It also pays to have basic information about a tax assessment freeze and property tax appeals particularly the temporary billing value in case of an appeal.
Tax Freeze Basics
With home values on the rise, you will want to reduce your property tax liability. You can consider filing for a tax assessment freeze on your real property’s assessed value. You are making a smart move in this case when you have already applied for your homestead exemption and your property taxes have been increasing in previous years.
Under the law of the State of Georgia, you can notify your Tax Commissioner about your desire to have your property’s current value frozen for tax purposes. The time to do so is prior to April 1 each year, just before the DeKalb County tax assessment notices are mailed.
The obvious advantage: Your real property’s assessed value for tax purposes will be maintained even when property values continue to increase. Your property taxes will essentially remain the same or similar in amount because of the freeze. Once set, the frozen assessed value cannot be decreased (i.e., re-frozen at a lower level).
Another type of property tax assessment freeze occurs when you file a property tax appeal. Provided you settle your appeal at the board of equalization or superior court the tax assessment is frozen for three years. This freeze is temporary unless you continue to appeal every three years and get the value frozen again.
But there are certain exceptions that you must discuss with the Tax Assessor. First, the DeKalb County tax assessment freeze will be revoked or removed when a building permit is issued for the property. The freeze will also be removed if you file a property tax return, sell the property, or appeal again during the three year freeze.
Temporary Value Basics
Let’s assume that you have filed a DeKalb County tax assessment appeal but it remains unresolved when the tax bill is mailed. Lest you think that you can skip on paying your tax property for the year, think again – you will still receive a tax bill but it will be based on a temporary value pending the result of your appeal.
The calculation for the temporary value can be one of these three options:
- Lesser amount of your property’s last final value or 85 percent of its current year value;
- 85 percent of its current year value or pay the 85 percent tax bill coupled with the difference between the last final tax bill and the 85 percent tax bill, in case your property is non-homestead and with a $2 million and above value;
- Billed at 100 percent of the current value, which you should specify and when there are no substantial property improvement
The tax authorities will apply the first option in case you don’t specify your preference. Upon resolution of your appeal, the difference will either be re-billed or refunded with applicable interest, if any.
Do you have more questions about the DeKalb County tax assessment freeze and appeal? Call us at Fair Assessments and we will do our best to answer your questions.
