 days of the date such owner is required by law to register such vehicle in this state an application for a first certificate of title under Code Section 40-3-21 or a certificate of title under Code Section 40-3-32 shall be required to pay a penalty in the amount of 10 percent of the state title fees and 10 percent of the local title fees required under this Code section, plus interest at the rate of 1.0 percent per month, unless a temporary permit has been issued by the tax commissioner. The tax commissioner shall grant a temporary permit in the event the failure to timely apply for a first certificate of title is due to the failure of a lienholder to comply with Code Section 40-3-56, regarding release of a security interest or lien, and no penalty or interest shall be assessed. Such penalty and interest shall be in addition to the penalty and fee required under Code Section 40-3-21 or 40-3-32, as applicable. A new or used motor vehicle dealer shall be responsible for remitting state and local title fees in the same manner as otherwise required of an owner under this paragraph and shall be subject to the same penalties and interest as an owner for noncompliance with the requirements of this paragraph.

(10) The owner of any motor vehicle purchased in this state for which a title was issued in this state on or after January 1, 2011, and prior to January 1, 2012, shall be authorized to opt in to the provisions of this subsection at any time prior to January 1, 2013, upon compliance with the following requirements:

(A)(i) The total amount of state and local title fees which would be due in 2012 if such vehicle had been titled in 2012 shall be determined; and

(ii) The total amount of state and local sales and use tax and state and local ad valorem tax which were due and paid in 2011 for that motor vehicle and, if applicable, the total amount of such taxes which were due and paid for that motor vehicle in 2012 shall be determined; and

(B)(i) If the amount derived under subparagraph (A) of this paragraph is greater than the amount derived under subparagraph (B) of this paragraph, the owner shall remit the difference to the tag agent. Such remittance shall be deemed local title fee proceeds; or

(ii) If the amount derived under subparagraph (A) of this paragraph is less than the amount derived under subparagraph (B) of this paragraph, no additional amount shall be due and payable by the owner.

Upon certification by the tag agent of compliance with the requirements of this paragraph, such motor vehicle shall be exempt from sales tax to the extent provided for under paragraph (92) of Code Section 48-8-3 and shall not be subject to ad valorem tax as otherwise required under Chapter 5 of Title 48 in the same manner as otherwise provided in paragraph (1) of subsection (b) of this Code section.

(11)(A) In the case of a fleet of 50 or fewer rental motor vehicles, the state title fee shall be $100.00 per motor vehicle, and the local title fee shall be $150.00 per motor vehicle, but only if in the immediately prior calendar year the average amount of sales and use tax attributable to the rental charge of each rental motor vehicle in such fleet was at least $300.00 as certified by the state revenue commissioner.

(B) In the case of a fleet of more than 50 rental motor vehicles, the state title fee shall be $140.00 per motor vehicle, and the local title fee shall be $210.00 per motor vehicle, but only if in the immediately prior calendar year the average amount of sales and use tax attributable to the rental charge of each rental motor vehicle in such fleet was at least $400.00 as certified by the state revenue commissioner.

(12) A loaner vehicle shall be exempt from state and local title fees under subparagraph (b)(1)(A) of this Code section for a period of time not to exceed six months in a calendar year commencing on the date such loaner vehicle is withdrawn temporarily from inventory. Immediately upon the expiration of such six-month period, if the dealer does not return the loaner vehicle to inventory for resale, the dealer shall be responsible for remitting state and local title fees in the same manner as otherwise required of an owner under paragraph (9) of this subsection and shall be subject to the same penalties and interest as an owner for noncompliance with the requirements of paragraph (9) of this subsection.

(13) Any motor vehicle which is donated to a nonprofit organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code for the purpose of being transferred to another person shall, when titled in the name of such nonprofit organization, not be subject to state and local title fees under subparagraph (b)(1)(A) of this Code section but shall be subject to state and local title fees otherwise applicable to salvage titles under paragraph (2) of subsection (b) of this Code section.

(e) The fair market value of any motor vehicle subject to this Code section shall be appealable in the same manner as otherwise authorized for a motor vehicle subject to ad valorem taxation under Code Section 48-5-450.

(f)(1) As soon as practicable after the end of each fiscal year, the Office of Treasury and Fiscal Services shall report to the General Assembly, the Office of Planning and Budget, and the Georgia Trauma Care Network Commission the amount of funds from state title fees remitted to the state for deposit in the general fund pursuant to this Code section.

(2) It is the intent of the General Assembly that such funds be allocated as follows:

(A) For each fiscal year, an amount equal to 105 percent of the amount of state sales and use taxes received by the state on the sale of motor vehicles in 2011 shall be used for general appropriations;

(B) Subject to appropriation, an amount of those funds in excess of the amount provided in subparagraph (A) of this paragraph, if any, not to exceed the greater of $150 million or an amount equal to the aggregate of $50.00 for each title for which a state title fee was collected under subparagraph (b)(1)(A) of this Code section in the immediately preceding fiscal year shall be made available during the following fiscal year to the Georgia Trauma Trust Fund for use of the Georgia Trauma Care Network Commission for the purposes set forth in Code Section 31-11-102; and

(C) For each fiscal year, all funds in excess of the amounts provided in subparagraphs (A) and (B) of this paragraph, if any, shall be used for general appropriations.

(g) As soon as practicable on or after January 1, 2016, and on or after January 1, 2020, a committee shall be appointed pursuant to this subsection. The committee shall be composed of eight members. The Speaker of the House of Representatives shall appoint two members of the House of Representatives as members of the committee and shall designate one of such members as cochairperson. The Speaker of the House of Representatives shall also appoint an additional member of the committee who shall be an elected member of the governing authority of a county or municipality. The Senate Committee on Assignments shall appoint two members of the Senate as members of the committee and shall designate one of such members as cochairperson. The Senate Committee on Assignments shall also appoint an additional member of the committee who shall be an elected member of the governing authority of a county or municipality. The Governor shall appoint two members of the committee who shall be citizens of this state. The cochairpersons shall call all meetings of the committee. The committee shall undertake a study of the revenues generated pursuant to this Code section in comparison to the estimated revenues which would have been generated in the absence of this Code section and shall examine the equity of the amount of state and local title fees as well as any other substantive or procedural matters and recommend any action or legislation which the committee deems necessary or appropriate. The department shall provide data to the committee upon request by the committee regarding the revenues generated by this Code section. The committee may conduct such meetings at such places and at such times as it may deem necessary or convenient to enable it to exercise fully and effectively its powers, perform its duties, and accomplish the objectives and purposes of this subsection. The legislative members of the committee shall receive the allowances provided for in Code Section 28-1-8. Citizen members shall receive a daily expense allowance in the amount specified in subsection (b) of Code Section 45-7-21 as well as the mileage or transportation allowance authorized for state employees. All other funds necessary to carry out the provisions of this subsection regarding legislative members of the committee shall come from funds appropriated to the House of Representatives and the Senate. The expenses and allowances authorized by this subsection shall not be received by any member of the committee for more than five days unless additional days are authorized. In the event the committee makes a report of its findings and recommendations, with suggestions for proposed legislation, if any, such report shall be made on or before December 31, 2016, for the committee appointed in 2016 and on or before December 31, 2020, for the committee appointed in 2020. The committee shall stand abolished on December 31 of the year in which the committee is appointed."

SECTION 3.

Title 48 of Official Code of Georgia Annotated, relating to revenue and taxation, is amended by revising Code Section 48-5-441, relating to classification of motor vehicles and mobile homes as separate classes of tangible property for ad valorem tax purposes, as follows:

"48-5-441.

(a)(1) For the purposes of ad valorem taxation, motor vehicles are shall be classified as a separate and distinct class of tangible property. Such class of tangible property shall be divided into two distinct and separate subclasses of tangible property with one subclass including heavy-duty equipment motor vehicles as defined in Code Section 48-5-505 and the other subclass including all other motor vehicles. The procedures prescribed by this article for returning motor vehicles, excluding heavy-duty equipment motor vehicles as defined in Code Section 48-5-505, for taxation, determining the applicable rates for taxation, and collecting the ad valorem tax imposed on motor vehicles shall be exclusive.

(2) This subsection shall not apply to motor vehicles subject to Code Section 48-5-441.1.

(b) For the purposes of ad valorem taxation, mobile homes are shall be classified as a separate and distinct class of tangible property. The procedures prescribed by this article for returning mobile homes for taxation, determining the applicable rates for taxation, and collecting the ad valorem tax imposed on mobile homes shall be exclusive.

(c)(1) For the purposes of ad valorem taxation, commercial vehicles are shall be classified as a separate and distinct class of tangible property. The procedures prescribed by this article for returning commercial vehicles for taxation and for determining the valuation of commercial vehicles shall be exclusive and as provided for in Code Section 48-5-442.1. All other procedures prescribed by this article for the taxation of motor vehicles shall be applicable to the taxation of commercial vehicles.

(2) This subsection shall not apply to motor vehicles subject to Code Section 48-5-441.1."

SECTION 4.

Said title is further amended by adding a new Code section to read as follows:

"48-5-441.1.

Motor vehicles subject to the provisions of Code Section 40-2-25.1 shall be classified as a separate and distinct class of tangible property and shall be exempt from all ad valorem taxation."

SECTION 5.

Said title is further amended in Code Section 48-8-3, relating to exemptions from sales and use tax, by replacing "; or" with a semicolon at the end of paragraph (90), replacing the period at the end of paragraph (91) with "; or", and by adding a new paragraph to read as follows:

"(92) The sale or purchase of any motor vehicle titled in this state on or after January 1, 2013, pursuant to Code Section 40-2-25.1."

SECTION 6.

(a) This Act shall become effective on January 1, 2012.

(b) Tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not be affected by the passage of this Act and shall continue to be governed by the provisions of general law as it existed immediately prior to January 1, 2012.

(c) This Act shall not abate any prosecution, punishment, penalty, administrative proceedings or remedies, or civil action related to any violation of law committed prior to January 1, 2012.

SECTION 7.

All laws and parts of laws in conflict with this Act are repealed.