While appealing commercial property taxes in Fulton County shares the fundamental right to challenge an assessment with residential appeals, there are important differences in the process, valuation methods, and evidence required. Here’s a breakdown of those distinctions:
Residential: Primarily relies on the Sales Comparison Approach (market approach), analyzing recent sales of similar homes.
Commercial: Uses multiple methods, including:
Income Capitalization Approach: Estimates value based on the property's potential income (rents, leases) minus expenses, applying capitalization rates.
Cost Approach: Estimates the cost to rebuild the property at current prices, less depreciation (physical, functional, economic), plus land value.
The Sales Comparison Approach is used when sufficient comparable commercial sales exist.
Residential: Generally homogenous and easier to compare.
Commercial: Highly diverse (office buildings, retail, warehouses, hotels, etc.), with unique income streams, lease terms, and expenses, requiring specialized appraisal knowledge.
Residential: Mainly comparable sales data and property condition.
Commercial: Requires detailed financial and market evidence, such as:
Income statements, rent rolls, balance sheets, expense reports
Lease agreements detailing rental terms and tenant quality
Independent commercial appraisal reports
Market studies on vacancy and lease trends
Evidence of functional and economic obsolescence
Construction cost and depreciation data for the cost approach
Environmental impact reports if applicable
Residential: Many homeowners represent themselves or use general consultants.
Commercial: Due to complexity, hiring experienced commercial property tax consultants or attorneys is highly recommended for effective appeals.
The initial appeal to the Fulton County Board of Assessors is the first step.
Next, appeals may proceed to the Board of Equalization (BOE), where some members may specialize in commercial property.
Further appeals can be made to arbitration or the Superior Court.
All appeals are governed by Georgia state law, with January 1 as the valuation date and typically a 45-day appeal window after the assessment notice.
Commercial appeals often require more time and financial resources due to the need for detailed data gathering, expert appraisals, and specialized representation.
| Feature | Residential Property Tax Appeal | Commercial Property Tax Appeal |
|---|---|---|
| Valuation Focus | Sales Comparison (Market) | Income, Cost, and Sales Comparison |
| Property Complexity | Generally Homogenous | Highly Diverse & Unique |
| Key Evidence | Comparable Sales, Condition | Financials, Leases, Market Data, Appraisals, Obsolescence |
| Expertise | Often Self-Represented | Highly Recommend Consultants/Attorneys |
| Data Complexity | Relatively Simple | Often Extensive & Specialized |
If you own commercial property in Fulton County and believe your taxes are too high, understanding these key differences will help you tailor your appeal strategy effectively. Professional guidance often significantly improves your chances of a successful appeal.
Georgia Code on Property Tax Appeals (see Title 48, Chapter 5)