Even with computer-generated record keeping, the Fulton County property tax officials can still make mistakes in keeping property-related records. Keep in mind that even apparently small errors can have a significant impact on the fairness of property valuation.
Fortunately, property owners can adopt several steps to counteract these errors. Remember that when these steps become too much to handle because of the complexity of property tax rules and regulations, you can hire an experienced tax consultant.
Start During the Initial Purchase
The importance of keeping organized, accurate and written records related to your real property cannot be overemphasized, especially as these records will be used during the appeal process. You must start with keeping records of the property upon its initial purchase.
Under the law of the State of Georgia, property owners must report real property sales on an official form. The form should be filed online with the clerk of the county superior court, which will be transmitted to the concerned county tax assessor. The tax assessor is required by law to consider sales in the determination of the fair market value for comparable property.
Look Into Proper Allocation
You should also look into the proper allocation between real and personal property as well as between tangible and intangible property. This is because the law in the State of Georgia requires the exclusion of the value of intangible assets, such as trademarks and trade names, patents, and merchandising agreements, from the assessment of tangible assets.
When the reported sales price of the subject real property includes the value of these intangibles, the likely result will be inflated tax valuations. This also applies to the exclusion of the personal property, such as furniture and fixtures, from the value of the real property itself. For example, in a portfolio purchase of a convenience store, the proper allocation between the real and personal property will likely result in a fair valuation.
To put it another way, improper tax valuations can result from inaccurate sales price allocation in a portfolio purchase. You should ensure that the Fulton County property tax authorities have made the proper allocation.
Keep Accurate Internal Records
If you have taxable personal and real property, you should maintain accurate internal records. You must also update these records on a regular basis or when changes like renovation and demolition occurs.
The regular updates are a must since small inaccuracies can have a big impact over time throughout your ownership of the property. For example, you may still be carrying on your books pieces of property that have already been disposed, demolished, and sold as well as obsolete or idle. Your property valuation will be higher than necessary because of your failure to update your internal records and report the changes to the county assessor.
While the Fulton County property tax authorities must share the blame for unfairly high tax assessments, you should also take part of the responsibility for their valuation errors. Act on these tips now with Fair Assessments, LLC and you will be surprised at your potential tax savings.
