How Will 'Title Tax' Funds Be Divided in Gwinnett?

The new "title tax" on vehicle sales that went into effect in Georgia on March 1 means that Gwinnett County, its 16 cities and the Gwinnett County and Buford schools have to collaborate on sharing that revenue.

With the tax being so new, it's still unclear how much revenue each governing body and school system will receive. However, it means that a new intergovernmental agreement is necessary between the cities and the county as to how to allocate the money.

Gwinnett's Board of Commissioners approved the new deal on March 5, and Suwanee voted it in on March 26.

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In summary, according to Randy Meacham of the Gwinnett Municipal Association:

The formula for allocation is based on thirds – the first third  is 100 percent for the school boards. The second third, for Gwinnett County, is based on the distribution of the existing SPLOST agreement (signed in 2008). The final third is based on the new agreement that uses “population” as required by HB 386 (the new ad valorem law). 

The final population figures for this agreement are being finalized, Meacham said.

The "title tax" for vehicle sales means that after March 1, a buyer must make a one-time payment of 6.5 percent of the fair market value of the vehicle, not the sales price. This replaces the so-called "birthday tax," which was assessed annually.

Suwanee City Manager Marty Allen said that city's take likely would be in the "thousands" of dollars.

See also:

• Gwinnett Officials Ready for Tax Change on Car Sales

• New Vehicle 'Title Tax' Law May Also Bring Appeals

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