Brookhaven and Atlanta get a sign of good news
Lean times lighten property tax load
By Tom Opdyke
The Atlanta Journal-Constitution
Published on: 07/07/08
Here’s a weak ray of sun in a cloudy economy: The taxable value of most metro Atlanta homes is not going up this year.
Reflecting the extended slump in homes sales, it means that unless you made improvements or additions, your tax office doesn’t think your home’s value has increased. It also means your taxes could fall by a sliver —- probably less than $10 annually —- unless your county increases its millage.
As counties finalize their tax digests —- the value of all commercial, personal and residential property —- for the Aug. 1 state deadline, most metro governments, with the exception of Forsyth County, are reporting fewer assessment increases than taxmen have seen in two decades.
Tax bases are still rising in metro counties because of increases in assessed valuation for commercial property, new construction and a boost in a small percentage of residential property. But nothing like prior years.
“Until this current market, a saying of mine was, there was not a residential property going down in value. In this market, yes, there is,” Gwinnett County tax assessor Steve Pruitt said.
With the exception of Fulton County, which showed about a 16 percent increase in its digest and increased commercial assessments by a median 44 percent, most metro counties are reporting about 6 percent growth, some less.
The storm cloud surrounding this silver lining: slower growth in the tax base could foreshadow an increase in taxes or service cuts in coming years.
Because the assessments are based on market value as of Jan. 1, 2007 —- and the Standard & Poor’s/Case-Shiller Home Price Index shows the Atlanta resale market has fallen 6.5 percent since March 2007 —- assessors foresee smaller tax base growth in 2009 unless sales heat up.
“I do think 2009 will be a lot more challenging than 2008 for local government,” said John Scott, chief assessor in Bullock County and executive director of the Georgia Association of Assessing Officials.
Only property owners whose valuation changes get a notice from the tax assessor, and not all properties are evaluated every year.
Cobb and DeKalb counties mailed the fewest notices of assessment changes in two decades.
“It would be normal for us to mail out in excess of 100,000 notices on an average year. This year it was about 26,000,” said Tom Stump, interim chief assessor in DeKalb. For about 1,700 who received notices, assessment went down.
Forsyth sent about 56,000 notices, with about 43,000 showing increases. But they were the exception.
Cobb’s Board of Tax Assessors in March ordered no increases in residential assessments unless a property had been improved —- an addition, a new bathroom or the like.
Instead of sending out the year’s typical 70,000 notices —- about one-third of the county’s residential stock —- Cobb sent about 13,000, and about 2,300 were notices of decreased valuation, said chief assessor Phil Hogsed.
Most assessors said the valuation decreases were not in a particular area or city. In some areas, the types of houses in the same subdivision have changed.
In the Hays Farm subdivision in west Cobb, larger houses that sold in the $500,000 range are now near smaller homes by a different builder that sell in the $300,000s.
While the assessors are not permitted by law to use foreclosures as part of their calculations, they are sensitive to the impact of foreclosures on communities.
“If 30 percent of the sales in a neighborhood were foreclosures, we tried not to make any adjustments,” said Rodney McDaniel, Clayton County’s chief assessor.
FREQUENTLY ASKED QUESTIONS
Q: I have foreclosures in my neighborhood that I think are dragging down my property value, why is it not reflected in my real estate assessment?
A: Foreclosures are not directly considered in property assessments because the taxman is required by law to consider only sales between a willing buyer and seller. A foreclosure is viewed as a forced sale.
Q: How do I appeal my property reassessment?
A: Most counties have an appeal process outlined on the assessment notice you receive. An appeal must be mailed within 30 to 45 days of the notice’s mailing date, depending on the county. Counties often provide a form on their Web site so you can file electronically. Go to your county Web site and click on the link for the Board of Tax Assessors.
Q: If I didn’t get a reassessment notice but believe my property value has diminished, what can I do?
A: Probably nothing this year. Early next year —- the deadline can be March 1 or April 1, depending your county —- go to your tax office and file a real estate tax return. You also can obtain the form by going to http://www.etax.dor.ga.gov/ptd/adm/forms/pt.aspx and downloading form PT-50R. Tell the assessors what you think your property is worth. Assessors will review your property and your will get an assessment.
A QUESTION OF VALUE
A tax digest, which includes residential, commercial and personal property assessed at 40 percent of market value, is set by the county appraisers. They determine the market value of property but do not set taxes. Once approved by the state, it is used by the county, its cities and the public school systems as the basis for setting tax millage. Here is what metro counties reported:
Clayton
2007……$8.1 billion
2008……$8.5 billion
Increase..5.9 percent
Cobb
2007……$26 billion
2008……$27.6 billion
Increase..6.2 percent
DeKalb
2007……$23 billion
2008……$24.1 billion
Increase..4.8 percent
Fulton
2007……$54.4 billion
2008……$63 billion
Increase..15.8 percent
Gwinnett
2007……$27 billion
2008……$28.5 billion
Increase..5.6 percent
