PROPERTY TAX LAWS INFORMATION SESSION MONDAY MARCH 28, :00AM 12:00PM GEORGIA FARM BUREAU 1600 BASS ROAD MACON, GA 31209

Transcription

1 PROPERTY TAX LAWS INFORMATION SESSION MONDAY MARCH 28, :00AM 12:00PM GEORGIA FARM BUREAU 1600 BASS ROAD MACON, GA 31209

2 Impact on Local Government VICKI LAMBERT GEORGIA DEPARTMENT OF REVENUE

3 Senate Bill 346 Sweeping reform of Property tax assessments Appeal process Assessment notices Training Tax billing Advertising Digest Submission

4 Annual Notices of Assessment Annual notice to all owners of real property Notice to owners of personal property if return value p p p y not accepted

5 Annual Notices of Assessment Notice must include estimate of current year s taxes based on new proposed assessment using prior year millage rate Estimate for all tax jurisdictions

6 Annual Notices of Assessment What can you expect? More telephone calls Folks stopping you at the grocery store Maybe wanting to

7 Annual Notices of Assessment Increased costs of doing business Printing Postage Increase in # of appeals

8 Shifting of Duties Responsibility for clerk of court to oversee and supervise the board of equalization and hearing officers Shifting hf of responsibility bl Transfer of budgeted funds and/or personnel

9 New Budget Items Need for one or more additional boards of equalization Add a board for every 10,000 parcels Salary Training

10 New Budget Item Hearing Officer Non-homestead real property with a value in excess of $1,000,000 may file appeal to hearing officer Issues Budget -- Minimum hourly rate of $25/hour How many appeals will be filed requesting hearing officer? How many hours? 26 hearing officers have been certified by DOR and GREAB

11 Appointing Assessors Education requirement amended BOA members must be high school graduate or equivalent Experience no longer a substitute for education

12 New Opportunity Regional board of equalization 2 or more counties Intergovernmental agreement Specify how grand jury will appoint member and alternate t from each county Which clerk of court will have oversight Hearings held in property owner s county

13 Digest Review Process Tax years 2009, 2010 & 2011 No ¼ mill assessment No $5/parcel penalty

14 Refund Process Amends O.C.G.A Requires county to refund taxes which are determined to be Erroneously or illegally assessed Voluntarily or involuntarily overpaid Clarifies that proportional share of refund paid from funds of each taxing/levying authority Requires adoption of rules and regulations for administration of this code section

15 Changes to Billing Allows for billing of taxes in installments No longer limited to 2 installments Includes fees and special assessments in this code section Adopt Resolution prior to December 31 prior to the tax year implemented Establish due dates for each installment payment Set a due date earlier than Dec 20 th for final installment Provides for installments due prior to finalizing the tax digest to be based on prior years tax bill

16 Payments Allows county to accept any form of payment Credit cards Perhaps..

17 Public Utilities Allow billing of public utility values after August 1, if commissioner has not furnished current year digest Based on 85% of prior year value

18 Digest Submission Notice of Property Tax Increase Hearings Ad must be at least 30 square inches Advertise only county M & O millage Publish on website in addition to newspaper Include the rollback millage rate as well as % of increase Show increase in tax bill on average price home & average non- residential i property Commissioner cannot approve digest if all the i are not dotted and the t are not crossed!

19 Digest Submission Digest can be submitted at any time # of appeals or value in dispute falling below either 3% or 5% threshold removed Communication between county officials essential Require certification signed by board of assessors, county governing authority, school board acknowledging amount of value in dispute at time of digest submission

20 Questions??

21 Impact to Tax Assessors & Tax Digest ASSESSING THE CHALLENGES: HOW SB 346 WILL IMPACT 2011 TAX DIGEST & COUNTY BUDGET JOHN SCOTT, EXECUTIVE DIRECTOR GEORGIA ASSOCIATION OF ASSESSING OFFICIALS

22 General Considerations for 2011 Real Estate Market, Better or Worse? Foreclosed and/or Bank owned inventory New Construction starts Unsold but Developed Lot Inventory Your local market compared to national media reports of market Public perception of Government Other Digest factors, Personal Property, Timber, Motor Vehicle, Mobile Homes Assessors Office staff is swamped!!!

23 SB 346 Passed in 2010 Session Consensus was that some type of tax Reform was coming Consortium of Tax Assessors, Tax Attorney s, Tax Representatives and Local Govt. groups met many times for many hours. Is substantially different than when first introduced. Better or Worse??? We think better, but challenges for implementation remain.

24 FMV Impact to Assessors Office Substantial changes to the way we arrive at Fair Market Value. Assessors shall apply distress sale, short sale, bank sale, or sale at public auction in determining a bona fide arms length sale in arriving at FMV. Shall: (in laws, directives, etc.) must; is or are obliged to: The meetings of the council shall be public. Apply: 3. (in laws, directives, etc.) must; is or are obliged to: The meetings of the council shall be public. Prior to SB 346, we must consider all factors deemed pertinent.

25 Consider vs. Apply Peachtree???? Which carried the most relevance? If my Daddy said: Son I am considering i getting a peach tree switch and wearing you out OR Applying that peach tree switch to my backside

26 Summary of FMV Changes Amendments to O.C.G.A New definition of arm s length, bona fide sale Requires consideration of income approach, if data is available, on income-producing gpropertiesp Change language from consider to apply for criteria to be considered in determining fair market value Revenue commissioner can designate other criteria Adds restriction on including value of intangible assets in determining the value of real property Sales Qualification is a must!!!! 2010 Transaction price (sales price) is the taxable value for the 2011 tax year

27 2010 Transaction price (sales price) is the taxable value for the 2011 tax year This includes Bank Sales of Foreclosed Property Having a dramatic impact on Digest Data from 80 Counties gathered mid March shows 2011 Digest Shift hf from Sold to Unsold Properties 33,961 Parcels lowered as per SB 346, Shift in Tax Dollars, $281,975, incomplete data for 80 counties! Moratorium will not allow reassessment of under valued properties, p,40% of Parcels estimate End result: Lack of Uniformity, Taxpayer Anger, Distrust in system. Largest source of County M&O Funding

28 Annual Assessment Notice Impact Every Taxable Parcel will receive a Notice of Assessment in Each Notice must contain Tax Estimate Estimate based on current value and prior year millage and all fees Cost of Complying not only mailing Major Software upgrades and cost Staff Training is ongoing

29

30 What to Expect??? Effect of every taxpayer in your county getting a Notice of Assessment on every parcel they own?? Every Taxpayer in Georgia?? We think whatever value they receive will not be what they expect. We think many will be appealing the tax estimate Some think we might see as much as 10% Appeals Why is my neighbor less than mine? SB 346 Lock Assessors Office Staff will be very busy!!!

31

32 New Appeal Options BOE, taxability, uniformity, value, exemption denial, breach of covenants Arbitration: value disputes only Hearing Officer: value and uniformity for nonhomestead real property with FMV in excess of $1,000,000

33 Change in BOE Oversight Clerk of Court designated to have power of oversight and supervision over BOE and Hearing Officers Clerk oversight / supervision includes: Scheduling hearings Giving notice of hearing date, time, place Giving notice of decisions Best part of SB 346, Taxpayer hopefully feel neutrality from Assessors Office.

34 Impact on Publishing Hearings Tax Increase adds only apply to M&O millages Advertisement of increase must appear on levying authority s website New advertisement language Ad size must be at least 30 square inches Ad must be posted on website one week prior to hearing Ad may include reasons or explanations DOR shall not accept a digest having a millage higher than roll-back rate unless proper advertisement exists.

35 Roll Back Language This tentative increase will result in a millage rate of (proposed millage rate) mills, an increase of (millage rate increase above the roll-back rate) mills. Without this tentative tax increase, the millage rate will be no more than (roll-back millage rate) mills. The proposed tax increase for a home with a fair market value of (average home value from previous year s digest rounded to the nearest $25,000) is approximately $(increase) and the proposed p tax increase for nonhomestead property with a fair market value of (average nonhomestead property value from previous year's digest rounded to the nearest $25,000) is approximately $(increase).

36 Impact on Digest Submission Removed the requirement for value in dispute be 5% or less when county has performed a countywide reappraisal Remove the requirement for value in dispute to be 3% or less when county has not performed a reappraisal CRITICAL POINT> You need to understand how much value is in dispute when you set your millage rate. Failure to account for loss on value from appeal resolution could cause big problems.

37 In Closing It will be a long hot summer Assessors and staff are working hard and have had many opportunities for training on this Property Tax is unpopular but the services they provide are not. Connect taxpayers with the value of local l control Thomas Jefferson said, That government closest to the people is best Lastly,

38 28 years in the Assessors Office has taught me this truism When the Blood is in the water The When the Blood is in the water The Sharks don t care who they eat!!!

39 Questions??

40 UNDERSTANDING YOUR ASSESSMENT NOTICE PRESENTED BY: FULTON COUNTY BOARD OF ASSESSORS

41 Changes for 2011 Annual Assessment Notices Standardized Forms Additional Appeal Options

42 VARIOUS MEETINGS All Taxing Districts Consultants and Attorneys (Tax Reps) Eight Public Meetings

43 FULTON COUNTY 2011 DIGEST UPDATE MARCH 11, 2011

44 FULTON COUNTY DIGEST 2005 THROUGH Current

45

46

47

48 Burt Manning FULTON COUNTY CHIEF APPRAISER

49 Questions??