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.

Now hiring

Decatur is searching for a new administrative assistant who will alternate duties between the Revenue Division and the city's human resources office. Information about the job can be found here. This position is a unique opportunity to learn and assist with both financial and personnel services in City Hall.

Legislators intend to fix the equalized HOST

In 2015, the General Assembly passed House Bill 215, which authorized a vote in 2016 for a new, "equalized" homestead option sales tax (HOST) and special purpose local option sales tax (SPLOST) that would alter the formula for a local sales tax for infrastructure improvements and property tax credit offsets. The legislature also approved HB 596, authorized a vote to extend the existing property tax "freeze," which locks in homeowner values for the purposes of county tax billing. HB 215 included language that said the freeze would be suspended if an equalized HOST were in effect. Realizing that this would increase homeowners' tax bills, officials have decided not to put the sales tax measure on the ballot. HB 596 will appear on November ballots as regularly scheduled to extend the freeze.

Members of the DeKalb legislative delegation is saying that they will work quickly in the 2017 session to correct HB 215 for a vote. Crossroads News has the details on the legislators' plans:

DeKalb delegation to change law hampering county SPLOST

The DeKalb delegation to the Georgia General Assembly is preparing to fix a state law that derailed a DeKalb County government Special Purpose Local Option Sales Tax in July.

The DeKalb Board of Commissioners was preparing to vote to place a 1 percent sales tax referendum on the Nov. 8 ballot to fund road paving and other infrastructure improvements when it discovered that House Bill 596 would have eliminated property tax relief for homeowners.

The SPLOST would have generated $551 million over five years with $377.7 million going to the county and the rest to the cities.

Now commissioners like Larry Johnson, who represents District 3 and is the BOC’s presiding officer, are pushing for the law to be amended. Johnson said more than $200 million will be spent in South DeKalb if voters approve the SPLOST.

“That is money that will fix our roads and improve our parks and libraries,” he said. “We need that money to make improvements.”

State Sen. Emanuel Jones, who attended a Sept. 20 SPLOST update meeting hosted by Johnson, said he is working to change the law in the early weeks of the 2017 legislative session so that the referendum can be on the March 2017 ballot. “It’s an accelerated time line but we can do it,” Jones told the meeting...