What January 1 means for local taxes

January 1 is a significant date for property taxes and business licenses. Here are a few things that homeowners and business owners should keep in mind for the new year.

Property owners 

Assessments. Property assessments for 2017 conducted by DeKalb County will be based on the status of the property as of January 1. For example, new developments and improvements made prior to January 1 will be factored into 2017 assessments by DeKalb, but improvements made after January 1 would not. If something about your property has changed since last year, such as a demolition, you should file a return with the DeKalb County assessors office between now and April 1 to ensure that the assessors have current information.

Homestead exemptions. Qualifying for age-based homestead exemptions for your property taxes depends on the age of the homeowner as of January 1. If you turned 62, 65, 70, or 80 prior to January 1, you may have become eligible for one or more homestead exemptions offered by Decatur. Homestead exemptions can be applied for with the city between now and March 15, 2017, to ensure that any new exemptions on your account appear on your 1st installment tax bill which will be mailed out by April 1. Call 404-370-4100 for details.  You should also check with DeKalb to determine whether you have become eligible for any additional exemptions with their office.

Billing. Property owners should note what tax officials mean by “the first-of-the-year owner,” or the “January 1 owner.” DeKalb County records the owner as of January 1 and the current owner if ownership changes later in the year. Many times, we are questioned about why a bill or a delinquent notice was sent to the January 1 owner rather than the current owner. Generally speaking, Decatur attempts to notify the current owner of bills that are owed. But there can be delays in reflecting current ownership information, and the January 1 owner may be considered to be responsible for the taxes that year depending on the terms at closing, or at least is responsible for notifying the current owner of any bills that the January 1 owner received for the property. 

Business owners

Although business license payments for 2017 can be made until January 31, please note that 2016 business license certificates in Decatur have expired. Call the Decatur business license office at 678-553-6743 for renewal options.

If your business has more than 10 employees as of January 1, you will need to let the Decatur business license office know your E-Verify number if you haven't already done so. State law says that the E-Verify requirement is based on the number of employees a business had as of January 1.

If you owned a business that closed in 2016 or moved out of Decatur or DeKalb, you should notify the DeKalb County assessors office at 404-371-0841 to ensure that you do not receive a business inventory tax assessment notice and tax bills from DeKalb and Decatur in 2017. If your business is open for the beginning of 2017 you will receive an assessment and tax bill for 2017 even if your business closes or moves later this year.

Lawyer taxes due Friday

Occupation taxes for attorneys in Decatur are due on or before Friday, December 30.  Each lawyer is responsible for paying $425 annually.  The tax can be paid online by visiting www.decaturgatax.com, clicking on “Occupation Tax” on the upper left, selecting 2016 as the year, and entering your name as it appears on your bill.

Decatur offers discount on lawyers' occupation taxes

Last week, Decatur billed over 250 attorneys practicing law in the city. The annual occupation tax bill is $400 plus a $25 administration fee. For lawyers who pay their tax by Nov. 30, the City of Decatur will discount the bill by waiving the $25 fee.  Revenues from the tax are used to provide quality services to the public.

The tax can be paid online. Decatur's occupation tax website allows for payments by Visa, MasterCard, Discover, American Express, PayPal, or e-check. No additional fees are charged for paying online. To use this option, go to www.decaturgatax.com, click on “Occupation Tax” on the upper left, select 2016 as the year, and enter your name as it appears on your bill. Once you’ve accessed your record, click “Renew,” and you’ll see your option to pay. If paying before Nov. 30, adjust your payment amount to $400.

If you or someone in your firm practices law in Decatur but have not received a bill, or if you have any questions, please call our office at 678-553-6743 or email us at taxes@decaturga.com.

Lawyer taxes in Decatur become delinquent

Attorney Bill Payment Final Deadline

Lawyers practicing in Decatur must pay a $425 occupation tax annually. The 2015 tax was due by Dec. 31, 2015. A three-month grace period expires today. Lawyers who have not paid by today become delinquent and subject to escalated collection activities and will be reported to the State Bar of Georgia. Revenues from the tax are used to provide quality services to the public. For further information please call 404-370-4100.

Lawyer taxes due tomorrow

Occupation taxes from lawyers practicing in Decatur, Georgia, are due by tomorrow, December 31, for tax year 2015.  The bill is $425 payable to City of Decatur from each lawyer.  The $425 charge is not per law firm, it is per individual attorney.  The tax is not a regulatory fee; the tax is strictly for revenue purposes and does not constitute regulation of the practice of law.  Revenues from the tax are used to provide quality services to the public.

Decatur bills 900 businesses

Decatur has invoiced nearly 900 local businesses for business license renewal fees for 2016. This is in addition to nearly 300 lawyers who were invoiced a month earlier. These occupation taxes can be paid online at decaturgatax.com. This website allows for payments by any major credit card, PayPal, or e-check with no extra fees.  If you own a business or practice a profession within Decatur's city limits and you have not received your invoice, please call 404-370-4100. Revenues from occupation taxes are used to provide quality services to the community.

Decatur sends bills to over 250 lawyers for occupation taxes

Lawyer invoicing:
Decatur sent bills to local attorneys late last week for occupational taxes owed for 2015. If you practice locally and you do not receive a bill by November 6, please contact our office to confirm your account information and mailing address. The bills are based on existing city records and state bar directory records. The annual bill is for $400 plus a $25 administration fee. Revenues are used to provide quality services to the public. If you no longer practice law in the City, please let us know. You may also check the state bar directory at gabar.org and update their address record for you if necessary.

Payment options:
Attorneys are encouraged to pay this tax online. Our website allows for payments by Visa, MasterCard, Discover, American Express, or PayPal. No additional fees are charged for paying online—just the $425 amount. There is no registration process, no login or user name, no passwords, and no PINs. Just go to www.decaturgatax.com, click on “Occupation Tax” on the upper left, select 2015 as the year, enter your name as it appears on your bill and click “Go.” Once you’ve accessed your record, you’ll see your option to pay. Payment is due by Dec. 31, 2015. If you prefer, payments can be made in person at 509 N. McDonough St. by cash, check, or credit card; or by mail to City of Decatur, PO Box 220, 30031. If paying by mail, please enclose the bottom portion of your invoice so we can apply your payment to the right record.

New prompt-pay incentive
Decatur’s occupation tax ordinance has been amended recently. If you pay your tax by Nov. 30, the City of Decatur will waive the $25 administration fee. Please pay online or mail in a payment of $400 by Nov. 30 to take advantage of this discount. Payment of $425 will be necessary if paying after Dec. 1.

Authority to tax:
Some attorneys practicing law in Decatur have questioned the City’s occupation tax on the basis of Barnes v. City of Atlanta. Barnes holds that such taxes must be revenue measures only, not regulatory in nature. Decatur’s occupation tax ordinance expressly states that the occupation tax is levied “for revenue purposes only and is not for regulatory purposes” (Sec. 22-15).

Last chance to renew business license without penalty

The grace period for late business license renewal payments in Decatur for 2015 is expiring. A 10 percent penalty and 1 percent interest per month will accrue on unpaid balances after Apr. 30, 2015.

All 2014 business licenses in Decatur expired on January 30, 2015. If a business has not paid for its 2015 license and is still open in Decatur, that means that the business is operating without a business license.

If your business has closed or moved since 2014, please let us know to update our records and prevent escalated collection activities which will begin in May. If you need any assistance, please call the business license office at 404-370-4100.

10 business days until occupation taxes become delinquent

All 2014 business licenses in Decatur expired on January 30, 2015. If a business has not paid for its 2015 license and is still open in Decatur, that means that that business is operating without a business license. Please remit your occupational tax payment (and immigration-related documents if applicable) within the next 10 days to renew your 2015 license. A grace period during which no late fees accrued expires at the end of this month.  A 10 percent penalty and 1 percent interest per month will accrue on unpaid balances after Apr. 30, 2015.

If your business has closed or moved since 2014, please let us know to update our records and prevent collection activities. If you need any assistance, please call the business license office at 404-370-4100.

Unpaid attorney taxes for 2014 are now considered delinquent

Each attorney practicing in the City of Decatur is responsible for a $425 annual occupational tax. The deadline for the 2014 lawyer tax was December 30, 2014, with a grace period for penalties and interest through March 31, 2015. Our Revenue Division has attempted to collect payment on all accounts through invoices and reminder notices, but several lawyers still owe the tax. The 2014 debt is now 90 days overdue. The Revenue Division has now added a 10 percent penalty to the amount owed for 2014. If this message pertains to you, please contact the Revenue staff at 404-370-4100 to confirm the current amount due and remit that amount no later than April 30, 2015, to prevent the accrual of additional monthly interest and escalated collection activity.

What January 1 means for local taxes

With many local taxes—especially property taxes—everything significant hinges on January 1.  Here are a few things about this key date that homeowners and business owners should consider in order to understand tax liability for the new year.

Property taxpayers
Property assessments for 2015 conducted by DeKalb County will be based on the status of the property as of January 1. For example, new developments and improvements made prior to January 1 will be factored into 2015 assessments by DeKalb, but improvements made after January 1 would not. Properties annexed into Decatur in 2014 will be taxed by Decatur in 2015, but properties annexed in 2015 wouldn’t be taxed in Decatur until 2016.

If the status of your property has changed since last year, you should file a return with the DeKalb County assessors office between now and April 1. If you own or owned a business that closed in 2014 or moved out of Decatur or DeKalb, you should also notify the DeKalb County assessors office to ensure that you do not receive an assessment notice and tax bills from DeKalb and Decatur in 2015. If your business is open for the beginning of 2015 you will receive an assessment and tax bill for 2015 even if your business closes or moves later this year.

Property owners should also note what tax officials mean by “the first-of-the-year owner,” or the “January 1 owner.” DeKalb County records and their website show both the owner as of January 1 and the current owner if ownership changes later in the year. Many times, we are questioned about why a bill or a delinquent notice was sent to the January 1 owner rather than the current owner. Generally speaking, Decatur attempts to notify the current owner of bills that are owed. But there can be delays in reflecting current ownership information, and technically, the January 1 owner may be considered to be responsible for the taxes that year depending on the terms at closing, or at least be responsible for notifying the current owner of any bills that the January 1 owner received for the property.

Lastly, when you file your 2014 federal income taxes, if you will be itemizing deductions including local property taxes paid, you can claim payments actually made during calendar year 2014.  If you're paying your 2014 property taxes late (for example, if you pay your 2nd installment 2014 Decatur tax bill on Jan. 8, 2015), you can't deduct that on your 2014 income taxes.  But please consult a tax professional for further guidance on that.

Homestead exemption applicants
Qualifying for age-based homestead exemptions for your property taxes depends on the age of the homeowner as of January 1. If you turned 62, 65, 70, or 80 prior to today, you may have become eligible for one or more homestead exemptions offered by Decatur. Homestead exemptions can be applied for with the city between now and April 1, but preferably no later than March 16, 2015 to ensure that any new exemptions on your account appear on your 1st installment tax bill which will be mailed out by April 1. You should also check with DeKalb to determine whether you have become eligible for any additional exemptions with their office.

Occupation taxpayers
If your business has more than 10 employees as of today, you will need to file an E-Verify form with our office prior to the next renewal of your business license, because state law references the number of employees as of January 1, not as of the time you are renewing your license.

Also, Decatur’s occupation tax ordinance says that occupation taxes are payable by January 2 of each year but that the taxes are not considered delinquent until January 31, which is why the Revenue Division puts a January 31 deadline on business license renewal invoices.

Reminder: lawyers' occupation taxes due by Dec. 31

Occupation taxes from attorneys practicing in Decatur are due by December 31 in accordance with City ordinance, Art. II, Sec. 22-26(b).  Our office will be open from 8:00 a.m. until 5:00 p.m. on New Year's Eve.

Payment options:
Attorneys are encouraged to pay this $425 tax online. Our website allows for payments by Visa, MasterCard, Discover, American Express, PayPal, PayPal Credit, or electronic check. No additional fees are charged for paying online—just the principal amount. There is no registration or login process. Just go to www.decaturgatax.com, click on “Occupational Tax” on the left side, select 2014 as the year, and enter your name as it appears on your bill. Once you’ve accessed your record, click "Renew," enter some basic information, and you’ll see your options to pay.  You can also use this website to access a copy of your occupation tax certificate.

If you prefer, payments can be made in person at City Hall at 509 N. McDonough St. by cash, check, or credit card; or by mail to City of Decatur, PO Box 220, 30031. If paying by mail, please enclose the bottom portion of your invoice so we can apply your payment to the right record.

Authority to tax:
Barnes v. City of Atlanta holds that local occupation taxes on attorneys must be revenue measures only, not regulatory in nature. Decatur’s occupation tax ordinance expressly states that the occupation tax is levied “for revenue purposes only and is not for regulatory purposes” (Sec. 22-15).

Notes for Veterans Day

Partial exemption from property taxes
The City of Decatur provides a homestead exemption specific to veterans with disabilities in accordance with state law.  If applicants for the disabled veteran exemption provide us with a letter indicating 100 percent disability from the Department of Veterans Affairs and file an application card with our office, the exemption can save you up to $3,000 a year on your Decatur property tax bill.  The exemption is also available to unremarried surviving spouses.  Please note that this exemption is based on the disability status of veterans, and is separate from the exemption that disability-based exemption offered by DeKalb County.

Exemption from business license fees
Veterans discharged under honorable conditions from the U.S. military who have at least a 10 percent disability from wartime or a 25 percent service-connected disability from peacetime whose income is exempt from state taxation are also eligible for exemption from occupation taxes. In other words, you do not have to pay for a business license in Decatur if you meet those criteria. If you own a business in Decatur and qualify for this occupation tax exemption, please contact my office at 404-370-4100 so we can adjust your account.

Veterans Day in Decatur
A remembrance service honoring those who served in the military who are buried in the Decatur Cemetery will take place onsite tomorrow at 11 a.m.

Decatur City Hall will be open for business on November 11. Decatur schools, the post office, local banks, and DeKalb County offices will be closed.

Attorneys billed for occupation taxes

Lawyer invoicing:
Decatur sent bills to local attorneys late last week for occupational taxes owed for 2014. The bills are based on existing city records and state bar directory records. The annual bill is for $400 plus a $25 administration fee. Revenues are used to provide quality services to the public. If you no longer practice law in the City, please let us know. You may also check the state bar directory at gabar.org and update their address record for you if necessary.

Payment options:
Attorneys are encouraged to pay this tax online. Our website allows for payments by Visa, MasterCard, Discover, American Express, or PayPal. No additional fees are charged for paying online—just the $425 amount. There is no registration process, no login or user name, no passwords, and no PINs. Just go to www.decaturgatax.com, click on “Occupation Tax” on the upper left, select 2014 as the year, and enter your name as it appears on your bill. Once you’ve accessed your record, you’ll see your option to pay. Payment is due by Dec. 31, 2014.

If you prefer, payments can be made in person at 509 N. McDonough St. by cash, check, or credit card; or by mail to City of Decatur, PO Box 220, 30031. If paying by mail, please enclose the bottom portion of your invoice so we can apply your payment to the right record.

Authority to tax:
Some attorneys practicing law in Decatur have questioned the City’s occupation tax on the basis of Barnes v. City of Atlanta. Barnes holds that such taxes must be revenue measures only, not regulatory in nature. Decatur’s occupation tax ordinance expressly states that the occupation tax is levied “for revenue purposes only and is not for regulatory purposes” (Sec. 22-15).

6 percent of Decatur businesses renewed online

From October 2013 through June 2014, 6 percent of businesses renewed their Decatur license by paying their occupation tax online. Of the 1,485 businesses that paid occupation taxes during that time period, 87 of them used our website at www.decaturgatax.com/businesslicense.

That is already a higher rate of web payments than we receive for property taxes (which is about 2 percent of payments made), even though there is more awareness of our property tax website since it has been available for four years. This fiscal year we anticipate a higher percentage of online business license renewals because of 1) increased marketing and awareness of the website, 2) the affidavit upload field on the website is no longer a required field, and 3) we are having some upgrades made to the website.

Attorneys will receive their annual occupation tax bill at the end of this month, and businesses will receive their license renewal bills later in November.

Decatur presents tips for maximizing revenues at national conference

Each attorney practicing law in Decatur is responsible for paying a $425 annual occupation tax to the City. Historically, our collection rate for this group has been low, and in 2012 we began taking steps to improve collections.

Over a one year period we were able to boost tax compliance for this group from 69 percent up to an 86 percent. We used performance measurements to identify the opportunity for growth and implemented process improvements to get there. After that experience we described our efforts in a case study submitted to the Alliance for Innovation, and the topic was selected for presentation during their Transforming Local Government 2014 conference in Denver, Colorado.

I had the pleasure of making the presentation in April along with communications chief Linda Harris, city manager Peggy Merriss, and revenue supervisor Shaun Shabazz. After presenting our experiences Linda conducted an interactive session called “The Dog Ate My Tax Bill” to help attendees brainstorm different ways to overcome nonpayment of taxes or other revenues.

It was a lot of fun, and as Peggy noted afterward, those who attended our session were very engaged. Thanks to her, Linda, Shaun, our city attorney Bryan Downs, and the folks at TLG including Brandi Allen who all helped make it a success!

Our case study doesn’t seem to be available yet on the conference archive, but here’s the PowerPoint I presented. This is useful information for local governments and businesses that are trying to collect on difficult accounts:

5 ideas to overcome delinquent payments without offending your customers

Business license renewal deadline Jan. 31

Businesses in Decatur should pay their annual occupational tax by tomorrow. There will be a lengthy grace period for payments during which no penalties or interest will be charged, but businesses should renew by the deadline in order to maintain a valid license.

You can come to City Hall to renew, or you can mail in your renewal materials with the return envelope we enclosed with the invoice we sent you in November.

If you prefer to pay online, go to this site. For the year, select 2014 (except for lawyers, who should select 2013 instead). For the “business name,” enter your business's name it actually appears on your bill. Once you’ve found your record, click “renew” to pay. You'll be prompted to upload your notarized and completed immigration-related affidavits.

Paypal is our payment gateway, but you do not have to have a Paypal account to pay online. You'll want to check out as a guest, then Paypal will give you the option of selecting which type of credit card you want to use.  If you run into any difficulties online, please call us at 404-370-4100 and we'll try troubleshooting it.

Decatur's occupation taxes are levied on persons, partnerships, corporations, or other entities operating or engaging in an occupation, profession, or business within the city limits of Decatur. The City of Decatur uses profitability ratios to assign tax rates to six different classes of business ranging from $195 to $485 annually.

Attorney deadline in 10 days

If you are practicing law in Decatur, your annual occupation tax of $400 and administrative fee of $25 are due no later than Dec. 31.  This tax is for revenue purposes only.

Several lawyers have already taken advantage of our new web service which allows for payments to be made online by credit card with no additional fees. 

If you intend to pay online, go to this site.  For the year, change the selected year to 2013 (lawyers pay for the current year, while all other professionals and businesses pay for the upcoming year).  For the “business name,” enter your actual name as it appears on your bill (first name first, last name second).  Once you’ve found your record, click “renew” to pay.  Please do not select 2014 and do not search by the name of your law firm.

Decatur bills 638 insurance companies

Earlier this month, Decatur sent bills for $75 to 638 insurance carriers that write policies in the city.  Insurance companies can mail in their payments or--for the first time--pay by credit card online at www.decaturgatax.com/BusinessLicense.

State law says the license fee is imposed on insurance companies “for the privilege of engaging in the business of insurance” within Georgia’s cities.  The fee varies by city based on population in accordance with a state formula.

At $75 per carrier, Decatur’s insurance company billing for 2014 amounts to $47,850.  The fee payments represent about 10 percent of the city’s total occupational tax revenues, which go toward city operations and services.  During the last fiscal year, the city collected about $43,500 in license fees from insurance companies.

 
Our tax collection rate from insurance companies tends to be lower than other occupational tax types partly because of unpredictability and variation in the insurance market each year.  If an insurance company writes no business in Decatur in a given year, they are not required to pay the fee for that year.

In addition to their payment, insurance companies are required to file a notarized affidavit annually regarding their compliance with immigration laws.  If they renew online, they can just upload their affidavit rather than mailing it in.

Local, independent insurance companies are required to obtain a regular business license from City Hall which may run from $315 to $425 annually.

The city does not regulate insurance practices; Georgia’s insurance commissioner regulates insurance companies and licenses insurance agents.

 

City launches online payment option for lawyers

This year, for the first time, lawyers can pay their occupation tax online with a credit card from the convenience of their law office or home.

Each attorney practicing law in Decatur pays a $425 annual occupation tax to the city, which is billed on Oct. 31 and due no later than Dec. 31.

Our new online system allows for payments by Visa, MasterCard, Discover, American Express, and Paypal.  No additional fees are imposed for paying on the web--just the $425 amount. This is a pretty good deal for occupation taxpayers considering that other types of local government taxes often involve surcharges for online payments.

Users are not required to create an account.  There is no registration process, no login or user name, no passwords, and no PINs. 

To use the service, just go to decaturgatax.com and click on "Occupation Tax" on the upper left. Select 2013 as the year, search by "Business Name" and enter your name as it appears on your tax statement to pull up your record.  Once you've accessed your record, you'll see your option to pay.

We still accept cash, check, or charge in person, and checks through the mail.  But we encourage all lawyers to consider using the new online service.

The city also accepts online credit card payments for recreation programs, after-school and summer camp registration, parking tickets, commercial sanitation services, storm water drainage fees, and property taxes.  This latest addition to the city's online payment menu stems from the city's ongoing commitment to support local professionals and businesses through greater automation of services.

Online renewals for regular business license payments will be available later this year.