Ad Valorem Tax Process
Ad valorem tax, more commonly known as property tax, is a large source of revenue for local governments in Georgia. The basis for ad valorem taxation is the fair market value of the property, which is established as of January 1 of each year. The tax is levied on the assessed value of the property which, by law, is established at 40% of the fair market value unless otherwise specified by law (O.C.G.A. 48-5-7). Fair market value, means "the amount a knowledgeable buyer would pay for the property and a willing seller would accept for the property at an arm's length, bona fide sale. "(O.C.G.A. 48-5-311) The amount of tax is determined by the tax rate (mill rate) levied by various entities (one mill is equal to $1.00 for each $1,000 of assessed value, or .001).
Several distinct entities are involved in the ad valorem tax process:
The State Revenue Commissioner is responsible for examining the tax digests of counties in Georgia in order to determine that property is assessed uniformly and equally between and within the counties (O.C.G.A. 48-5-340). In addition, the State levies ad valorem tax each year in an amount which cannot exceed one-fourth of one mill(.00025).
The County Board of Tax Assessors, appointed for fixed terms by the county commissioners, is responsible for the appraisal, assessment, and the equalization of all assessments within the county. They notify taxpayers when changes are made to the value of property, receive and review all appeals filed, and insure that the appeal process proceeds properly. In addition, they approve all exemptions claimed by the taxpayer.
The County Board of Equalization, appointed by the Grand Jury, is the body charged by law with hearing and adjudicating administrative appeals to property values and assessments made by the Board of Tax Assessors
The Board of County Commissioners, an elected body, establishes the annual budget for county government operations and levies the mill rate necessary to fund the portion of the budget to be paid for by ad valorem tax.
The Rome City Commission, an elected body, establishes the annual budget for the city government operations and the Rome City School budget, and levies the mill rate necessary to fund the portion of the budget to be paid for by ad valorem tax.
The County Board of Education, an elected body, establishes the annual budget for school purposes and adopts the mill rate necessary to fund the portion of the budget to be paid for by ad valorem tax.
The County Tax Commissioner, an elected office established by the Constitution, is the official responsible for performing all functions related to billing, collecting, accounting for and disbursing ad valorem taxes collected in this county. The Tax Commissioner also serves as an agent of the State Revenue Commissioner for the registration of motor vehicles.
Generally, Floyd County property taxes are due by November 15th. If taxes are not paid on the property, it may be levied upon and ultimately sold. When mailing in tax payments a United States Postal Service postmark will be accepted (not metered post marks). Taxes for the City of Rome are included on the county tax bill.
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Taxpayers are required to file at least an initial tax return for taxable property (both real and personal property) owned on January 1 of that tax year. The tax return is a listing of the property owned by the taxpayer and the taxpayer's declaration of the value of their property.
Property tax returns must be filed with the Board of Tax Assessors between January 1 and April 1 of each year. (Please note: the filing deadline for homestead exemption is also April 1). After the taxpayer has filed the initial tax return for real property, the law provides for an automatic renewal of that return each succeeding year at the value determined for the preceding year and the taxpayer is required to file a new return only as additional property is acquired, improvements are made to existing property, or other changes occur. Personal property tax returns are required to be filed each year.
A new return, filed during the return period, may also be made by the taxpayer to declare a different value from the existing value where the taxpayer is dissatisfied with the current value placed on the property by the Board of Tax Assessors. This initiates the taxpayer's appeal process if the declared value is not accepted by the Board of Tax Assessors.
When the Board of Tax Assessors changes the value of property from the value in place for the preceding year or from the value that was returned by the taxpayer for the current year, a notice of that change must be sent to the property owner. The property owner desiring to appeal the change in value must do so within 45 days of the date of mailing of this assessment notice. The assessment appeal may be made on the basis of the taxability of the property, the value placed upon the property, or the uniformity of that value when compared to other similar properties in the county. Additionally, the appeal should not be based on any complaint about the amount of taxes levied on the property.
The appeal is filed with the Board of Tax Assessors who again reviews their valuation and the appeal filed and informs the taxpayer of its decision. If the taxpayer remains dissatisfied, the appeal is forwarded to the County Board of Equalization. A hearing is scheduled and conducted and the Board of Equalization renders its decision. If the taxpayer is still dissatisfied with the decision, an appeal to Superior Court may be made. In lieu of an administrative appeal with the Board of Equalization, an arbitration method of appeal is also available to the taxpayer. The Board of Tax Assessors can provide details regarding this procedure
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Homestead exemptions have been enacted to reduce the burden of ad valorem taxation for Georgia homeowners. The exemptions apply to homestead property owned by the taxpayer and occupied as his or her legal residence. Homestead exemptions are deducted from the assessed value of the qualifying property (40% of the fair market value).
To receive the benefit of the homestead exemption the taxpayer must file an initial application. In Floyd County the application is filed with the Tax Assessor's Office. First time homeowners need to bring a copy of their warranty deed to insure their application is filed correctly. With respect to all of the homestead exemptions the Board of Assessors makes the final determination as to eligibility; however, if the application is denied the taxpayer must be notified and an appeal procedure is then available to the taxpayer.
Georgia law allows for the year-round filing of homestead applications but the application must be received by April 1 of the year for which the exemption is first claimed by the taxpayer. Homestead applications received after that date will be applied to the next tax year.
Once granted, the homestead exemption is automatically renewed each year and the taxpayer does not have to apply again unless there is a change of residence, ownership, or the taxpayer seeks to qualify for a different kind of exemption.
Under authority of the State Constitution several different types of homestead exemptions are provided. These are called State Exemptions. In addition, local governments are authorized to provide for increased exemption amounts. These are called Local County Exemptions. Floyd County has such local county exemptions. The Local County Exemptions supersede the State Exemptions when the Local Exemption amount is greater than the State Exemption amount. The Tax Commissioner's office and Tax Assessor's Office can answer questions regarding the standard exemptions as well as any local exemptions that are in place.
Available Floyd County Homesteads (these are State & Local exemptions combined):
- No income requirements
- $2,000 for State and School Purposes
- $5,000 for County purposes
- Rome and Floyd County have a homestead freeze for County and City taxes. As market values of homestead properties increase, the homestead exemption will increase in an equal amount. The frozen value stay in place until the property is sold or a new deed is filed on the property.
- Must be 100% disabled-service connected
- Letter from Veteran Affairs verifying disability
- Un-remarried surviving spouse or minor children may also qualify
- Currently this exemption amount is $50,000
Rome/Floyd County Senior School Tax Exemption:
Local School Exemption age 65
Homeowners 65 and older as of January 1st, qualifying to receive a standard homestead exemption, with no income requirements will receive an exemption of $40,000 of the assessed value of your homestead residence, garage, and 1 acre of land from school tax liability.
Senior State Exemption
Owner(s) must be 65 as of January 1. This exemption will exempt the owner(s) from state tax on the home and up to ten (10) acres of land. Once you qualify for one of the age 65 local exemptions you will automatically receive this exemption.
Local School Exemption age 62
Owner must be 62 prior to January 1 of the year applied for. Total income of both spouses and any other family member living in the residence cannot exceed $25,000 from all sources, including social security and pensions if living in the County or $30,000 in the City. The exemption is the greater of $10,000 or one-half of the assessed value of your homestead residence, garage, and one acre of homestead land from school liability.
Local School Exemption #2
Owner must be 75 prior to January 1 of the year applied for .Qualifies homestead properties with the total income of both spouses and any other family member living in the residence not exceeding $30,000 from all sources, including social security and pensions. The exemption is the total assessed value of your homestead residence, garage, and one acre of homestead land from school tax liability.
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Homeowners Tax Relief Grant
The HTRC (Homeowner's Tax Relief Credit) is the result of the homeowner's tax relief enacted by the Governor and the General Assembly of the State of Georgia in 1999. The grant, appropriated by the General Assembly and the Governor for the last several years to counties, cities and schools, had given tax relief to homeowners in the form of a credit on their tax bills. For the 2009 tax year, the Governor and General Assembly did not fund the Homeowners Tax Relief Grant. Declining state revenues during the current recession means there is no money for the State to give the tax relief to homeowners. Therefore, there will not be a credit for this grant on 2009 tax bills on properties with homestead exemption. According to legislation passed in 2009 (House Bill 143), the grant will only be made available in the future if state revenues grow at least 3% plus the rate of inflation. As a result, many Georgia homeowners will see a property tax increase of $200 to $300 on their 2009 tax bills.
Property Tax Deferral Program
In addition to the various homestead exemptions that are authorized, the law also provides a Property Tax Deferral Program whereby qualified homestead property owners 62 and older with gross household income of $15,000 or less may defer but not exempt the payment of ad valorem taxes on a part or all of the homestead property. Generally, the tax would be deferred until the property ownership changes or until such time that the deferred taxes plus interest reach a level equal to 85% of the fair market value of the property.
Specialized and Preferential Assessment Programs
Two general types of specialized or preferential assessment programs are available for certain owners of certain types of property. One of these programs authorizes assessment at 30% rather than 40% of fair market value for certain agricultural properties being used for bona fide agricultural purposes.
The second type of preferential program is the Conservation Use program which provides that certain agricultural property, timber land property, environmentally sensitive property, or residential transitional property is to be valued and assessed for ad valorem tax purposes at its current use value rather than its fair market value.
Each of these specialized or preferential programs requires the property owner to covenant with the Board of Tax Assessors to maintain the property in its qualified use for at least 10 years in order to qualify for the preference. The Board of Tax Assessors can explain the ownership and use restrictions regarding property qualifying for either of these programs.
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Rehabilitated and Landmark Historic Property
Historic property that qualifies for listing on the Georgia National Register of Historic Places may qualify for preferential assessment. The preferential assessment shall extend to the building or structure, the real property on which the building or structure is located, and not more than two acres surrounding the building or structure. The Board of Tax Assessors can explain the ownership and use restrictions regarding property qualifying for this assessment.
Property which qualifies for participation in the State's Hazardous Site Reuse and Redevelopment Program and which has been designated as such by the Environmental Protection Division of the Department of Natural Resources may qualify for preferential assessment. This special program provides for the preferential assessment of environmental and contaminated property by freezing the value for ten years as an incentive for developers to clean up the property and return it to the tax rolls. The Board of Tax Assessors can explain the ownership and use restrictions regarding property qualifying for this assessment.
Standing timber is not taxed until sold or harvested, at which time it is taxed based upon 100 percent of its fair market value. This value is then multiplied by the appropriate mill rate to determine the tax amount due.
Mobile/Manufactured Home Permits
Owners of mobile homes that are located in Floyd County on January 1 must pay the ad valorem taxes on the home by April 1 of each year and obtain their location permit at that time. Failure to pay the taxes and obtain the permit will result in a 10% tax penalty, issuance of a citation for appearance in Floyd County Magistrate Court or possible sale of the mobile/manufactured home.
Mobile home owners desiring to declare a different value from the existing value on the home have 45 days to file an appeal with the Board of Tax Assessors. If a taxpayer is dissatisfied with the value change or corrections, the taxpayer has the right to appeal to the Board of Equalization within 21 days of the date of the notice.
Freeport Exemptions for Businesses
Manufacturers may qualify for Freeport Exemption on one or more of three categories. The categories are raw goods, goods in process and manufactured goods stored in warehouse to be shipped out of state. Specific detailed information is available and applications must be filed with the Board of Tax Assessors between January 1st and April 1st each year.
For further information regarding property taxation in Georgia, please visit the State of Georgia Local Government Services Division website at http://www.etax.dor.ga.gov.
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