Overview
If an individual or business purchase heavy-duty equipment from a dealer, it is subject to ad valorem tax in the year of purchase. A return must be completed and submitted to the Newton County Tax Commissioner within 30 days of the end of the month in which the purchase was made.
Effective from January 1, 1999, heavy-duty motor vehicle equipment in a dealer’s possession is not taxable in that year. Instead, when the equipment is sold it is taxed, provided it is sold on or before December 20 of that year.
If the equipment is sold to a government entity or to another dealer, the heavy-duty equipment is exempt from taxes. If the equipment is manufactured with the intended use as farm equipment, it is taxable to the dealer not to the farmer or purchaser. However, heavy-duty equipment having an intended use other than as farm equipment is taxed to the purchaser not the dealer even if it is sold to a farmer for use on the farm (i.e., backhoe, forklift, etc.)
Additional Information
Sold to taxpayers domiciled in Georgia:
Overview
Any person or entity which purchases a heavy-duty equipment motor vehicle from a dealer shall, for only the taxable year in which the heavy-duty equipment motor vehicle is purchased, return to the appropriate county such heavy-duty equipment motor vehicle for ad valorem taxation purposes within 30 days of the end of the month in which such purchase is made, and shall pay a tax for such taxable year.
Upon receipt of such return, the Tax Commissioner shall bill the purchaser for the ad valorem tax. Such tax shall be equal to 33 1/3% of the amount derived by multiplying the amount of ad valorem tax which would otherwise be due on the heavy-duty equipment motor vehicle and shall be based on the selling price to the end user times 40%, thus deriving the taxable assessment, times the tax rate imposed by the tax authority for the preceding tax year, by a fraction the numerator of which is the number of months remaining in the calendar year not counting the month of purchase and the denominator of which is 12.
In no event shall the ad valorem tax due be less than $100 for the year of purchase. The taxes levied shall be due 60 days after the billing. For additional information or questions please contact the Office of the Tax Commissioner at (770)784-2020.
Sold to taxpayers not domiciled in Georgia:
Overview
In the event that any heavy-duty equipment motor vehicle is purchased, other than for resale, by a person or entity not domiciled in this state, at the time of the sale the dealer shall collect the ad valorem tax which would be applicable for the county where the heavy-duty equipment motor vehicle was held in inventory at the time of the sale.
Each dealer, on or before the last day of the month following a sale to such person or entity, shall transmit returns and remit the ad valorem taxes collected (using the formula below) to the Newton County Tax Commissioner where the heavy-duty equipment motor vehicle was held in inventory at the time of the sale.
Such returns shall show all taxable sales during the preceding calendar month. If any dealer liable for any tax, interest, or penalty sells out his or her business’s heavy-duty equipment motor vehicles or quits the business, he or she shall make a final return and payment within 30 days after the date of selling or quitting the business. Any dealer who does not collect tax as required under this paragraph or who fails to properly remit taxes collected under this paragraph shall be liable for the tax and the Newton County Tax Commissioner shall collect such tax, penalty, and interest in the same manner that other taxes are collected.
Formula
Such tax shall be equal to 33 1/3 % of the amount derived by multiplying the amount of ad valorem tax which would otherwise be due on the heavy-duty equipment motor vehicle and shall be based on the selling price to the end user times 40%, thus deriving the taxable assessment, times the tax rate imposed by the tax authority for the preceding tax year, by a fraction the numerator of which is the number of months remaining in the calendar year not counting the month of purchase and the denominator of which is 12. In no event shall the ad valorem tax due be less than $100 for the year of purchase. The taxes levied shall be due 60 days after the billing.
For additional information or questions please contact the Office of the Tax Commissioner at (770)784-2020.
Not sold as of December 20:
Overview
Heavy-duty equipment motor vehicles which were in the dealer’s inventory on January 1 and remain in the dealer’s inventory on December 20 shall be returned for taxes on December 21 of that taxable year. The assessed value shall be 40% of the fair market value of the heavy-duty equipment motor vehicle on January 1 of the taxable year. The Tax Commissioner shall prepare and mail a bill to the dealer based on the return. The taxes shall be due 60 days after the billing.
For additional information or questions please contact the Office of the Commissioner at (770)784-2020.
Dealer’s Responsibility
Within 30 days of the last day of a month during which there is a sale of any heavy-duty equipment motor vehicle other than for resale, the dealer shall mail to the Tax Commissioner of the County where the purchaser is domiciled a statement notifying the Tax Commissioner of the sale which shall include information such as the date of the sale, the selling price, and the name and address of the purchaser.
Penalties & Interest
- Failure To Return – 10% penalty (O.C.G.A § 48-2-44)
- Late Payment Penalty – 10% (O.C.G.A § 48-5-24 (d))
- Interest – at rate specified in O.C.G.A § 48-2-40
