Tax blog update

Due to time constraints, new posts to this blog are on hold at this time. Please use the following resources for local tax information:

General tax information: www.decaturga.com/taxes

Online tax records and payments: www.decaturgatax.com

Main city blog for news and updates: thedecaturminute.com

Property owners and businesses can also contact the Revenue office directly at 678-553-6743.

County delegates authority to to waive penalties and interest

The Catoosa County board of commissioners has delegated the authority to waive penalties and interest for unpaid property taxes to the Catoosa County tax commissioner. Previously each decision to approve waivers were coming before the county board. Now the tax commissioner will be able to make these approvals on his own. From the Rome News Tribune:

...Tax Commissioner Gary Autry had adjustments made to how his office will handle penalties and interest fees on property taxes.

County Attorney Skip Patty proposed a resolution giving Autry the power to waive those charges for individuals if he sees fit.

"This would give the tax commissioner the ability to waive only the penalties and interest if the party's failure to pay was not due to willful neglect," Patty said.

In other words, Autry can decided on a case-by-case basis to waive those extra fees if a person accrued the extra debt due to some sort of hardship.

Patty said other counties like nearby Whitfield have this practice, but that long-time tax commissioner Sandra Self didn't want that responsibility, and left those decisions up to the Board of Commissioners.

"This resolution would prevent the board from having to handle each individual case," Patty said. "The tax commissioner would need to make a notation on each case and that would then become public record."

The board unanimously approved the resolution.

In Decatur, the authority to waive penalties and interest rests with the city manager or her designee. Some late payers expect front-line staff to be able to waive their late fees; however, there needs to be some checks and balances in the system. Auditors usually don't like for employees who charge the fees to be the same ones who authorize a waiver of fees.

Influential Georgian touts usefulness of tax incentives

The head of Savannah's development authority was recently named one of the one hundred most influential Georgians in Georgia Trend magazine. Trip Tollison has presided over the creation of an I-16 corridor development authority, the purchase of a massive business park in Chatham County, and the return of 14 unproductive parcels to the local tax digest. He says that programs to defer taxes help get businesses off the ground:

Think about it--10 years ago, these 14 properties collectively were paying less than $225,000 annually in property taxes. So we take 10 years, help the companies get established and grow without the burden of property taxes. Today, those companies are back on the tax digest, where their collective tax bill is now nearly $3 million on an annual basis.

Tax incentives have been controversial in Georgia in recent years. Some school systems have said that they are not always consulted about how development authority tax agreements can affect school revenues.

Decatur tax exemption deadline approaches

If you are a homeowner in Decatur and your home here is your principal residence, you are eligible to apply for the basic homestead exemption from property taxes. Applications for the basic homestead can be made online here. If you have already applied in a previous year, you do not need to reapply. The exemption remains on your home for as long as you continue residing in the property with no changes in ownership.

Exemptions based on age or income can be applied for in-person at City Hall. Please keep in mind that homeowners who are over the age of 65 already have an age-65 exemption known as the GH-2.Taxpayers with the GH-2 on their accounts will automatically receive the new S-4 school exemption, which exempts homeowners over the age of 65 from school taxes.  Information about this and other age-based exemptions can be found at www.decaturga.com/homestead or by calling us the City at 404-370-4100.

Although the City will honor homestead exemption applications submitted up until April 1, please submit your applications by 5:00 p.m. on March 15 in order for your exemption to appear on your 1st installment property tax bill.

Please note that applications made to Decatur and DeKalb are handled separately: if you've only applied with one office, you should check with the other office about your exemption status.

Decatur CoWorks to host business income tax seminar

A senior tax adviser will present income tax strategies for business owners during a lunch & learn at Decatur CoWorks this Thursday, March 16. Decatur CoWorks says:

During this 1 hour presentation Entrepreneurs and Small Business Owners will learn:

• How to lower your self-employment taxes – advantages and risks of an S-corp 
• The best retirement saving plans 
• How economic changes may affect you

Chad Swanson, CPA with Burge & Associates will be one of the speakers. Registration for the seminar is $15 which includes a box lunch. This sounds like a great opportunity for local businesses, independent contractors, and administrative staff.

Grace period expiring for tax payments

Property tax payments in Decatur were due on December 20, 2016. A grace period was granted during which no penalties or interest were charged. That grace period will expire this Friday, January 6. Interest will be added to unpaid amounts after that date.

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.

Tax office closed Monday

City Hall including the Revenue Division will be closed on Monday, January 2 in observance of the new year.  City departments will reopen on Tuesday, January 3.  For information or payments over the holiday weekend, tax and business license accounts can be accessed online at www.decaturgatax.com.

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.

State announces delay in tax refunds next year

Refunds for Georgia income tax returns in 2017 could take up to three months to be issued.  The Department of Revenue steps they take to verify taxpayer identity take longer and could delay the refunds.  From the AJC:

Georgia warns 2017 state tax refunds could be delayed

Kristina Torres | The Atlanta Journal-Constitution Friday, Dec. 2, 2016

Georgia tax officials said Friday that some 2017 refunds may be delayed due to fraud prevention efforts, a warning that comes after complaints this year that it took longer than usual to process income tax returns. 

Starting next year, all first-time Georgia income tax filers or taxpayers who have not filed here for at least five years will only be able to receive refunds in the form of a paper check and not by electronic transfer.

The state won’t begin processing individual returns until Feb. 1, with officials saying it could take more than 90 days to issue a refund if one is due...

The agency is encouraging taxpayers to register online with the department’s tax center website to monitor the status of their returns. Registered users can also get fraud alerts to notify them when a return has been filed with their Social Security number.

To sign up, go to gtc.dor.ga.gov.

Tax office to close Friday and Monday

City Hall, including the property tax office, will be closed from December 23 through December 26 for Christmas.  We will re-open Tuesday, December 27 at 8:00 a.m.  Tax and business license information is available anytime at www.decaturgatax.com.

Grace period offered for tax payments

Although property tax payments in Decatur for the second installment of 2016 were due yesterday, there is a grace period until Friday, January 6, 2017.  No penalties or interest will be added to accounts that are paid within the grace period. Please mail payments to:

City of Decatur Lockbox
P.O. Box 945650
Atlanta, GA 30394-5650

Lowndes County to begin appointing assessors

In most of Georgia, property tax assessors are appointed to their positions. In Lowndes County, this has been an elected position. That will change now that voters have approved the appointment of assessors going forward. The stated reason for the change is that elected assessors don't always have the training and expertise to carry out their duties. From the Dalton Citizen:

Assessor referendum passes

By John Stephen

VALDOSTA, Ga. — The Lowndes County special ballot asking if tax assessors should be appointed narrowly passed 50.27 to 49.73 percent, according to the county’s board of elections.

Results show 18,293 people voted for tax assessors to be appointed by county commissioners, and 18,095 people voted for tax assessors to continue being elected by the public — a difference of only 198 votes.

While all votes from local precincts were counted after Election Day on Nov. 8, up to 2,000 provisional, absentee and military ballots still needed to be counted. Until those remaining votes were tallied at the elections office on Tuesday, Nov. 15, the race was too close to call.

Currently, Lowndes County tax assessors are elected by the public. In every other county in Georgia, tax assessors are appointed by the county commissioners.

The ballot asked if the state should repeal the constitutional amendment that mandates Lowndes County tax assessors be elected. Now that the repeal has passed, tax assessors will be appointed by the Lowndes County Board of Commissioners starting in 2021.

The county commissioners pioneered the ballot question after discussing the change for several years. Board of Commissioners Chairman Bill Slaughter said while the current tax assessors have good intentions, he questioned whether they have the managerial skills necessary to oversee the large tax assessor’s office...

Tax payments due Tuesday

Property tax payments in Decatur for the second installment of 2016 are due on or before Tuesday, December 20. The City accepts payments without charging interest as long as the payment envelope is postmarked by the due date. Please mail payments to:

City of Decatur Lockbox
P.O. Box 945650
Atlanta, GA 30394-5650

Columbus voters keep property taxes frozen

One of the bigger property tax-related proposals on the ballot in Georgia this year was a repeal of the property assessment freeze in Columbus. Opponents of the freeze, including the Muscogee County school board and Columbus mayor Teresa Tomlinson, said that the freeze suppresses economic activity by discouraging home improvements and property sales. However, in the end, people weren't sold by the argument and chose to keep the freeze. Sixty percent of residents voted against a "thaw."

This is the third time that a repeal of the Columbus freeze has been defeated. It goes to show that a permanent freeze is difficult to tweak even if there are valid reasons to alter it. It also probably helps explain why DeKalb County's property tax freezes sunset every few years instead of being permanent. From the Columbus Ledger-Enquirer:

...If the referendum had passed, it would have kept the freeze in place for all who are currently under it, but would have put any homestead property bought after Jan. 1, 2017, under a more traditional fair market value system, where property is regularly reassessed. Those properties under the freeze would have remained so until they changed hands, whether by sale or probate. They would have then go into the fair market value system. Eventually, all frozen property would have changed hands and no property would have remained under the freeze.

The property tax assessment freeze was voted into effect in 1982. It freezes the assessed value of a homestead property at the value at the time of the sale and keeps it there until the property changes hands. It is then reassessed at the current value and again frozen at that value.

It has been challenged before, both at the polls and in the courts, and the challenges failed both times.

Voters initially approved the freeze by a 73-27 percent margin in 1982. A 1991 attempt to repeal the freeze by referendum failed by an 81-19 percent margin.

In the early 2000s, a group challenged the freeze’s constitutionality and won a favorable ruling at the Superior Court level. But the state and then federal supreme courts ruled it constitutional...

If paying by e-check, please remit today or tomorrow

If you are planning to pay your second installment Decatur property tax bill with an electronic check on our website at www.decaturgatax.com, I encourage you to make your payment no later than Wednesday, December 14. Like paper checks, e-checks can take three to five business days to clear the bank. It's not an immediate debit. Our formal payment deadline this installment is December 20, 2016.

Our website allows for e-check payments with no convenience fee charged, and credit card payments with convenience fees. We also continue to accept payments by mail or in-person up through the payment due date. If you have any issues with the website or the e-check option, please call the Revenue office at 404-370-4100 or 678-553-6743.

Qualified homeowners to receive new exemptions

As noted below, most seniors will be granted the new age-65 homestead exemption from school taxes automatically.

The new school exemption, which is called the S-4, will be factored onto the accounts of any homeowner with the already existing age-65 exemption known as the GH-2. No separate application is needed.

However, qualified homeowners who have never applied for the GH2, such as people who turned 65 during 2016, should visit City Hall at 509 North McDonough Street to apply between Jan. 3-Mar. 15, 2017. You will need to bring photo ID showing age and address.

Homeowners over the age of 62 with income under $50,000 may also qualify for another new homestead exemption approved in November, which is the GH-3. If the homeowner’s Georgia taxable net income plus the income of his or her spouse and the income of any resident family member totals less than $50,000, then the homeowner is eligible to apply for this new GH-3 exemption. This exemption will reduce the taxable value of a home by $15,000 for a projected annual savings of approximately $160 (computed using current millage rates which are subject to change). To apply for the GH-3, please come to City Hall between Jan. 3-Mar. 15 with a copy of your most recent available tax return and photo ID showing age and address.

Two other ballot questions that were approved do not create new exemptions, but expand existing exemptions. Homeowners do not need to re-apply to receive the full benefit. The increased exemption amounts will be granted automatically.

Homeowners who turned 62, 65, 70, or 80 during 2016 are encouraged to call the Decatur Revenue Division at 678-553-6743 to determine if they have become qualified for an exemption for which they were not previously eligible. To qualify for any age-based exemption, the claimant must be the age specified before January 1 of the tax year for which the exemption is sought.

Further information on Decatur’s other homestead exemption and tax relief programs can be found at www.decaturga.com/homestead.

Voters expand homestead exemptions in Decatur

Unofficial results from yesterday's election show that all four proposals to expand property tax homestead exemptions in Decatur passed, including a ballot question that will exempt homeowners over the age of 65 from school taxes beginning in 2017.  Voters also approved a fifth measure which eliminates an exemption that was no longer in effect.

The vote on Senate Bill 339, which increases the basic homestead exemption to exempt $25,000 in assessed value, was the most decisive result with 86 percent approval.

SB 340, which increases the amount of assessed value exempted for homeowners over the age of 65, passed by 83 percent.

Voters favored the creation of a new exemption under SB 342 for homeowners over 62 with income under $50,000.

SB 343, the senior school tax exemption, proved to be the most controversial of the measures, but still passed handily at 75 percent.

Homeowners in Decatur who currently have the existing age 65 homestead exemption, the "GH2," will be granted the new school exemption automatically in 2017.  Homeowners with the basic homestead exemption do not have to reapply to receive the increased exemption amount; that will also be granted automatically.  The City of Decatur will provide further guidance to homeowners on how and when to apply for the new exemption under SB 342 after the election results have been certified.

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.

Decatur tax bills online for 2016

Decatur property tax bills for the second installment of 2016 are online now. You can view, print, or pay your bill at www.decaturgatax.com. Payments can be made by e-check with no processing fees. Credit card payments are accepted with a processing fee charged by a third-party provider. You can pay by check or cash if you prefer.  More details including how the bills and fees were calculated, key dates, and information about exemptions are included in our "Tax Notes" here.

Paper bills were mailed last week. If you have not received your printed bill within the next few days, please use our website to obtain your bill, or call us at 678-553-6506.