DeKalb assessment notices to be sent June 3

DeKalb County assesses the values of all properties in the county and its cities. Per state law, counties are required to mail out assessment notices annually. DeKalb will mail out their assessment notices on June 3. The notice will advise you of your property value for 2016. I encourage all property owners to pay extremely close attention to the figures and deadlines on the notice. The 2016 value will be the basis of your DeKalb County property tax bill in the fall and, for Decatur property owners, your 2nd installment tax bill for 2016. 

Here are a few tips for reading your assessment notice. Assuming that the county formats it like previous years, your 100 percent value for 2016 will appear toward the center of the notice. That’s what you want to look at first. If the value doesn’t seem right to you, think about whether you could sell your property for that amount. If you conclude that the assessment does not accurately reflect market value, you may consider appealing. You will see the appeal deadline printed toward the top of the bill, which is 45 days from the date of the notice. (It will probably say July 18.) DeKalb warns, “If you do not file an appeal by this date, your right to file an appeal will be lost. Late appeals will not be processed.” If you don’t receive a paper notice for each of your properties, you should be able to access notices on DeKalb’s property appraisal website.

If you have questions about your assessment or the appeal process, call DeKalb County. Toward the middle of the notice, right above the “grid” area, you should see the names and phone numbers of staff contacts who can assist you with questions about your assessment. Your best bet is to call the staff contacts on your notice because they have the expertise for the location and the classification of your property. (If you’re going in person, note that the assessors have moved out of the their old location in the Callaway Building to their new location at the Maloof Building, 1300 Commerce Drive in Decatur, where the water department used to be.) Please keep in mind that the City of Decatur is unable to answer questions about the values DeKalb determined.

At the bottom of the notice you’ll see estimates for property taxes for the year. However, the estimates are based on last year’s millage rates because this year’s have not been approved yet. You will also see a disclaimer that “City exemptions may not be included in this estimate.” Decatur exemptions definitely will not be included in the estimate on your assessment notice. Decatur maintains its own homestead exemptions and exemption data. DeKalb does not know how Decatur’s exemptions affect city bills for individual homeowners. To get a more accurate projection, pull out your Decatur tax bill from the 2nd installment of 2015. Look at the amount of tax savings due to homestead exemptions. Take that amount and subtract it from the city estimate on the assessment notice for 2016. If you have homestead exemptions with the City of Decatur, your actual bill in the fall of 2016 will be lower than what DeKalb estimates for your city taxes.

Please be aware that the current assessment notice no bearing on your property tax bill in 2015 or the city's 1st installment bill of 2016. Decatur’s 1st installment property tax bills are always based on the prior year’s value (your 2015 value). The assessment notice for 2016 does not change the value on your 1st installment 2016 city bill, and it does not change the amount that was due yesterday, June 1. Decatur’s 2nd installment trues up the total amount due for the year based on your final value and whatever millage rates are approved before the billing in October.

Governor signs property value appeal bill

Last week Gov. Nathan Deal has signed House Bill 202, a comprehensive local taxation law that modifies some appeals procedures for property taxpayers.  The new law allows taxpayers to request a “description of the methodology used by the board of tax assessors in setting the property's fair market value” after receiving their annual assessment notice.  The act also allows a taxpayer to use a privately commissioned property appraisal in support of a pending appeal.  HB 202 also provides an option to taxpayers to meet with somebody from the tax assessment office to discuss their property value within 30 days of a written request.  The law also amplifies on existing board of equalization, arbitration, and superior court appeals procedures.

Tax valuation and appeals bill passes state legislature

House Bill 202, which affects property value appeal procedures, passed the Georgia General Assembly on the final day of its session this year.  The House will transmit the bill to the governor's desk next week for his approval or veto before May 12.  HB 202 underwent significant amendments before final passage after a conference committee worked out differences between the House and Senate.  An earlier version of the bill had nine sections; the final version has 28 sections including motor vehicle, motor home, and income tax provisions that were not included in prior versions.  The portions relevant to property taxes are summarized below courtesy of the Georgia Municipal Association:

Section 5 -permits taxpayer to opt-in for electronic notice and billing of taxes at the discretion of the tax commissioner;

Section 6 -further specifies obstruction language regarding levying officers; 

Section 7 -requires levying (counties and cities) and recommending (e.g., school boards) authorities to post a on their website, if available, a report that has been required in the past; report must appear in newspaper of general circulation for one week (as opposed to two); 

Section 8 -permits taxpayers to opt-in for electronic notices and billing of ad valorem taxes; 

Section 9 -extends time for completing digest to September 1 (from August 1); -outlines requirements for penalties for incomplete or improper tax digests; -tax commissioners forfeit portions of commission depending on how long it take for proper submission; 

Section 10 -outlines joint boards of assessors between counties and the process of an intergovernmental agreement for such purposes; 

Section 11 -specifies the use of the Standard on Ratio Studies published by the International Association of Assessing Officers as tax digest in being prepared; 

Section 12 -establishes 10% penalty on assessment of unreturned personal property; -outlines a two year assessment freeze and exceptions; 

Section 13 -changes completion date for revision and assessment of returns from July 1 to July 15, except in counties where taxes collected in installments, where date remains June 1; 

Section 14 -clarifies that hearing officer method of appeal available for non-homestead property with value in excess of $750k (reduced from 1M) and for wireless property with aggregate FMV in excess of $750k (new provision for wireless property); -clarifies that methodology information may be obtained from board of assessors by way of a document request; adds enforcement mechanism for failure to comply with document requests, including assessment of attorneys’ fees;

Section 15 -defines appeal administrator for board of equalization as clerk of superior court, with distinct budget unit for such duties; -establishes 12 month document retention period; -sets standards for board of equalization members; -outlines process for appeals; -board of equalization must decide each case at end of hearing prior to proceeding to next appeal, written decision hand delivered to parties; 

Section 16 -outlines nonbinding arbitration process (replacing binding arbitration process) and process of appeals to superior court, including settlement conference; -establishes uniform superior court filing fee of $25.00; -lowers threshold for mandatory attorneys’ fees on commercial property from 80% to 85% (now the same for all real property) 

Section 17-RESERVED 

Section 18 -specifies that each digest shall be accompanied by all documents, statistics, and certifications relating to parcels under appeal; -removes penalty for deviation from assessment ratio appearing in subparagraph (b) for digests after 1/1/2016...

HB 202 does not directly affect Decatur's procedures for property tax billing, although affects certain assessment calculations and appeals options which can affect property owners county and city bills.

5 reasons to file a return of property

DeKalb and Decatur residents will receive assessment notices from DeKalb County in May.  If you disagree with your value, you can begin your appeal at that time.  Or you can get ahead of the game by filing a return of your property with DeKalb County prior to April 1.

Filing an annual return of business personal property is required.  Filing a return of real property such as your home or other real estate property is optional.  Along with the reasons I mentioned the other day, several additional purposes are served by filing a return before April 1:

• To request a review of the appraised value of your real estate property
• To report additions, improvements, or removal buildings or structures on your real property
• To report that your business has closed or that you've begun a new business
• To report new personal property such as business equipment
• To report the depreciation of your property's value

I encourage property owners who fall into these categories to consider filing a return.  It may help reduce lag time in the final determination of your taxable value for 2013.

The bullet points above are adapted from suggestions made by Hall County tax assessors office to their taxpayers.  Return and appeal procedures are basically the same statewide.

Tax news round-up

Here are some of the latest commentaries on DeKalb County's property assessment notices:

• DecaturMetro:  "Could Decatur Do Its Own Property Tax Assessments?"

• DeKalb County Commissioner Jeff Rader:  "So Your Tax Appraisal Came in High?"

• DeKalb County Commissioner Elaine Boyer:  "Diligence on assessments could lower your tax bill"

AJC reports on boards of equalization

Thursday’s Atlanta Journal-Constitution reported on boards of equalization that have experienced a sharp rise in property value appeals throughout metro-Atlanta.  The article also described DeKalb County’s “calendar-call format” for BOE hearings:

Instead of an appointment-based system that gave appealing property owners an assigned time to report for their case, [Cobb County] changed the format to a calendar-call system that requires scores of property owners to sign in so their appeals can be heard on a first-come, first-served basis…

Like Cobb, DeKalb County also adopted the calendar-call format to accommodate the extra BOE work.

“It wasn’t popular, but it is what it is,” said Debra DeBerry, the county’s Superior Court clerk. “That way you don’t lose any of your hours to no-shows, and we had large numbers of no-shows here.”

Based on its population, DeKalb is authorized to operate 13 BOEs, but it only uses between three and six panels because there isn’t space to accommodate more, DeBerry said. The BOEs have heard about 14,600 appeals for 2011.

DeBerry asked for additional funding for the BOE budget this year but didn’t get her full request. DeKalb’s BOE office budget is $442,000, including $240,000 for member salaries. She has also asked for additional operating space.

The AJC’s full article here may give local taxpayers some additional insight into how their BOE appeals are being handled, and what the BOE workload means for county budgets.

Message about property values

Please visit the City of Decatur's website here for a message about the property assessment notices that were recently sent out by DeKalb County.

Any update will also be posted as soon as it's available.

Lawmakers tout assessment reform

Early on during the 2010 legislative session, SB 346 faced opposition from some officials about allowing year-round assessments. Their argument was that it would be too difficult to budget for when you have an unknown number of people who could appeal their value at any given time. But after scrapping that part of the bill, the Senate passed the bill unanimously.

The House wasn’t completely satisfied with the language in the bill that came over to them. They cleaned up the legal wording, inserted clauses to encourage electronic notices of assessment, and changed the Senate’s proposal for property value arbitration. An overwhelming majority of representatives (137 to 7) voted for the House substitute.

Now, any initial disagreements appear to be water under the bridge as state legislators head back home to highlight legislative accomplishments during the 2010 session, especially SB 346. Here’s a sampling of what state legislators are telling their voters:

Sen. Bill Heath (R-Bremen) declared, “Georgia’s property owners triumphed with the overwhelming bi-partisan support of Senate Bill 346.”

Rep. Lee Thompson (D-Lawrenceville) announced to his constituents that SB 346 passed and “is aimed at protecting taxpayers from unfair assessments and guaranteeing the right to appeal.”

Sen. Chip Rogers (R-Woodstock), the architect of SB 346, calls it “a point of pride.” The Marietta Daily Journal reported, “Rogers said a point of pride is his Property Tax Assessment and Appeals reform bill, Senate Bill 346, which is aimed at ensuring all Georgia properties are properly assessed at fair market value and that property owners have guaranteed rights to appeal. Rogers called it the most sweeping overhaul of the Georgia property tax system in decades.”

Rep. Barbara Macey Reece (D-Menlo) used nearly identical language as Lee Thompson (I think this must come from some type of press release template) saying, “Lawmakers gave final passage to comprehensive property tax reform legislation April 29. SB 346 is aimed at protecting taxpayers from unfair assessments and guaranteeing the right to appeal. The bill requires that every property owner receive an annual Notice of Assessment that includes the estimated property tax and expands the appeal time from 30 to 45 days. All relevant sales, including distress sales, must be included when determining Fair Market Value.”

Rep. John Lunsford (R-McDonough) said, “In an effort to give greater rights to our property owners and to expand those rights, the legislature passed Property Tax Reform, Senate Bill 346. This bill will protect taxpaying property owners by guaranteeing their right to appeal assessments and protecting them from unfair tax assessments.”

Sen. Tommie Williams (R-Lyons) said, “SB 346 revises numerous provisions relating to real property tax assessments and appeals and is considered to be the most sweeping overhaul of Georgia’s property tax system in decades.”

But not all reviews have been so positive. As noted earlier, some property taxpayers themselves have been more skeptical about the provisions of the bill. Also, Brett Harrington, an appraisal professional and blogger at Taxing Issues, has expressed concerns that SB 346 may not be “pro-taxpayer.” In response to my comment about SB 346’s requirement to fix the purchase price of a property as its property value for tax purposes for one year, Harrington noted:

Regarding the purchase price requirement, I agree, it could be significant. However, I am not 100% sure it is entirely taxpayer friendly. In some respects it places an emphasis on the purchase price, which can be problematic. This has been the case in places like CA & OH. When it comes to commercial/industrial transactions, the purchase price is not always the best indicator of market value for property tax purposes.

I believe the annual notice requirement is a favorable requirement. However, I think that changing/eliminating the “annual return” requirement would be much better. Taxpayers can file a return annually to initiate an appeal, but most taxpayers do not know this. What about eliminating the return requirement and allowing taxpayers to appeal after they receive their tax bills? Not only would it provide the opportunity to appeal, it would also be more cost and time effective for the municipalities.

Harrington concluded that, “Overall, in my opinion, this bill constitutes tweaks far more than reform.”

Is my value correct? Reading your tax bills

DeKalb County determines the fair market value (also referred to as your “100 percent value, ” “appraised value” or “total value”) of the properties in DeKalb County including properties within the city limits of Decatur.

State law establishes that counties’ property taxes are levied against 40 percent of the total value. This is known as your “assessed value,” “taxable value,” or your 40 percent “assessment.” Municipal governments may apply different assessments depending on the city ordinances.

As authorized by state law and city ordinances, Decatur uses a 50 percent assessment. We start with DeKalb County’s “total value.” For example, if your total value on DeKalb’s website is $250,000, DeKalb will tax you on $100,000 of that as shown on one of their tax bills:

The City of Decatur would also start with $250,000, but would tax you on $125,000:

This is why your taxable value for Decatur won’t match your taxable value for DeKalb. Please also note that the city does not have its own appraiser or assessor and cannot change your assessment. More information about property assessments, appeals, and billing is available on our homepage.

Mixed reaction to SB 346

The passage of Senate Bill 346 has elicited strong reactions over on the AJC’s “Gold Dome Live” blog. Some readers are thrilled about the bill; some see it as useless. Here’s a sampling:

Munroe Burbank:  "This is not good, and has absolutely nothing to do with lowering taxes. Sure, these days, assessments probably show a downward trend because of housing market crisis, but this won’t last forever. I was assessed every 3 – 4 years from 1996 – 2006, and each time my taxes went up because the value of my property went up. Once the economy is back on its feet and real estate values rebound, this yearly assessment will amount to an annual property tax increase."

RSJ:  “SB346 is a very good piece of legislation. It adds transparency to the assessment process and removes the need for filing a return to initiate an assessment appeal. Prior to this law, if the County elected not to send a taxpayer an assessment notice, the taxpayer had no appeal remedy for the current years’ assessment, unless they went to the County between Jan and March or April and filed a form called a real property tax return. Guess what – 99% of the citizens of this state had no idea that this was the process and thus when their tax bill came in the mail, there was no recourse. Now, at least the taxpayer will be formally notified each and every year what their assessment will be and it will be up to them to take action as to whether or not they feel an appeal is warranted. SB346 has some components that are not perfect but, overall, it is a solid example of our elected offficials acting as good legislators instead of just good politicians.”

“None Supporter of SB346”:  “This legislation is a tool to force county assessors [sic] office to go broke so that the state can eliminate property taxes in each county, take over pushing for a state sales tax increase so that they control how much money goes to each county. Remeber [sic] folks, the propery [sic] tax bill you now pay is arrived at the amount of dollars it takes to run your county divided by the total assessment of the county. Now, take that away and you sales taxes will surely skyrocket! Then the political game of who and what county receives the sales tax collected, oh, wait, the state still owes the counties of Georgia millions of collected sales taxes in error already, cough up please Mr. Sonny.”

Read all the comments for yourself here.

Senate passes property assessment bill

The state Senate passed SB 346 yesterday by a 54-0 vote.

Sen. Ronald Ramsey (D), who represents a portion of DeKalb County, told the Atlanta Business Chronicle that “This bill is taxpayer relief. It will restore people’s faith in government.”

The bill would set the sale price of a home as the fair market value for tax purposes for one year following the sale. The legislation would also require counties to mail out assessment notices annually, which would give property owners the chance to challenge their assessments, and would extend the window to appeal to 45 days.

Here are more details from the Macon Telegraph:

ATLANTA — The state Senate approved a major overhaul to Georgia’s property tax system Thursday, continuing a multi-year effort to hold down the taxes local governments depend on and homeowners seem to hate.

Senate Bill 346, sponsored by Senate Majority Leader Chip Rogers, passed unanimously and moves now to the House of Representatives, where similar reforms also are popular. Rogers’ bill includes dozens of changes, but the idea behind them is to keep property assessments from ballooning.

Those assessments — basically an estimation of a home or other property’s value — are used in conjunction with local millage rates to figure annual tax bills. But as the mortgage crisis has forced home values down, assessments haven’t kept pace, leaving many people feeling their property taxes are unfairly high. Rogers’ bill requires that assessment notices be sent to property owners every year. It extends the appeals process from 30 to 45 days and requires that all comparable sales, including bank sales and foreclosures, must be applied when officials set an assessed value.

It also locks in a home’s assessed value for one year after it sells.

Other property tax legislation is moving forward in the House, aimed at capping the annual increase in a home’s tax value, regardless of what the housing market does. House Resolution 1 and House Bill 517, both of which deal with such caps, passed the House Ways and Means Committee on Thursday.

Efforts to cap assessment growth failed last year, but House Republicans are pushing the matter again. Rogers’ reforms seem to have wider appeal. For example, Democrats who blocked House Resolution 1 last year have said they won’t fight Rogers’ bill.

The bill is expected to receive bipartisan support in the state House.

Tax & beer news before the big game

I love the subheading--“An assessment battle brewing in Fort Collins.” The Reporter-Herald reports that beverage giant Anheuser-Busch is appealing its property tax assessment in Colorado. For tax geeks and football fans, this story may whet your whistle before Sunday:

FORT COLLINS — Anheuser-Busch is challenging its property tax assessment for the plant just outside of Fort Collins.

If a state panel agrees with the company, Larimer County stands to lose $1 million per year in tax money.

Larimer County Commissioner Steve Johnson took exception to the company claim that the county’s $90 million valuation was inflated by $40 million.

He questioned why the company, which was purchased by InBev in 2008, now questions the valuation.

“We have a new company that is coming in and gaming the system,” said Johnson. “This company would be paying less than its fair share, and everyone else will be paying more than their fair share.

“I think that’s a crappy thing for an employer in Larimer County to do.”

Anheuser-Busch opened in Larimer County in 1988 and has since increased production from 6.1 million barrels of beer to 11.2 million in 2007.

The assessed valuation has hovered around $90 million since 2003 without any protest from the company, said Christine Murray, certified general appraiser with the Larimer County Assessor’s Office.

But this year, Anheuser-Busch claimed its value for 2009 is $50 million — much less than the $90 million designated by Murray.

“The number they’re looking at, that $50 million, is random,” said Murray, who stands behind her assessment and says it meshes with those of similar properties. “Nobody seems to know (where it came from.)”

The brewery’s general manager, Kevin Fahren-krog, however, said in a written statement that the figure is from an independent property tax consultant. The consultant, he said, based his figure on similar properties within Larimer County and across the United States.

“We review assessments on our property nationwide on an annual basis and in the current economic climate realize that market values have declined,” according to his statement.

“Anheuser-Busch is a significant tax payer in Larimer County, paying more than $8 million per year in real and personal property taxes.

“We seek to work with the county to pay our share.”

In other football-related property tax news, former NFL lineman Paul Runyan has made the papers recently for grazing donkeys to get a property tax break under New Jersey law. Here’s a tip for Decatur residents—grazing donkeys won’t get you a tax break here, and they’ll just eat your flowers anyway.