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.

State agencies not immune in property tax lawsuit

Last December, property owners on Sapelo Island sued McIntosh County and the State of Georgia for discrimination and neglect. The lawsuit is based largely on the allegation that the Geechee property owners are paying county property taxes based on soaring assessments without receiving services in exchange. The State of Georgia requested that the state be dropped from the lawsuit, partly on grounds of sovereign immunity. A federal judge recently ruled that most of Georgia's agencies, including the Department of Natural Resources, are not immune from being sued.

The news comes from the Associated Press:

Key Georgia Agencies Not Immune in Slave Descendant Lawsuit

By Russ Bynum

Associated Press SAVANNAH, Ga. — Jun 22, 2016, 5:18 PM ET

A federal judge ruled that key Georgia agencies are not immune from a lawsuit that claims one of the last Gullah-Geechee communities of slave descendants on the Southeast coast is being eroded by discrimination and neglect.

Residents and landowners from the tiny Hogg Hummock community on remote Sapelo Island sued the state and McIntosh County last December in U.S. District Court. The lawsuit says the enclave of about 50 black residents is shrinking rapidly as landowners are pressured to sell because they pay high property taxes yet receive few basic services...

Reachable only by boat from the mainland, the largely undeveloped barrier island about 60 miles south of Savannah has no schools, police, fire department or trash collection.

Attorneys for the state asked the judge to dismiss the lawsuit. They argued the Department of Natural Resources, which manages most of Sapelo Island, and other agencies are immune under the 11th Amendment, which grants states broad protection from lawsuits in federal court.

In a ruling last Friday, Judge Lisa Godbey Wood in Brunswick granted immunity to just one agency — the Sapelo Island Heritage Authority — and ordered that it be dropped from the lawsuit. Other defendants including the Department of Natural Resources, Gov. Nathan Deal, McIntosh County, county Sheriff Stephen Jessup and the county Board of Tax Assessors still face civil claims.

However, the judge declared both the sheriff and the tax assessors immune from monetary damages in the case.

Wood is still considering other arguments for dismissal that are not related to immunity.

Walker County shows how tax anticipation notes work

While Decatur sends out tax bills every six months, most tax jurisdictions in Georgia send out bills once a year. For many cities and counties, that means a surge of revenues once a year and decreased cash flow during other months. To deal with this, some local governments rely on tax anticipation notes. This recent article about Walker County illustrate how TANs work in Georgia: 

Walker County borrows to pay bills: Tax anticipation notes commonly used as a budgeting tool

It sounds worse than it is.

The county is borrowing up to $5 million to cover operating expenses. But taking out a tax anticipation loan is something often used by county governments across Georgia as a way to match expenditures with revenue.

“Nearly all counties operate with tax anticipation notes,” Walker County Tax Commissioner Carolyn Walker said. “That is mainly because taxes are collected in the last three months, October through December. That is normal.

Walker said the county’s primary source of revenue is derived from taxing property. Until state law changed a few years ago automobile sales boosted collections. But now, the tax commissioner said no ad valorum tax is collected annually and the county receives just a portion of the 7 percent on the purchase price.

“That’s all,” Walker said. “Except for $1-per-tag collected from license plates.

“This year, by the end of December we had 96 percent of the (property tax) money collected and disbursed.”

During her June 9 public meeting, Commissioner Bebe Heiskell signed documents to obtain a line of credit — up to $5 million of temporary financing —that will be repaid with taxes receipts that are due before year’s end. #The county has assets valued at $107 million and projects collecting about $27 million in taxes for 2016, she said. “We’ll draw it down as needed, and I hope we don’t need it all,” she said. “This is to pay for the county’s business.”

By law, counties cannot borrow more than 75 percent of the total gross amount, including special purpose local option taxes (LOST, SPLOST, ESPLOST), collected in the previous calendar year. The amount borrowed must be repaid in full, with interest, before the end of the calendar year. #Walker County’s recent TAN carries an annual interest of 4.25 percent, payable on the amounts actually borrowed.

Heiskell noted that this year’s loan will be less than half of that required for 2015, the year when Walker County was forced to repay a loan guarantee for operations at the bankrupt Hutcheson hospital.

In Rome, similar tax anticipation notes — slightly more than $6 million worth — were issued last month to cover costs of operating schools. It is something done nearly every year during the summer months and the TANs are repaid when property taxes, due in mid-November, are paid.

Counties use TANs to even out revenue collections during the course of a year. The process is similar to utility companies allowing customers to make equal monthly payments based on historical usage, something that allows predictable budgeting over the course of a year.

“This is operating money for the months when we don’t have a lot of money coming in,” Walker said.

Catoosa County Chief Financial Officer Carl Henson said use of anticipation notes is not at all uncommon.

“It’s just something to use until you collect taxes,” he said.

Henson said that the low period for collecting revenue, from September to December, is often times when county governments will either borrow money or arrange for lines of credit.

“It (TANs) was developed to meet a need,” he said.

Since it is such a regular occurrence, a lot of counties do not put out requests for bids but will just go to their local bank every year obtain these letters of credit that allow them to meet payrolls and pay bills, Henson said.

And there are strict regulations about how such notes can be issued, used and repaid.

Decatur adopts millage rate for 2016

The City Commission approved millage rates for 2016 during its meeting Monday night. The general fund millage rate is decreasing from 9.7 mills in 2015 to 9.3 mills in 2016. The other millage rates for city taxes are the same as they were for the 1st installment property tax billing of 2016.  The rates are shown below:

General fund (operations):  9.3 mills
Capital improvements:  1.0 mills
Downtown Development Authority:  0.38 mills
Bond service:  0.92 mills
Bond (school) service:  1.57 mills

Although the general fund millage rate is decreasing, a tax increase was advertised under the requirements of Georgia law because rising assessments are projected to offset the lower tax rate. The city property tax bill (for a property that didn’t change in value since last year) would decrease by about $40 per $100,000 in assessed value because of the lower rate. For example, the bill for a property assessed at $200,000 ($400,000 fair market value) would decrease by $80 if there were no change in value since last year.

The school millage rate remains to be determined by the school board. Last year the school rate was 18.66 mills.

Tax payment grace period ends June 15

The deadline to pay property taxes in Decatur for the 1st installment of 2016 was June 1.  Although the deadline has passed, Decatur offers a grace period during which no penalties or interest apply to late payments.  That grace period ends on Wednesday, June 15.  Unpaid taxes after that date will accrue a 10 percent penalty and 1 percent interest per month.  To check the status of your account or make an online payment, go to www.decaturgatax.com.  For general information about property taxes in Decatur including a description of other payment options, visit www.decaturga.com/taxes.

Tax payments due tomorrow

Payments for the 1st installment of Decatur’s 2016 property tax bills are due on or before June 1.  You can view your account/payment status at www.decaturgatax.com.  Checks can be mailed to:

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

We honor postmarks on mailed checks. If you want to pay in person, come to 509 N. McDonough St. We are open today through Friday, 8:00 a.m. until 5:00 p.m. Payments can also be made online; however, if you are paying by e-check, please note that it will take several days until your e-check clears and is credited to your account.

In addition to property tax payments, tomorrow is also the payment deadline for businesses in Decatur with commercial sanitation accounts.

If paying by e-check, please remit by tomorrow

If you are planning to pay your first installment Decatur property tax bill with an electronic check on our website at www.decaturgatax.com, I encourage you to make your payment today or tomorrow. Like paper checks, e-checks can take three to five business days to clear the bank. It's not an immediate debit. With Memorial Day coming up, that will further lengthen the amount of time it could take for your e-check to clear. Our formal payment deadline this installment is June 1, 2016. Our website allows for e-check payments with zero convenience fees, and for 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 404-370-4100.

Decreased millage rate proposed

Decatur’s City Commission is considering a reduction of its property tax millage rate for city operations. Overall tax revenues are expected to increase because of rising property values, but the millage rate would decline. The following explanation is included in the proposed budget for Decatur’s upcoming fiscal year: 

Millage Rates and Potential Increased Homestead Exemptions 

Because of the [projected 7.5 percent] increase in the real estate property digest, it is recommended that the General Fund Millage be reduced from 9.70 mills to 9.30 mills. Lowering the millage will result in a $100 reduction in City of Decatur property taxes for a property valued at $500,000. In addition, as part of the November 8, 2016 election, Decatur voters will be able to consider various homestead exemption increases that will apply to the General Fund, Capital Improvement Fund and the DDA Fund. All approved exemption increases will be reflected in the first installment billing in April, 2017. The 2016-2017 Proposed Budgets were developed assuming that all of the exemptions will be approved. The estimated reduction in general fund real property taxes is $310,000 for fiscal year 2016-2017 and $620,000 for fiscal year 2017-2018. An owner occupied property that qualifies for all of the additional exemptions could see a $135 reduction in the first installment tax billing in early 2017.

Due to capital needs, it is recommended that the Capital Improvement Fund Millage remain at 1 mill and due to resident, business and visitor requests for increased community engagement activities, aesthetics, and business development, it is recommended that the DDA Fund Millage remain at .38 mills. The debt service millage for the 2007 general obligation bond s remains at .92 mills and the 2015 debt service millage for school system capital improvements remain at 1.57 mills. 

A general fund tax rate of 9.3 mills would be the lowest it has been since tax year 2000. If approved, the new rates would take effect July 1, and would be factored into city property tax bills on October 20, 2016.

General Assembly OKs military waivers

The Georgia General Assembly approved two tax or administrative measures that are favorable to members of the military and their spouses during the final days of the legislative session.

HB 821, the “Military Spouses and Veterans Licensure Act” allows military spouses and servicemembers who have recently left the military to practice a state-licensed profession before a permanent license is issued. The professional licensing board for each profession is supposed to adopt rules before July 2017 to grant temporary or expedited licenses to these individuals. This should help military families earn income while their permanent license is pending. This affects such professions as psychologists, architects, and accountants.  The City of Decatur, like other local governments in Georgia, normally requires a state-licensed professional to provide proof of their state license before a local business license is issued.  Decatur would honor any temporary or expedited license issued to individuals in these circumstances.

HB 991, the “Returning Heroes Act,” is intended to forgive tax penalties on troops who are deployed while the taxes become past due.  Both bills must be signed by Governor Deal in order to become law.

Bill protects deployed troops from tax penalties

The Georgia General Assembly has passed a bill requiring property tax collectors to waive penalties and interest for military servicemembers if they pay the principal owed within 60 days of returning from a combat zone. House Bill 991 started out as a bill modifying the definition of the value of conservation-use property but was replaced by the House Ways & Means Committee with the waiver for deployed taxpayers. Known as the “Returning Heroes Act,” the bill heads to the governor’s desk next.

The bill would be financially beneficial to military personnel, effectively allowing an interest-free deferral of property taxes due while deployed. That being said, the bill could also lead to unintended consequences in some cases. For example, if a tax commissioner does not know that the reason for delinquency is military service, the tax commissioner could lien and levy the property before the taxpayer’s return. Although the penalties and interest could subsequently be waived, getting the lien cancelled would be annoying for the taxpayer and the tax commissioner. It would be in the deployed taxpayer’s best interest to communicate proactively either prior to deploying or from overseas to ensure that the tax commissioner is aware of his or her deployed status to prevent escalated collection action.

A second wrinkle is that the bill does not distinguish between deployed taxpayers’ homes of record versus investment properties. I am not sure that it is the intent of the General Assembly to grant a senior officer who may own or co-own a dozen investment properties to defer taxes during what could be a 400 day deployment. While the Returning Heroes Act is a great idea that should be approved, in hindsight it may have been better to specify that this waiver shall apply to homesteaded properties.

State requests dismissal of property tax discrimination case

The State of Georgia and McIntosh County are requesting that a lawsuit brought by the Geechee residents of Sapelo Island be dismissed.  The federal discrimination suit alleges that McIntosh County unduly taxes Sapelo property owners but provides them with no services.  The State asserts that there is nothing definitive in the suit that is within their jurisdiction to respond to.  The Florida Times-Union ran an article on the subject on Feb. 9:

McIntosh County, state of Georgia ask federal court to dismiss suit that says it discriminates against Gullah Geechee on Sapelo Island

McIntosh County says white and black residents of barrier island are subject to same services, however poor

By Terry Dickson Tue, Feb 9, 2016 @ 10:26 am | updated Tue, Feb 9, 2016 @ 7:08 pm

McIntosh County and the state of Georgia have asked a federal court to dismiss a lawsuit that claims both have systematically discriminated against Gullah Geechee residents of Sapelo Island in hopes of driving them off the island.

Georgia and McIntosh County also want the case moved from Atlanta, where it was filed last year, to Brunswick, which is just one county away from the island and far more convenient for all local witnesses.

In a motion filed on behalf of County Manager Brett Cook and other defendants, McIntosh County said the suit failed to show that the county had treated white residents of the island any more favorably that African American residents.

It also asserts that only five of the more than 50 plaintiffs actually live on Sapelo Island. “The vast majority [of the plaintiffs] merely allege they own property’’ on the island, the response says.

McIntosh County does not deny that it does not provide the same ambulance, police, fire, garbage collection and other services for the island as it does mainland residents, but it has an explanation.

The obvious reason for the disparity in services is that Sapelo is a barrier island accessible by boat, the suit says, and black residents there are subject to the same level of services as whites, the county says in its motion to dismiss.

The suit filed last year against McIntosh County and the state of Georgia, which owns 97 percent of the island, asserts that more than 50 residents of the Hog Hammock community on the island pay high property taxes and get no services in return. The island has no school, no ambulance service and no trash pickup, all services available on the mainland.

In its response filed Tuesday, the state says the Department of Natural Resources, the agency that oversees the island, provides emergency services and provides a trash compactor, although it does not charge a garbage collection fee.

The state also evokes sovereign immunity, which forbids federal suits against the state unless the state first agrees to be sued in that court. The state’s answer says the federal courts have long upheld sovereign immunity.

The state-run ferry is not accessible to the disabled and has a schedule that makes it nearly impossible for someone to live on the island and hold a job on the mainland, the suit said.

The plaintiffs assert that there is a plan to systematically tax them out of their homes so rich, white people can build expensive vacation homes there...

Property tax grace period ends Jan. 7

If you still haven't paid your property taxes for the second installment of 2015 for Decatur, Georgia, please make your check payable to City of Decatur and mail to:

CITY OF DECATUR LOCKBOX
PO BOX 945650
ATLANTA, GA 30394-5650

We will honor postmarks up until January 7 without charging penalties or interest.  Do not overnight your payment to the lockbox address because it is a post office box.

Tax payments due today in Decatur

December 21 is the deadline for property tax payments in Decatur, Georgia. For real property taxes including land and buildings, payment is due for the second installment of 2015. Payment is also due for personal property taxes including business inventory for 2015. If you haven't paid yet, make your check payable to the City of Decatur, enclose your remittance coupon, and mail it to:

City of Decatur Lockbox
PO Box 945650
Atlanta, GA 30394-5650

We accept postmarks, so if you have your envelope postmarked today we'll know that you mailed it in time.

Geechee taxpayers sue state and county

Property owners on Sapelo Island are suing McIntosh County and the State of Georgia for discrimination and neglect. The lawsuit is based largely on the allegation that the property owners are paying county property taxes based on soaring assessments without receiving services in exchange. From the Atlanta Journal Constitution on Dec. 9: 

Fifty-seven Sapelo Island property owners and residents on Wednesday filed a lawsuit that contends discrimination and neglect by state and local authorities are contributing to the dissolution of one of the last remaining Gullah-Geechee communities in the nation.

The Gullah-Geechee residents are the descendants of slaves whose families have lived on Sapelo Island for more than two centuries. They have seen their numbers dwindle steadily over the years as the island — about 70 miles south of Savannah — has been converted into a vacation destination with luxury homes and resorts. 

All the while, Gullah-Geechee residents pay high property taxes but receive no basic services in return, the federal lawsuit said. Also, the only state-run ferry does not have disability access and has a schedule that makes it practically impossible for someone to live on the island and have a job on the mainland, the suit said. It was filed against a number of defendants, including the state of Georgia and McIntosh County. The governor’s office declined comment. McIntosh County manager Brett Cook did not return a phone call seeking comment. 

Reed Colfax, a lawyer representing the plaintiffs, said the county must provide services if it is collecting taxes from members of the Gullah-Geechee community. “There is no school, no ambulance, no trash pickup,” he said. “There are no services whatsoever.” Moreover, he added, the county’s high taxes led to some properties on the island being sold at tax auction and others who could not afford the taxes to sell their land…

Property tax payments due in 10 business days

Final payments for real and personal property taxes in Decatur for 2015 are due by December 21. Payments can be made online at www.decaturgatax.com by credit card with a convenience surcharge or by e-check with no extra fees.  Taxpayers should be aware that e-checks, like paper checks, generally take three to five days to clear the bank. It is not an immediate debit like online credit card transactions. Considering the clearing period, e-check payers are encouraged to pay at least five days prior to our formal payment deadline to help prevent any last-minute stress over whether your payment was received on time.

DeKalb County reminds taxpayers of deadline

The following item appeared in the Sept. 23 edition of the DeKalb Neighbor:

Property tax payments Claudia G. Lawson, DeKalb Tax Commissioner, is reminding DeKalb County taxpayers that the due date for the first installment of 2015 real estate and personal property taxes is Sept. 30.

First installment taxes, which are not received or postmarked by the Sept. 30 deadline will incur a 5 percent late payment penalty which applies by law. It is important to note that if your payment is mailed, the postmark or cancellation stamp from the U.S. Postal Service is the only accepted evidence of timely mailing. 

There is also a drop box on the front and side of the central office at 4380 Memorial Drive in Decatur [sic], which may be used for last minute drop-offs.

Another convenient option is to pay property taxes by electronic check or credit card.

Property owners with questions should contact the Tax Commissioner’s Office at 404-298-4000 or email proptax@dekalbcountyga.gov for assistance.

DeKalb County property taxes are billed and paid separately from City of Decatur property taxes.  DeKalb sends one bill annually with two remittance stubs, the first being due this Wednesday.  Decatur sends two distinct bills annually; the first installment was due on June 1.

DeKalb County tax bills going out this week

The DeKalb County tax commissioner’s office says that their annual property tax bills will be mailed out this Saturday. Here’s a notice from their website:

Please note that the 2015 DeKalb County Tax Statements will be mailed out August 15th. This website will be updated with the 2015 tax amounts and copies of the bills at that time. The 2015 installment deadlines will be September 30th and November 15th. If you intend on making a single payment, payment must be received by the September 30th deadline in order to avoid receiving a 5% late fee. Properties under appeal at the time the statements are mailed are billed at a lower value until the appeal is completed. 

DeKalb’s bills are separate from the City of Decatur’s 2nd installment property tax bills which will be mailed out on October 20 and will be due by December 21, 2015.

Decatur tax estimator updated

You can use the tool on the left margin of this website to estimate your City of Decatur property taxes for 2015. To use it, enter the 100 percent fair market value as shown on your 2015 assessment notice from DeKalb County. Click whether or not you have the basic homestead exemption, and compute. That will show you a projection of your Decatur taxes for the full year. For a typical home, add another $315 to that total for sanitation and stormwater fees. That will give you an idea of your city tax and fee liability for this year.

To project what your 2nd installment tax bill will be, subtract what you paid during the 1st installment from the year’s total.

Please note that this tool works only for property owners with or without the basic homestead exemption, and does not reflect the full tax savings if you have additional homestead exemptions based on age, income, or disabled veteran status.

My office will have exact 2nd installment tax bills prepared by October 20. We cannot give exact individual amounts before then because we will not receive a certified digest showing individual property values for another month or so, and then we have to review, validate, and convert all the data in our tax software for billing.

Georgia cities with tax websites

Many counties in Georgia collect property taxes on behalf of the cities in their boundaries. Some cities, such as Decatur, collect their own property taxes. Of the cities in Georgia that collect their own property taxes, I'm not sure how many have tax records online, but I've only been able to find six so far. Please let me know if you're aware of other Georgia cities that have their own property taxes online.

• Decatur
• Marietta
• Milton
• Roswell
• Savannah
• Woodstock

Decatur's tax sale scheduled for Aug. 4

The City of Decatur's annual tax sale for delinquent properties will take place next Tuesday, August 4 , inside City Hall (not on the courthouse steps) at 10:00 a.m.  Prospective bidders at the sale are encouraged to look over the information below.

Tax Sales and Redemption Information

As part of our delinquent collections processes, we are able to provide a list of properties scheduled for tax sale and balances owed upon request. However, we are unable to advise you on the quality or characteristics of the properties for sale, or potential financial or legal issues that may arise as a consequence of you bidding, purchasing, or losing a property at one of our annual tax sales. Tax sales conducted by the City of Decatur are “buyer beware” events.

Redemption procedures are governed by state law as follows:

§ 48-4-40. “Persons entitled to redeem land sold under tax execution; payment; time
Whenever any real property is sold under or by virtue of an execution issued for the collection of state, county, municipal, or school taxes or for special assessments, the defendant in fi. fa. or any person having any right, title, or interest in or lien upon such property may redeem the property from the sale by the payment of the redemption price or the amount required for redemption, as fixed and provided in Code Section 48-4-42: (1) At any time within 12 months from the date of the sale; and (2) At any time after the sale until the right to redeem is foreclosed by the giving of the notice provided for in Code Section 48-4-45…

§ 48-4-42.  Amount payable for redemption
The amount required to be paid for redemption of property from any sale for taxes as provided in this chapter, or the redemption price, shall with respect to any sale made after July 1, 2002, be the amount paid for the property at the tax sale, as shown by the recitals in the tax deed, plus any taxes paid on the property by the purchaser after the sale for taxes, plus any special assessments on the property, plus a premium of 20 percent of the amount for the first year or fraction of a year which has elapsed between the date of the sale and the date on which the redemption payment is made and 10 percent for each year or fraction of a year thereafter. If redemption is not made until more than 30 days after the notice provided for in Code Section 48-4-45 has been given, there shall be added to the redemption price the sheriff's cost in connection with serving the notice and the cost of publication of the notice, if any. All of the amounts required to be paid by this Code section shall be paid in lawful money of the United States to the purchaser at the tax sale or to the purchaser's successors.”

If you have further questions about redemption or any other aspect of the tax sale process, I strongly encourage you to consult with an attorney experienced in such matters. You can access a list of local attorneys by going to www.gabar.org, entering “Decatur” under Member Directory, and clicking Search.