ExemptionsHOMESTEAD EXEMPTIONS HOMESTEAD EXEMPTIONSSeveral types of homestead exemptions have been enacted to reduce the burden of ad valorem taxation for Georgia homeowners. These exemptions apply to homestead property owned by taxpayer and occupied as his or her legal residence (some exceptions to this rule apply and your tax assessors office can explain them to you). To receive the benefit of the homestead exemption, the taxpayer must file an initial application. In Dougherty County, the application is filed with the Tax Assessors. Georgia law allows for the year-round filing of homestead applications but the application must be received by April 1 of the year for which the exemption is first claimed by the taxpayer. Homestead applications received after that date will be applied to the next tax year. Once granted, the homestead exemption is automatically renewed each year and the taxpayer does not have to apply again unless there is a change of ownership or the taxpayer seeks to qualify for a different kind of exemption. Under authority of the State Constitution several different types of homestead exemptions are provided. In addition, local governments are authorized to provide for increased exemption amounts and several have done so. The Tax Department can answer questions regarding the standard exemptions as well as any local exemption that are in place. The Local County Exemptions supercede the state exemption amount when the local exemption is greater than the state exemption. The City of Albany has such an exemption: The Standard Homestead Exemption is available to all homeowners who otherwise qualify by ownership and residency requirements and it is an amount equal to $2,000 which is deducted from the 40% assessed value of the homestead property. The exemption applies to the maintenance and operation portion of the mill rate levy of the county and county school system and the State mill rate levy. It does not apply to the portion of the mill rate levied to retire bonded indebtedness. The owner of a dwelling house of a farm that is granted homestead exemption may also claim a homestead exemption in participation with the program of rural housing under contract with the local housing authority. (O.C.G.A. 48-5-44) Surviving Spouse Homestead Exemption - An un-remarried surviving spouse may continue to receive the homestead exemption at the base value established for the deceased spouse, upon application and qualification. This exemption only applies to those counties that passed a local base year floating exemption. The Standard Elderly School Tax Homestead Exemption is an increased homestead exemption for homeowners 62 and older where the net income of the applicant and spouse does not exceed $10,000 for the preceding year. Social Security income and certain retirement income are excluded from the calculation of the income threshold. This exemption applies to school tax including taxes levied to retire bonded indebtedness. The amount of the exemption is up to $10,000 deducted from the 40% assessed value of the homestead property. (O.C.G.A. 48-5-52) The Standard Elderly General Homestead Exemption is available to homeowners who otherwise qualify and who are 65 and older where the net income of the applicant and spouse does not exceed $10,000 for the preceding year. Social Security income and certain retirement income are excluded from the calculation of the income threshold. This exemption, which is an amount up to $4,000 deducted from the 40% assessed value of the homestead property applies to county taxes, school taxes, and the state tax and it does apply to taxes levied to retire bonded indebtedness. (O.C.G.A. 48-5-47) Homestead Exemption for Senior Citizens is in an amount equal to the actual levy for state ad valorem tax purposes on the residence and no more than 10 acres of land. This exemption is in addition to any other homestead to which the applicant qualifies. The Disabled Veterans Homestead Exemption is available to certain disabled veterans or to the un-remarried spouse or minor children in an amount up to $50,000 deducted from the 40% assessed value of the homestead property. This exemption applies to all ad valorem tax levies; however, it is restricted to certain types of very serious disabilities and proof of disability, either from the Veterans Administration or from a private physician in certain circumstances. (O.C.G.A. 48-5-48) A similar exemption in the same amount is now available to the un-remarried surviving spouse of a member of the armed forces of the United States who was killed in any war or armed conflict engaged in by the United States. The surviving spouse must furnish appropriate documentation that spousal benefits are received as a result of the death of the armed forces member. (O.C.G.A. 48-5-52.1) Peace Officer or Firefighter Homestead Exemption is available for the surviving spouse, which provides an exemption for the full value of the homestead with respect to all ad valorem taxes for the un-remarried surviving spouse of a peace officer or firefighter who was killed in the line of duty. (O.C.G.A. 48-5-40) Tax Exemption for Farm Equipment is expanded to include tax exemption for agricultural products and equipment to include certain additional farm equipment held under a lease purchase agreement. The Floating or Varying Homestead Exemption is an exemption which is available to homeowner 62 or older with gross household income of $30,000 or less. The exemption applies to state and county ad valorem taxes but it does not apply to school tax. The exemption is called a floating exemption because the amount of the exemption increases as the value of the homestead property is increased. Since, however, the exemption replaces any other state and county exemption already in place for the property, taxpayers should be very careful in making application since in many instances the granting of this exemption will initially at least increase the amount of taxes levied on the property. (O.C.G.A. 48-5-47.1) Property Tax Deferral Program whereby qualified homestead property owners 62 and older with gross household income of $15,000 or less may defer but not exempt the payment of ad valorem taxes on a part or all of the homestead property. Generally, the tax would be deferred until the property ownership changes or until such time that the deferred taxes plus interest reach a level equal to 85% of the fair market value of the property. (O.C.G.A.48-5-72) With respect to all of the homestead exemptions, the Board of Tax Assessors makes the final determination as to eligibility; however, if the application is denied the taxpayer must be notified and an appeal procedure then is available for the taxpayer. HOMEOWNERS TAX RELIEF GRANTThe Homeowners Tax Relief Grant, authorized by the Governor and the General Assembly provides a tax relief credit in the amount of up to $8,000 in assessed value for all homeowners who are receiving one of the normal homestead exemptions. This relief is shown on the property tax bill for state, county, school, and city purposes as a credit against taxes that otherwise would have been due. The Homeowners Tax Relief Grant was not funded by the Governor and the General Assembly for the 2009 property tax year. Tax Commissioner Note: This grant will be solely from the legislature each year and is dependent upon future state funds being available. Should state funds not be available to grant this credit, your taxes will increase as the county, school system, and city is reimburses each year from the state by the amount of the credits granted on your tax bill . If state funds should not be available for disbursement, your tax bill will increase with no fault of the Tax Commissioner, the county, school system, or the city. For more information: SPECIALIZED AND PREFERENTIAL ASSESSMENT PROGRAMSTwo general types of specialized or preferential assessment programs are available for certain owners of certain types of property. One of these programs, Preferential Agricultural Assessment, authorizes assessment at 30% rather than 40% of fair market value for certain agricultural properties being used for bona fide agricultural purposes. The second type of preferential programs is the Conservation Use program which provides that certain agricultural property, timber land property, environmentally sensitive property, or residential transitional property is to be valued and assessed for ad valorem tax purposes at its current use value rather than its fair market value. Each of these specialized or preferential programs requires the property owner to covenant with the Board of Tax Assessors to maintain the property in its qualified use for at least 10 years in order to qualify for the preference. The Board of Tax Assessors can explain the ownership and use restrictions regarding property qualifying for either of these programs. WHAT IS CONSERVATION USE?Conservation Use was approved by an overwhelming majority of Georgia voters in an effort to encourage agricultural landowners to keep their land in production in exchange for favorable tax treatment. This favorable tax treatment is designed to protect these property owners from being pressured by the property tax burden to convert their land from agricultural use to residential or commercial use, hence the name "conservation use" assessment. In return for the favorable tax treatment the property owner must keep the land undeveloped in a qualifying use for a period of ten years or incur stiff penalties. Applications for current use assessment must be filed with the county Board of Tax Assessors on or before the last day for filing ad valorem tax returns in the county (April 1). A $10.00 recording fee must accompany all applications. QUALIFICATIONS
CONSERVATION USE VALUES
BREACH ON CONTRACT
OTHER FACTS
The Georgia Forest Land Protection ActThe Georgia Forest Land Protection Act of 2008 (A.C.T. 48-5-7.7) provides for an ad valorem tax exemption for property primarily used for the good faith subsistence or commercial production of trees, timber, or other wood fiber products and excludes the entire value of any residence located on the property. Forest land conservation use property may include land that has been certified as environmentally sensitive property by the Department of Natural Resources or property that is kept in accordance with a recognized sustainable forestry certification program. The property may have secondary uses such as the promotion, preservation, or management of wildlife habitat; carbon sequestration in accordance with the Georgia Carbon Sequestration Registry; mitigation and conservation banking that results in restoration or conservation of wetlands and other natural resources; or the production and maintenance of ecosystem products and services such as, but not limited to, clean air and water. This 15-year covenant agreement between the taxpayer and local board of assessors is limited to forest land tracts consisting of more than 200 acres when owned by an individual or individuals or by any entity registered to do business in Georgia. Property that qualifies for forest land conservation use assessment and that is already receiving preferential or current use assessment can be changed one time to a forest land conservation use covenant without penalty. Due date for application is April 1st. Rehabilitated and Landmark Historic Property Brownfield Property Each of these specialized or preferential programs requires the property owner to covenant with the Board of Tax Assessors to maintain the property in its qualified use for the specified term in order to qualify for the preference. The Board of Tax Assessors can explain the ownership and use restrictions regarding property qualifying for either of these programs. Substantial penalties result if the Covenant is broken. Additional information is available at:
http://www.etax.dor.ga.gov/ptd/cas/cuse/index.shtml FREEPORT EXEMPTIONThe governing authority of any county or municipality may, subject to the approval of the electors of such political subdivision, except from ad valorem taxation, including all such taxes levied for educational purposes and for State purposes, all or any of the following types of tangible property. Application for this exemption must be made each year by April 1 in order to receive the maximum exemption on qualifying Inventory.
For further details on Freeport exemption, read O.C.G.A. 48-5-48.2 in its entirety or contact the Tax Assessors office. Also use the following link: |