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. 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. " 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 .00005. This amount will be obsolete in tax year 2016.
• The Baker 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 Baker 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. (Note: An arbitration method of appeal is available to the taxpayer in lieu of an appeal to the board of equalization at the option of the taxpayer at the time the appeal is filed.)
• The Baker County Board of Commissioners 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 Baker 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 Baker 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. The Tax Commissioner does not set value or the millage rates.

Tax Bills

Property taxes are due Dec. 20th each year. 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).

For past due property taxes, interest will be added to your tax bill on the 21st of each month at a rate of prime plus 3% divided by 12 months. A FIFA will be filed in the Clerk of Courts office 30 days from the date on the delinquent notice. A 5% penalty is added after 120 days and every 120 days, thereafter (max 20%).

For past due mobile homes, interest will be added to your tax bill on the 16th of each month at a rate of prime plus 3% divided by 12 months. A 10% penalty is added April 2nd each year and a FIFA will be filed in the Clerk of Courts office 30 days from the date on the delinquent notice.

If you still remain unpaid, your account will be turned over to DTSi and admin/levy fees up to $215.00 will be added to your account. These fees will cover the cost of certified notices as well as a title search to prepare your property for tax sale. Your property will also be posted and photographed at some point before the sale. The four weeks prior to the sale your property will be advertised in the local newspaper with additional advertising cost added. We urge you to pay your taxes on time or make arrangements to avoid these additional fees.

Tax Returns

Taxpayers are required to file at least an initial tax return for taxable property (both real and personal property) owned on January 1 of the 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.

Personal property tax returns (PT-50p) are to be filed annually with the Board of Assessors without regard to change in value or use. Note: If you no longer own the listed items, you must contact the Tax Assessors office or you will be taxed on it.

Property tax returns for real estate must be filed with the Baker County Tax Assessor between January 1 and April 1 of each year where property has changed or been acquired. The filing deadline is April 1 of each year. The taxpayer may elect not to file a property tax return if they have no changes that would affect the value of their property from the previous year. Failure to file a required return will subject the taxpayer to a 10% penalty on the value of the property not returned plus interest and possibly penalties from the date the tax would have been due.

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.

Homestead Exemptions

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 – some exceptions to this rule apply and your Tax Commissioner can explain them to you. Homestead exemptions are deducted from the assessed value of the qualifying property (40% of the fair market value). Then, the millage rate is applied to arrive at the amount of ad valorem tax due.

To receive the benefit of the homestead exemption, the taxpayer must file an initial application. The application is filed with the Baker County 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. The deadline for filing an application for a homestead exemption in Baker County is April 1. 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. Baker 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.

The State exemptions include:

• The Standard Homestead Exemptionis available to all homeowners who otherwise qualify by ownership and residency requirements and it is an amount equal to $2,000 which is deducted from the 40% assessed value of the homestead property. The exemption applies to the maintenance and operation portion of the mill rate levy of the county and the county school system and the State mill rate levy. It does not apply to the portion of the mill rate levied to retire bonded indebtedness.
• The Standard Elderly School Tax Homestead Exemption is an increased homestead exemption for homeowners 62 and older where the net income of the applicant and spouse does not exceed $10,000 for the preceding year. A portion of Social Security income and certain retirement income are excluded from the calculation of the income threshold. This exemption applies to the school tax including taxes levied to retire bonded indebtedness. The amount of the exemption is up to $10,000 deducted from the 40% assessed value of the homestead property.
• The Standard Elderly General Homestead Exemption is available to homeowners who otherwise qualify and who are 65 and older where the net income of the applicant and spouse does not exceed $10,000 for the preceding year. A portion of Social Security income and certain retirement income are excluded from the calculation of the income threshold. This exemption, which is in an amount up to $4,000 deducted from the 40% assessed value of the homestead property applies to the county, school, and State tax and it does not apply to taxes levied to retire bonded indebtedness.
• Homestead Exemption for Senior Citizens is an amount equal to the actual levy for state ad valorem tax purposes on the residence and no more than 10 contiguous acres of land qualified age 65 and older.
• The Disabled Veterans Homestead Exemption is available to certain disabled veterans or to the un-remarried spouse or minor children in an amount up to $73,718 deducted from the 40% assessed value of the homestead property. This exemption applies to all ad valorem tax levies; however, it is restricted to certain types of very serious disabilities and proof of disability, either from the Veterans Administration or form a private physician in certain circumstances.
• The Surviving Spouse of Member of Armed Forces killed in Action Exemptionis available to the un-remarried surviving spouse of a member of the armed forces of the United States who was killed in or who died as a result of any war or armed conflict engaged in by the United States. The surviving spouse must furnish appropriate documentation from the Department of Defense that spousal benefits are received as a result of the death of the armed forces member.
• Peace Officer or Firefighter Homestead Exemption Exemption is available for surviving spouse of a peace officer or firefighter who was killed in the line of duty. The surviving spouse is exempt from the full value of the homestead with respect to all ad valorem.

Specialized and Preferential Assessment Programs

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. These exemptions must be applied for by April of each year.

• The Agriculture Preferential Assessment program is available for certain property owners of agriculture property. The property is assessed at 30% of fair market value rather than 40% of fair market. The property owner must enter a 10-year covenant with the Board of Assessors and penalties may apply is the covenant is breached.
• The Conservation Use Assessment program provides for an assessment based on a statutory ‘use-value’ as opposed to an assessment based on ‘fair market value.’ Qualified properties include certain agriculture land, timber land, environmentally sensitive property, or residential transitional property. The property owner must enter a 10-year covenant with the Board of Assessors and penalties may apply if the covenant is breached.
• The Agriculture Preferential Assessment provides for an ad valorem tax exemption for property primarily used for the production of trees, timber, or wood fiber products. The property may have secondary uses such as the promotion, preservation, or management of wildlife habitat; carbon sequestration; mitigation and conservation banking; or the production and maintenance of ecosystem products. This 15-year covenant agreement between the taxpayer and local Board of Assessors is limited to forest land tracts consisting of more than 200 acres. Penalties may apply if the covenant is breached.
• Rehabilitated and Landmark Historic Assessment includes property that qualifies for listing on the Georgia or National Register of Historic Places. This preferential assessment extends to the building and no more than two acres. Property under this special program must be certified by the Department of Natural Resources as rehabilitated historic property or landmark historic property. The exemption equals the difference between current fair market value and the higher of the acquisition cost or assessment of fair market value at the time the original 10-year covenant was entered.
• Brownfield Property Assessment includes 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. This program effectively freezes the taxable assessment for 10 years as an incentive for the developers to clean up contaminated property and return it to the tax rolls. It allows eligible owners to recoup the certain costs associated with the cleanup.

Mobile/Modular Home Permits

Owners of mobile homes that are located in Baker County on January 1 must pay the ad valorem taxes on the home by April 1st 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 and interest which is added April 2nd as well as issuance of a citation for appearance in Baker County Magistrate Court or possible sale of the mobile/manufactured home.

Bills for mobile/modular homes in Baker County are usually mailed January 2. All mobile homes must be registered in the Tax Assessors office. You must display your decal. If your decal is not displayed, a citation will be given. This is a fine up to $200 and a misdemeanor that will be handled in Magistrate Court. Contact the Tax Assessors’ office for more information at (229) 734-3012.

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.

Equipment, Machinery, and Fixtures

Equipment, machinery, and fixtures are assessed at 40 percent of fair market value. The tax assessor may value the equipment, machinery, and fixtures of a going business to reflect the fair market value of the business as a whole. When no ready market exists for the sale of equipment, machinery, and fixtures, a fair market value may be determined by resorting to any reasonable, relevant, and useful information available. This information may include, but is not limited to, the original cost of the property, depreciation or obsolescence, and any increase in value by reason of inflation.

Assessed Value and Appeals

In Georgia, property is assessed at 40% of the fair market value unless otherwise specified by law. (O.C.G.A. Sect; 48-5-7) Property is assessed at the county level. 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. Sect; 48-5-340)

The tax bills received by property owners will include both the fair market value and the assessed value of the property. 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. Sect; 48-5-2)

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 that does not agree with the appraised value on their tax bill and wants to appeal the change in value must do so within 45 days of the date of mailing of this assessment notice. (O.C.G.A. Sect; 48-5-311). 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. The appeal must be filed within the applicable time period and cannot be filed after that time. Additionally, the appeal should not be based on any complaint about the amount of taxes levied on the property.

Property owners can file an appeal with the Board of Assessors. If no agreement is reached, the appeal is automatically forwarded to the Board of Equalization. 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.

If the owner is absent from their residence because of duty in the armed forces, a friend or family member may file on behalf of said owner. Said notice shall be filed within 90 days of the notice of value from the Board of Assessors.

For further information regarding property taxation in Georgia, please visit the State of Georgia Local Government Services Division website at http://dor.georgia.gov/.