Georgia Tax Appeals

Posted by Daniel Jones on Feb 17, 2011 4:59:00 PM
Georgia Senate Bill 346 included many changes to the property tax law. Last time I addressed this subject I discussed the changes to the fair market value definition. The change discussed was the inclusion of distressed sales as comparable sales that must be considered.

SB 346 also mandates that a recent sale shall be considered the fair market value: The transaction amount of the most recent arm's length., bona fide sale in any year shall be the maximum allowable fair market value for the next taxable year.

So, if you bought your property in 2010 for $500,000 the maximum fair market value estimate the assessor can put on it for tax year 2011 is $500,000 which is a $200,000 assessment (40%).

The transaction amount can be adjusted for the following reasons:
1. Personal property included in the sale price
2. New improvements after the sale date
3. Additions to existing improvements after the sale date
4. Major remodeling/renovation after the sale
5. Land adjustments due to consolidations, zoning changes, etc.

Nothing in SB 346 says the assessors have to appraise your property for the sale price, just not above the sale price. If the assessors put your 100% market value at the sale price start looking at your neighbor's/competitior's assessments. Did they use the sale of your property to adjust the entire market area, or just your property? Equity is a valid argument when appealing your assessment in Georgia.
property tax appeals

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