Senate Bill 346 had an impact on what the tax assessors must consider when estimating the fair market value of property. It defines an arm’s length, bona fide sale as:
Transaction carried out by unrelated or unaffiliated parties, as by a willing buyer and a willing seller, each acting is his or her own self-interest, including, but not limited to a distress sale, short sale, bank sale, or sale at public auction.
Here you can clearly see that the Georgia legislature was not happy with the tax assessor’s reaction to falling values. The assessors are now forced to consider distress sales of all variety when estimating market value. If there are many foreclosures in your neighborhood this is good information to include in your appeal.
SB 346 goes on to say that the:
Tax Assessor shall apply the following criteria when determining fair market value of real property:
- Existing zoning of property
- Existing use of property, including any restriction or limitation on the use of property resulting from state or federal law or rules or regulations adopted pursuant to the authority of state or federal law
- Existing covenants or restrictions in deed dedicating the property to a particular use
- Bank sales, other financial institution owned sales, or distressed sales, or any combination thereof, of comparable real property
- Decreased value of the property based on limitations and restriction resulting from the property being in a conservation easement, and
- Any other existing factors provided by law or by rule and regulation of the commissioner deemed pertinent in arriving at fair market value.
So SB 346 has forced the assessors to use what’s “here and now” and not what “could be” when determining fair market value.
More next time….
