Georgia Senate Bill 346 (SB 346) included many changes to the property tax law. In a previous article I addressed this subject and I discussed the changes to the fair market value definition. The change discussed was the inclusion of distressed sales as comparable sales that must be considered.
The Bill also says that fair market value will be the transaction amount of the most recent bona fide sale in any year. The sale price will be the maximum allowable value for tax assessment purposes. If you bought your property in 2010 for $300,000 then the assessors market value estimate for tax year 2011 shall be no more than $300,000.
The Bill does address some situations where the assessors can adjust the value: * Land adjustments due to consolidations, zoning changes, etc. * Personal property included in the sale price * Major remodeling/renovation after the sale * Additions to existing improvements after the sale date * New improvements after the sale date
If the tax assessors place your market value at your recent sale price you need to check you neighbors/competition for equity comparison. Sales within a market area should be used by the assessors to adjust all values within the market area, not just the sales. If you find that your property value was increased because of a sale price but other values were not touched you may have a valid reason to appeal.
In response to SB 346 the Georgia Department of Revenue (DOR) has implemented two new forms for the property tax process. PT 306 is the new uniform assessment notice that will be used by all county tax assessors in Georgia. PT 311 is a uniform appeal form that the DOR has developed, but there is no requirement to use this form when appealing your property tax assessment.
It used to be that only the owner on January 1 could appeal for that tax year. Now, whoever is the owner as of the last date to appeal is able to appeal the assessment. If you are not satisfied with the result of your appeal to the Board of Tax Assessors, you can still appeal to the Board of Equalization or Arbitration but there is now a third option called a Hearing Officer. The Hearing Officer will hear arguments on value and uniformity for non-homestead (not owner-occupied and receiving an exemption) properties with values greater than $1 million.
The section of property tax law referred to as 299C which requires that values settled at the Board of Equalization be frozen for three years has been extended so that any written agreement of value between taxpayer and tax assessor is now subject to the three year freeze. These changes to the property tax law were born out of frustration with the tax assessors and they come a long way toward leveling the playing field.
The Bill also says that fair market value will be the transaction amount of the most recent bona fide sale in any year. The sale price will be the maximum allowable value for tax assessment purposes. If you bought your property in 2010 for $300,000 then the assessors market value estimate for tax year 2011 shall be no more than $300,000.
The Bill does address some situations where the assessors can adjust the value: * Land adjustments due to consolidations, zoning changes, etc. * Personal property included in the sale price * Major remodeling/renovation after the sale * Additions to existing improvements after the sale date * New improvements after the sale date
If the tax assessors place your market value at your recent sale price you need to check you neighbors/competition for equity comparison. Sales within a market area should be used by the assessors to adjust all values within the market area, not just the sales. If you find that your property value was increased because of a sale price but other values were not touched you may have a valid reason to appeal.
In response to SB 346 the Georgia Department of Revenue (DOR) has implemented two new forms for the property tax process. PT 306 is the new uniform assessment notice that will be used by all county tax assessors in Georgia. PT 311 is a uniform appeal form that the DOR has developed, but there is no requirement to use this form when appealing your property tax assessment.
It used to be that only the owner on January 1 could appeal for that tax year. Now, whoever is the owner as of the last date to appeal is able to appeal the assessment. If you are not satisfied with the result of your appeal to the Board of Tax Assessors, you can still appeal to the Board of Equalization or Arbitration but there is now a third option called a Hearing Officer. The Hearing Officer will hear arguments on value and uniformity for non-homestead (not owner-occupied and receiving an exemption) properties with values greater than $1 million.
The section of property tax law referred to as 299C which requires that values settled at the Board of Equalization be frozen for three years has been extended so that any written agreement of value between taxpayer and tax assessor is now subject to the three year freeze. These changes to the property tax law were born out of frustration with the tax assessors and they come a long way toward leveling the playing field.
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