Impact of the Removal of Taxes
on Motor Vehicles
We have done an estimate of the calculation of the impact of the removal of
taxes on motor vehicles. Just as the School system discussed the dramatic
impact on their revenues, we will also suffer a similar impact. Since we are
currently at the 9 mil cap, there is no means to recover monies thru a tax
increase in the General Fund. The other funds do not have the same limitations,
but will receive less revenue as indicated at the chart below. At this point
in time, I think there is some discussion for the state to make up the
difference to municipalities, but we don't have any information on how that
would be accomplished.
Impact on Local Boards of Education if Motor Vehicle Tag Tax is Repealed
Estimated Mills # Teachers
School District $ Impact To
Recoup $ would buy
Atlanta Public Schools $17,000,000 0.9559
mills N/A
Cherokee County $10,345,085 1.54 mills
265 teachers **
Clayton County $12,536,195^ 1.634 mills
230 teachers **
Cobb County 30,000,000 1.54
mills 608 teachers *
DeKalb County 29,000,000 1.47
mills 564 teachers *
Douglas County 5,000,000
N/A N/A
Fulton County 22,000,000 1.0
mills 340 teachers **
Gwinnett County 35,000,000 1.5 mills ++
578 teachers **
Henry County 8,000,000 1.44
mills 177 teachers +
Muscogee County 7,100,000 1.96 mills
104 teachers **
Paulding County 4,440,488 1.28
mills 127 teachers
* T-4 salary level with zero years experience
** District average salary
+ District to levy 20 mills in FY07. Cannot recoup loss of tag tax, which is
6.3% of total digest revenues.
++ District is capped at 20 mills, currently levies 19.25, and cannot recover
through property tax all of the loss if motor vehicle tax repealed.
^ FY07 estimated. District had actual revenues of $12,771,672 in FY06.
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