Source: https://georgiatitle.com/Real-Estate-Taxes/Georgia-Ad-Valorem-Taxes/index.html
Timestamp: 2020-02-23 08:43:42
Document Index: 797295617

Matched Legal Cases: ['§ 48', '§ 48', '§ 48', '§ 48', '§ 48', '§ 48', '§ 48', '§ 48']

Georgia Title | Real Estate Property Taxes & Closing Prorations
Georgia Property Taxes Explained
The information on this page is intended to proved some basic information on the treatment of real estate taxes, also known as ad valorem taxes, in Georgia. It is important for property owners to understand the tax and billing process since tax bills constitute a lien on the property on January 1st of each year.
To read some general information on Georgia property taxes–
To understand more about closing prorations–
To see a list of Georgia property tax exemptions, including the Homestead Exemption–
To learn about filing a Real Property Tax Return–
Please note that the information on this page provides basic information only on Georgia Ad Valorem Taxes and is not intended to be exhaustive. Properties in some jurisdictions are subject to additional taxes which may or may not be included in the respective county or city tax bill. Examples of these include sanitation taxes and water bills. Property owners or prospective purchases should make property specific inquiries with appropriate government officials to ascertain applicable taxes, or consult an attorney.
Have questions on how taxes and other items are treated at closing?
GA Tax Prorations
Atlanta, GA 20326
678.448.4148 Telephone
General Information on Georgia Ad Valorem Taxes
Tax Year – Statewide Uniform
The Georgia real estate tax year runs on a calendar year basis (i.e. from January 1st through December 31st).
Taxes are assessed on a current year basis.
For example, a tax bill issued on July 1st of a given year would cover taxes for that specific year. This means that a bill generated for 2013 covers the tax year for all of 2013 and not 2012 or 2014.
Timing of Tax Bills – Varies among Counties
There is no uniformity among the counties as to when a particular county will issue its tax bill.
Generally, tax bills are issued by the county tax commissioner in the fall of each year.
Some counties issue bills payable in two installments. The due dates are specified in the tax bill and are typically evenly divided, payable in the Fall.
A tax bill issued on July 1st of a given year would cover taxes for that specific year. For further clarification, a bill issued in the Fall of year 2020 would cover property taxes for all of 2020 and not for any of year 2019 or 2021.
County Tax Assessors are responsible for appraising property.
Georgia Law requires that all real estate and tangible personal property be appraised annually at its fair market value.
Appraisal notices are sent to property owners in the Spring.
County Tax Commissioners are responsible for collecting real estate taxes.
County issued tax bills include Georgia State taxes (i.e. property owners in Georgia are not issued separate bills from the State).
Where applicable, City jurisdictions may issue separate tax bills, or they may be included in the County tax bill.
Understanding Closing Prorations
You're closing in the middle of the year...
How are taxes treated at closing if the seller has already paid the tax bill? Or, what if the tax bill has already been paid? The purpose of calculating prorations is to ensure that both buyer and seller pay their fair share of the total tax bill. The following explains how taxes and other prorated items are treated at closing—
When a tax bill has not yet been issued...
In Georgia, tax bills are generally issued in the Fall of each year. So, closing in the Spring or Summer will generally mean that the buyer will be responsible for paying the actual bill when it is issued.
To avoid getting a freebee, the seller will prepay a prorata share of the taxes to the buyer at the time of closing. The prorata share will be based on the number of days between January 1st and the day of closing. When the bill is issued, it will be the responsibility of the new owner to pay the entire year since at closing the buyer already received the seller's prorata share.
When a tax bill has been issued and paid...
Since tax bills in Georgia are generally issued in the Fall, a closing in the Fall or Winter may mean that the seller has already paid the tax bill for the entire year.
To avoid getting a freebee, the buyer will reimburse a prorata share to the seller at the time of closing. The prorata share will be based on the number of days between the day of closing and December 31st, since Georgia tax bills run on a calendar year.
In either case, each party only pays his fair share.
Property tax exemptions in the State of Georgia are offered at the State level and at the County level. The information below discusses the Homestead Exemption in general, since this exemption is perhaps the most widely used. It is important to note that County specific exemptions are generally better than their State counterparts and, in addition, there may be more or different exemptions than those at the State level. Therefore, individual County tax commissioner offices are the best source for comprehensive exemption information available.
Criteria for Homestead Exemption
WHERE the Homestead Exemption is Filed
Application for homestead exemption must be filed with the tax commissioner's office, or in some counties the tax assessor's office has been delegated to receive applications for homestead exemption.
WHEN the Homestead Exemption is Filed
GA Code § 48-5-44 – Basic 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 a homestead exemption may also claim a homestead exemption in participation with the program of rural housing under contract with the local housing authority.
GA Code § 48-5-48.3 – 65 Years of Age and Older Exemption
Individuals 65 Years of Age and Older May Claim an exemption from state tax on their home and 10 acres of land surrounding the home
Individuals 65 years of age or over may claim an exemption from all state ad valorem taxes on their home and up to 10 acres of land surrounding the home. Ad valorem tax for state purposes will be due on the assessed value of land that exceeds the 10 acre limitation.
GA Code § 48-5-47 – 65 Years of Age and Low Income 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 benefits for 2014 is $63,408. The owner must notify the county tax commissioner if for any reason they no longer meet the requirements for this exemption.
GA Code § 48-5-52 – 65 Years of Age Education Exemption
Individuals 62 years of age or over that are residents of each independent school district and of each county 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 benefits for 2014 is $63,408. The owner must notify the county tax commissioner 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.
GA Code § 48-5-47.1 – Floating Inflation-Proof Exemption
Individuals 62 years of age or over may obtain a floating inflation-proof state and county homestead exemption, except for taxes to pay interest on and to retire bonded indebtedness, based on natural increases in the homestead's value. If the appraised value of the home has increased by more than $10,000, the owner may benefit from this exemption. Income, together with spouse or any other person residing in the house, can not exceed $30,000. This exemption does not affect any municipal or educational taxes and is meant to be used in the place of any other state and county homestead exemption.
GA Code § 48-5-48 – Disabled Veteran or Surviving Spouse Exemption
Homestead Exemption for Disabled Veteran or Surviving Spouse
Any qualifying disabled veteran may be granted an exemption of $60,000 plus an additional sum from paying property taxes for state, county, municipal, and school purposes. The additional sum is determined according to an index rate set by United States Secretary of Veterans Affairs. The amount for 2014 is $67,555.The value of the property in excess of this exemption remains taxable. This exemption is extended to the unremarried surviving spouse or minor children as long as they continue to occupy the home as a residence.
GA Code § 48-5-52.1 – Surviving Spouse of U.S. Service Member Exemption
Homestead Exemption for Surviving Spouse of U.S. Service Member
The unremarried surviving spouse of a member of the armed forces who was killed in or died as a result of 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 $60,000 plus an additional sum. The additional sum is determined according to an index rate set by United States Secretary of Veterans Affairs. The amount for 2014 is $67,555. The surviving spouse will continue to be eligible for the exemption as long as they do not remarry.
GA Code § 48-5-48.4 – Surviving Spouse of Peace Officer or Firefighter Exemption
Homestead Exemption for Surviving Spouse of Peace Officer or Firefighter
The unremarried surviving spouse of a peace officer or firefighter killed in the line of duty will be granted a homestead exemption for the full value of the homestead for as long as the applicant occupies the residence as a homestead.
Filing the Property Tax Return
The purpose of a Real Property Tax Return is to advise the county tax assessor's office of a change in value. Since each county is required to assess every parcel in its jurisdiction every year, filing a return is a proactive way to put the assessor on notice of a change in value. In the context of a property purchase, for example, if the sales prices is less than the county's appraised value, it may be helpful to file a return in the current year, since the assessor may not pick up on the recent sale until the following year.
HOW is Filing Used
Filing a Property Tax Return will–
Notify the county of a decrease in property value, for example, where a property has recently sold.
Notify the county of an increase in property value, for example, where the property is improved before the next county assessment.
Notify the county of a change of mailing address.
Notify the assessor of disputed value, before filing a tax appeal.
Residents and non-residents that own real property in Georgia.
Property tax returns are required to be filed by April 1.
The Tax Commissioner or the Tax Assessor in the county where the property is located.
Contact your local tax assessor or commissioner's office.