Like all tax-related authorities, the DeKalb County Tax Assessor has a set of deadlines (i.e., dates) and glossary (i.e., terms) that must be applied in the performance of their roles and responsibilities. As a taxpayer, you should be aware of these dates and terms since these have an impact, whether positive or negative, on your duties in relation to your real estate tax. Your basic knowledge in these matters can result in hundreds of dollars in savings on your tax bills every year.
Set Your Calendars to January 1
Keep in mind that January 1 is the most important date in property tax because everything hinges on it. Whatever the ownership, condition, and use of the real property as of January 1 of the current year is the basis of its appraisal for the taxable year. Any and all changes that happen to the subject real property during the calendar year (i.e., January 1 to December 31) will become effective on January 1 of the following calendar year.
Emphasis must be made that the DeKalb County Tax Assessor gathers real property-tax related data for the entire calendar year. Any and all changes observed in ownership, condition, and use will then be entered into a database for real property assessment purposes.
As a taxpayer and property owner, you should report these changes for a more accurate assessment and, thus, a more accurate property tax bill. You can also contact the Property Appraisal Department in case there are incorrect property characteristics reflected on your property record. Your vigilance in these matters will eventually accrue to your benefit.
Here are two examples that illustrate the importance of January 1.
- You own a piece of real property but you sell it to John Smith on February 1, 2016. You will be the owner on record as of January 1, 2016 but John Smith will be the owner on record as of January 1, 2017. You will be sent the notice of annual assessment for this reason and you have to coordinate with the new owner about the payment. Often property tax is prorated at settlement however, even though there can be no way of knowing what the upcoming assessment will be.
- Your house, which burned to the ground, was demolished sometime in October 2015. Your property will be assessed as land only effective January 1, 2016. This is also true for the reverse: If your real property was vacant on January 1, 2015 but you have a house built on it later in the year, it will be assessed for both the land and its building as of January 1, 2016.
Know Your Terms
The following are the most important terms you have to remember:
- Comparables are similar real property sales, rentals and operating expenses that will be used for comparison during the valuation process.
- Condition refers to the physical condition of the subject structure caused by the changes since its original form.
- Obsolescence, which can either be economic or functional in nature, refers to a loss in value. In economic obsolescence, the loss is the result of the negative external influences while functional obsolescence refers to the property’s depreciation due to the inadequacies, super-adequacies, and deficiencies of the subject structure.
Your tax advisor will be able to iron out the confusion, if any, about the taxable value of your property according to the January 1 deadline and the terms applied by the DeKalb County Tax Assessor.
