- HOMESTEAD EXEMPTIONS
- SPECIALIZED AND PREFERENTIAL ASSESSMENT PROGRAMS
- FREEPORT EXEMPTION
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 Troup County,
the application is filed with the Tax Commissioners Office. The application must be filed between January 1 and April
1 of the year for which the exemption is first claimed by the taxpayer. The homestead application is normally filed at
the same time the initial tax return for the homestead property is filed.
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 Troup County can answer questions regarding the standard exemptions as well as any local exemptions that are in place.
The Local County Exemptions supercede the state exemption amount when the local exemption is greater than the state exemption.
Once homestead is granted you do not have to apply again unless there is a change of ownership including a Deed of Trust,
name or spelling correction on the Deed, or if you seek to qualify for a different type of exemption which would follow regular
homestead. Refinancing your property will not affect your exemption; however if you are adding or deleting a name to the vesting
deed, you will need to refile for your homestead.
HOMESTEAD EXEMPTION FILING DATES ARE JANUARY 1st THROUGH April 1st.
Effective June 1, 2005 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.
In addition to the various homestead exemptions that are authorized, the law provides a Property Tax Deferral Program whereby qualified homestead
property owners 62 and older with a gross income of $15,000 or less may defer but not exempt the payment of ad valorem taxes on 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.
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:
- 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 state, 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. 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)
- 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 state and 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 2005 is $46,536. 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 an 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 2005 is $46,536. 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 $50,000 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 $50,000. 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)
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SPECIALIZED AND PREFERENTIAL ASSESSMENT PROGRAMS
Two general types of specialized of preferential assessment programs are available for certain owners of certain types of property. One of these
programs authorizes assessment at 30% instead of 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 and 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. For more information on Conservation Use we have included the following Information.
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 $10.00 recording fee must accompany all applications.
CONSERVATION USE VALUES
- 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.
- The Tax Assessors Office may request additional information regarding the use of the property if the office feels it is necessary to determine
if the property qualifies for the exemption. Information that may be requested is Schedule F (Profit or Loss from Farm Income), Form 4562 Depreciation,
or Crop Production Records the owner maintains. (mandatory on tracts less than 10 acres)
BREACH ON CONTRACT
- 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.
- 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.
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:
- If the owner desires to omit a portion of a tract from the Covenant they must present to the Assessors' satisfaction a clearly defined description of the portion
under the Covenant and a clearly defined description of the portion not under the Covenant.
- The property owner may give up to 5.0 acres to a relative within the 4th degree of civil reckoning provided that relative builds a house on the property received
within one year and resides in the house for the remainder of the 10-year period.
- Property is allowed to lie fallow or idle for up to 2 years within any 5-year period.
- Property owners over age 65 who renew their Covenant may elect after 3 years into the second 10-year Covenant to terminate the Covenant by filing in writing a
declaration with the Tax Assessors' office.
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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
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: Click Here
- Inventory 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.
- 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.
- 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.
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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 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 of the date of the notice. The appeal is filed with the Board of Tax Assessors, which reviews the appeal filed and informs the taxpayer of its decision.
If the Board of Tax Assessors makes no changes, the appeal is automatically forwarded to the County Board of Equalization. A hearing is scheduled, 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 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 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 regarding the amount of taxes levied on the property.
For more information on the Appeals Process
please go to:
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