Exemptions

HOMESTEAD EXEMPTIONS
SPECIALIZED AND PREFERENTIAL ASSESSMENT PROGRAMS
FREEPORT EXEMPTION
APPEALS

HOMESTEAD EXEMPTIONS

Several 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 and 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 Jefferson County, the application is filed with the Tax Assessors Office. The application must be filed no later than April 1 of the year for which the exemption is first sought.

Once granted, the homestead exemption is automatically renewed each year. The taxpayer does not have to apply again unless there is a change in ownership of property or the taxpayer seeks to qualify for a different kind of exemption.

Under the 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 assessors office in Jefferson County can answer questions regarding the exemptions that are in place.

HOMESTEAD EXEMPTION FILING DEADLINE IS April 1st.

Homestead exemptions may be filed for any time during the year. However, exemptions must be filed for by April 1 to apply to the current tax year. You must still own and occupy the property as of January 1 to be eligible.

  • Standard Homestead Exemption
    The home of each resident of Georgia that is actually occupied and used as the primary residence by the owner may be granted a $2,000 exemption from county and school taxes except for school taxes levied by municipalities and except to pay interest on and to retire bonded indebtedness. The $2,000 is deducted from the 40% assessed value of the homestead.
  • Individuals 65 Years of Age and Older May Claim a $4,000 Exemption
    Individuals 65 years of age or over may claim a $4,000 exemption from all county ad valorem taxes if the income of that person and his spouse does not exceed $10,000 for the prior year. Income from retirement sources, pensions, and disability income is excluded up to the maximum amount allowed to be paid to an individual and his spouse under the federal Social Security Act. The social security maximum benefit for 2018 is $66,912. The owner must notify the tax assessors office if for any reason they no longer meet the requirements for this exemption. (O.C.G.A. 48-5-47)
  • Individuals 62 Years of Age and Older May Claim a $10,000 Exemption
    Individuals 62 years of age or over that are residents of each independent school district may claim an additional exemption from all ad valorem taxes for educational purposes and to retire school bond indebtedness if the income of that person and his spouse does not exceed $10,000 for the prior year. Income from retirement sources, pensions, and disability income is excluded up to the maximum amount allowed to be paid to an individual and his spouse under the federal Social Security Act. The social security maximum benefit for 2018 is $66,912. The owner must notify the tax assessors office if for any reason they no longer meet the requirements for this exemption. This exemption may not exceed $10,000 of the homestead's assessed value. (O.C.G.A. 48-5-52)
  • Homestead Exemption for Disabled Veterans
    Any qualifying disabled veteran may be granted an exemption of $81,080 in 2018 from paying property taxes for state, county, municipal, and school purposes. The value of the property in excess of this exemption remains taxable. This exemption is extended to the unremarried surviving spouse or minor children. (O.C.G.A. 48-5-48)
  • Homestead Exemption for Unremarried Surviving Spouse
    The surviving spouse of a member of the armed forces who was killed in any war or armed conflict will be granted a homestead exemption from all ad valorem taxes for state, county, municipal and school purposes in the amount of $81,080 in 2018. The surviving spouse will continue to be eligible for the exemption as long as they do not remarry. (O.C.G.A. 48-5-52.1)


With respect to all of the homestead exemptions, the board of tax assessors makes the final determination as to eligibility. If the homestead application is denied, the taxpayer must be notified and an appeal procedure then is available to the taxpayer. For more information: https://dor.georgia.gov/documents/lgs-homestead-application-homestead-exemption

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SPECIALIZED AND PREFERENTIAL ASSESSMENT PROGRAMS

There are three types of specialized assessment programs available:
  1. CONSERVATION USE (CUVA)
  2. PREFERENTIAL USE (PFA)
  3. FOREST LAND PROTECTION ACT (FLPA)

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. Substantial penalties result if the covenant is broken. Additional information is available at: https://dor.georgia.gov/table-conservation-use-land-values

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 on 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 recording fee must accompany all applications. Please contact the assessors office for the filing fee amount.

PARTIAL LIST OF QUALIFICATIONS

  • Owner must be an individual or family farm corporation, estate, trust or non-profit organization.
  • Owner agrees to maintain the property in a qualifying use of "good faith" production of agricultural products or timber for 10 years.
  • Owner cannot have over 2,000 acres statewide in the Conservation Use Program.

CONSERVATION USE VALUES

  • Conservation values are set by the State of Georgia and cannot be appealed by the taxpayer, however the Board of Tax Assessors must still maintain the fair market value on the property which may still be appealed by the taxpayer.
  • The Conservation values established by the state are made up of a combination of the capitalized income that could be produced from the land and market value. The ratio is 65% income and 35% fair market value.
  • The maximum amount that conservation values may be increased is 3% per year or a maximum of 34.39% over the 10-year Covenant.
  • The amount of savings on your tax bill cannot be determined at this time. The valuation for conservation use is available on your property upon request. You then can compare the fair market value to the conservation use value.
  • Agricultural buildings may be included in the covenant. Although, the current values will not change on the buildings, these buildings would be subject only to the 3% per year maximum increase.

BREACH ON CONTRACT

  • If the owner breaks the Covenant a penalty of twice the taxes saved by the taxpayer will be imposed and interest at the rate of 1% per month will be assessed if not immediately reported.
  • If the Covenant is broken as a result of death or eminent domain (condemnation) no penalty will be assessed.
  • If the Covenant is broken as a result of medically demonstrable illness or foreclosure, the penalty will be the amount of taxes saved for the current year only.
  • Leases or contracts for billboard signs, cellular towers, or any type of non-qualifying use will breach the Covenant and all penalties will apply. Hunting leases are allowed.
  • If the property is sold, and if the purchaser continues using the property as it was originally covenanted then no penalty would be assessed. Purchaser must sign covenant agreeing to no change in use. However, the taxpayer should be aware that if the use changes during the 10-year period all penalties would apply.

PREFERENTIAL ASSESSMENT

Preferential assessment is similar agricultural program to CUVA with all the same qualifying standards and limitations. The difference is CUVA vales are based on soil productivity levels and Preferential Assessment is based on fair market value taxed at 30% instead of the normal 40%.

FOREST LAND PROTECTION ACT (FLPA)

Forest land conservation use property means forest land each tract of which consists of more than 200 acres of tangible real property of an owner subject to certain qualifications.

Such property has as its primary use the good faith subsistence or commercial production of trees, timber, or other wood and wood fiber products from or on the land. Such property may, in addition, have one or more secondary uses.

Forest land conservation use property may include, but not be limited to, land that has been certified as environmentally sensitive property by the Department of Natural Resources or which is managed in accordance with a recognized sustainable forestry certification program such as the Sustainable Forestry Initiative, Forest Stewardship Council, American Tree Farm Program, or an equivalent sustainable forestry certification program approved by the Georgia Forestry Commission.

No property shall qualify for conservation use assessment under this Code section unless and until the qualified owner of such property agrees by covenant with the appropriate taxing authority to maintain the eligible property in forest land conservation use for a period of 15 years beginning on the first day of January of the year in which such property qualifies for such conservation use assessment and ending on the last day of December of the final year of the covenant period. 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. Substantial penalties result if the covenant is broken.

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FREEPORT EXEMPTION

The 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 along with the yearly return must be made each year by April 1 in order to receive the maximum exemption on qualifying Inventory.

  1. nventory of goods in the process of manufacture or production, which shall include all partly finished goods and raw materials, held for direct use or consumption in the ordinary course of the taxpayer's manufacturing or production business in the State of Georgia.
  2. Inventory of finished goods manufactured or produced within the State of Georgia in the ordinary course of the taxpayer's manufacturing or production business when held by the original manufacturer or producer of such finished goods. The exemption provided for herein shall be for a period not exceeding twelve (12) months from the date such property is produced or manufactured.
  3. Inventory of finished goods which, on the first day of January, are stored in a warehouse, dock or wharf, whether public or private, and which are destined for shipment to a final destination outside the State of Georgia and inventory of finished goods which are shipped into the State of Georgia from outside the State and stored for transshipment to a final destination outside this State. The exemption provided for herein shall be for a period not exceeding twelve (12) months from the date such property is stored in this State.

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: https://dor.georgia.gov/freeport-exemption

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ASSESSMENT APPEALS

The Board of Assessors mails Notices of Assessment annually. Upon receipt of this notice, the property owner desiring to appeal must do so within 45 days of the date of the notice.

The assessment appeal may be made on the basis of taxability of the property, the value placed upon the property, or the uniformity of that value when compared to other similar properties in the county. Appeals may also be made for denial of covenant, breach of covenant, or denial of homestead. The appeal must be filed within the applicable time period and cannot be filed after that time. Additionally, the appeal should not be based on any complaint regarding the amount of taxes levied on the property.

For more information on the Appeals Process please go to: https://dor.georgia.gov/property-tax-appeals



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