IMPORTANT TAXPAYER INFORMATION CONCERNING

PROPERTY TAX IN PAULDING COUNTY

GENERAL INFORMATION

Ad valorem tax, more commonly known as property tax, is a large source of revenue for local governments in Georgia.  The basis for ad valorem taxation is the fair market value of the property as it exists on January 1 of each year.  As established by law, the tax is levied on 40% of the fair market value, which is also referred to as the assessed value of the property.  The amount of tax is determined by the tax rate (mill rate) levied by various entities (one mill is equal to $1.00 for each $1,000 of assessed value, or .001).

Several distinct entities are involved in the ad valorem tax process.

The Paulding County Board of Tax Assessors, appointed for 3 year terms by the county Commissioner(s), are the officials responsible for receiving property tax returns and applications for homestead exemption.  The Assessors are responsible for determining taxability, appraisal, assessment, and the equalization of all assessments within the county.  They notify taxpayers when changes are made to the value of the property, they receive and review all appeals filed, and they insure that the appeal process proceeds properly.  In addition, they approve all exemptions claimed by the taxpayer.

The Paulding County Board of Equalization, appointed by the Grand Jury, is the body charged by law with hearing and adjudicating administrative appeals of property values and assessments set by the Board of Tax Assessors.  (Note: An arbitration or binding arbitration method of appeal is available to the taxpayer in lieu of an appeal to the Board of Equalization at the option of the taxpayer at the time the appeal is filed.)

In Paulding County, the Tax Commissioner is an elected official. The Tax Commissioner’s office, established by the Constitution, serves as agent of the State Revenue Commissioner for the registration of motor vehicles and performs all functions relating to billing, collecting, disbursing, and accounting for ad valorem taxes collected in the county.

The Paulding Board of County Commissioners, an elected body, establishes the budget for county government operations each year.  They then levy the mill rate necessary to fund the portion of the budget to be paid for by ad valorem tax.

The Paulding County Board of Education, also an elected body, establishes the annual budget for school purposes and they recommend their mill rate, which, with very few exceptions, must be levied for the school board by the county commissioners.

The State Revenue Commissioner, exercises general oversight of the entire and valorem tax process.  In addition, the State levies ad valorem tax each year in an amount, which cannot exceed one-fourth of one mill (.00025).

TAX RETURNS

Taxpayers are required to file at least an initial tax return for taxable property (both real and personal property) owned on January 1 of the tax year.  In Paulding County, the time for filing returns is January 1 through April 1.  These returns are filed with the Tax Assessors and forms are available in that office.  The tax return is a listing of the property owned by the taxpayer and the taxpayer’s declaration of the value of the property.

Once the initial tax return is filed, the law provides for an automatic renewal of the return each succeeding year at the value finally determined for the proceeding year.  The taxpayer is required to file a new return only as additional property is acquired, improvements are made to existing property, or other changes occur.  A new return, filed during the return period, may also be made by the taxpayer to declare a different value from the

Existing value where the taxpayer is dissatisfied with the current value placed on the property by the Board of Tax Assessors.  This serves the purpose of establishing the taxpayer’s appeal rights if the declared value is changed again by the Board of Assessors.

HOMESTEAD EXEMPTIONS

Several types of homestead exemptions have been enacted to reduce the burden of ad valorem taxation for Georgia homeowners.  The exemptions apply to homestead property owned by the taxpayer and occupied as his or her legal residence.

To receive the benefit of the homestead exemption, the taxpayer must file an initial application in Paulding County.  The application is filed with the Tax Assessors Department.  Applications are accepted year-round, but must be filed by April 1 of the year for which the exemption is first claimed by the taxpayer.

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 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 Department in Paulding County can answer questions regarding the standard exemptions as well as any local exemptions that are in place.

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 applied to the maintenance and operation portion of the mill rate levy of the county and the 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 STANDARD ELDERLY SCHOOL TAX HOMESTEAD EXEMPTION is an increased homestead exemption for homeowners 62 and older where a gross income from all family members residing in the home does not exceed $10,000 for the preceding year.  This exemption applies only to school tax but it does include 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.

The STANDARD ELDERLY GENERAL HOMESTEAD EXEMPTION is available to homeowners who otherwise qualify and who are 65 and older where a 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 in an amount up to $4,000 deducted from the 40% assessed value of the homestead property applied to county taxes, school taxes, and state tax and it does apply to taxed levied to retire bonded indebtedness.

The DISABLED VETERANS HOMESTEAD EXEMPTION is available to certain veterans 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 100% service connected disabilities that are total and permanent.  Proof of disability, either from the Veterans Administration or from a private physician in certain circumstances, is required.

UN-REMARRIED SURVIVING SPOUSE OF A PEACE OFFICER OR FIREFIGHTER is available if you are an un-remarried surviving spouse of a police officer or firefighter killed in the line of duty you are entitled to receive 100% exemption from state, county, county school, independent school, municipal, and bond taxes.  This exemption is in lieu of any existing exemptions.  Documentation required.

The FLOATING OR VARYING HOMESTEAD EXEMPTION is an exemption available to homeowners 62 or older with a 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.

The HOMESTEAD TAX RELIEF GRANT that funded an increased homestead exemption for homeowners for several years will only be available in the future if state revenues increase at least 3% plus the rate of inflation.  This was established in 2009 by House Bill 143. 

In addition to the various homestead exemptions that are authorized, the law also provides a PROPERTY TAX DEFERAL PROGRAM whereby qualified homestead property owners 62 and older with a 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 the deferred taxes plus interest reach a level equal to 85% of the fair market value of the property.

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.

SPECIALIZED AND PREFERENTIAL ASSESSMENT PROGRAMS

Two general types of specialized or preferential assessment programs are available for certain owners of certain types of property.  One of these programs authorizes assessment at 30% rather than 40% of the fair market value for certain agricultural properties being used for bona fide agricultural purposes.

The second type of preferential program 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 the 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.

ASSESSMENT APPEALS

When the Board of Tax Assessors changes the value of property from the value in place for the preceding year or from the value that was returned by the taxpayer for the current year, a notice of that change must be sent to the property owner.  Upon receipt of this notice the property owner desiring to appeal the change in value must do so within 45 days.  The appeal is filed with the Board of Tax Assessors who reviews again their valuation and the appeal filed and informs the taxpayer of its decision.  If the taxpayer remains dissatisfied, the appeal is forwarded to the County Board of Equalization.  A hearing is scheduled and conducted and the Board of Equalization renders its decision.  If the taxpayer is still dissatisfied with the decision, an appeal to Superior Court may be made.

In lieu of an administrative appeal with the Board of Equalization, an arbitration, or binding arbitration method of appeal is also available to the taxpayer.  The Board of Tax Assessors can provide details regarding this procedure.  The assessment appeal may be made on the basis of the 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.  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 about the amount of taxes levied on the property.