The property tax laws in Georgia have changed effective with tax year 2011. In response to taxpayer complaints, the Georgia legislature drafted Senate Bill 346 (SB 346) which the Governor signed last year. It addresses what taxpayers and the legislature saw as inaction on the part of tax assessors to address the dramatic drop in property values due to the recent recession. This article addresses changes to Georgia property tax law.
In Georgia, there is a form called the Taxpayers Return of Real Property. Real property owners are required to return their real property for taxation, similar to the way business owners return their taxable personal property in many states. Most Georgia counties have modern tax assessment departments which are fully capable of discovering or updating taxable real property descriptions, but the requirement to return your real property for taxation remains on the books. So is the option of assessing back taxes and penalties if you do not return improvements to real property and the assessor doesn't "discover" it in a timely manner. You do not, however, have to return a value every year, as the law allows for this by saying that if a return is not filed you have, in effect, returned the previous year's assessment.
The Taxpayer's Return of Real Property form (PT-50R) was also used to generate an assessment notice. If you returned a value that the assessors did not agree with, they had to send you an assessment notice at their value that you could appeal. This was important because the way the Georgia property tax law reads, you have to receive a notice before you can appeal in any tax year.
This reason for filing a taxpayer return of real property no longer exists however. Senate Bill 346 requires that starting in 2011, every property owner receive an assessment notice every year. That means you will have the opportunity to appeal your assessment every year without jumping through any hoops. The only reason to file a return of real property is now to tell the assessors what they should already know, like you added a swimming pool last year.
This is Georgia's new market value definition as applied to property taxes: Transaction carried out by unrelated or unaffiliated parties, as by a willing buyer and a willing seller, each acting in his or her own self-interest, including, but not limited to a distress sale, short sale, bank sale, or sale at public auction. This is what is now called an arm's length, bona fide sale.
Obviously these distress sales have been having a big impact on value in many neighborhoods in Georgia and around the Country. Apparently the tax assessors did not see these distress sales as having an impact and they chose not to lower values as a result. The Georgia legislature heard enough and have now forced the assessors to consider these sales.
Additional information from the Bill:
The assessors shall apply the following criteria when determining the fair market value of real property:
1. Decreased value of the property based on limitations and restrictions resulting from the property being in a conservation easement
* Existing zoning of property
- Existing covenants or restrictions in deed dedicating the property to a particular use
* Existing use of property, including any restriction or limitation on the use of property resulting from state or federal law or rules or regulations adopted pursuant to the authority of state or federal law
5. Existing covenants or restrictions in deed dedicating the property to a particular use, and
* Any other existing factors provided by law or by rule and regulation of the commissioner deemed pertinent in arriving at fair market value.
So SB 346 has forced the assessors to use what?s ?here and now? and not what ?could be? when determining fair market value. Part 2 of this article will focus on all of the other changes to the Georgia property tax law.
In Georgia, there is a form called the Taxpayers Return of Real Property. Real property owners are required to return their real property for taxation, similar to the way business owners return their taxable personal property in many states. Most Georgia counties have modern tax assessment departments which are fully capable of discovering or updating taxable real property descriptions, but the requirement to return your real property for taxation remains on the books. So is the option of assessing back taxes and penalties if you do not return improvements to real property and the assessor doesn't "discover" it in a timely manner. You do not, however, have to return a value every year, as the law allows for this by saying that if a return is not filed you have, in effect, returned the previous year's assessment.
The Taxpayer's Return of Real Property form (PT-50R) was also used to generate an assessment notice. If you returned a value that the assessors did not agree with, they had to send you an assessment notice at their value that you could appeal. This was important because the way the Georgia property tax law reads, you have to receive a notice before you can appeal in any tax year.
This reason for filing a taxpayer return of real property no longer exists however. Senate Bill 346 requires that starting in 2011, every property owner receive an assessment notice every year. That means you will have the opportunity to appeal your assessment every year without jumping through any hoops. The only reason to file a return of real property is now to tell the assessors what they should already know, like you added a swimming pool last year.
This is Georgia's new market value definition as applied to property taxes: Transaction carried out by unrelated or unaffiliated parties, as by a willing buyer and a willing seller, each acting in his or her own self-interest, including, but not limited to a distress sale, short sale, bank sale, or sale at public auction. This is what is now called an arm's length, bona fide sale.
Obviously these distress sales have been having a big impact on value in many neighborhoods in Georgia and around the Country. Apparently the tax assessors did not see these distress sales as having an impact and they chose not to lower values as a result. The Georgia legislature heard enough and have now forced the assessors to consider these sales.
Additional information from the Bill:
The assessors shall apply the following criteria when determining the fair market value of real property:
1. Decreased value of the property based on limitations and restrictions resulting from the property being in a conservation easement
* Existing zoning of property
- Existing covenants or restrictions in deed dedicating the property to a particular use
* Existing use of property, including any restriction or limitation on the use of property resulting from state or federal law or rules or regulations adopted pursuant to the authority of state or federal law
5. Existing covenants or restrictions in deed dedicating the property to a particular use, and
* Any other existing factors provided by law or by rule and regulation of the commissioner deemed pertinent in arriving at fair market value.
So SB 346 has forced the assessors to use what?s ?here and now? and not what ?could be? when determining fair market value. Part 2 of this article will focus on all of the other changes to the Georgia property tax law.
About the Author:
Dan T. Jones is a real estate professional and has been appealing property tax assessments for 7 years. To learn more about commercial property tax appealsor Georgia residential tax appealsvisit his website fair-assessments.com.
1 comment:
Fight Property Taxes
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