Property Tax Reform Unanimously Passes Georgia Senate
Last Thursday, the Georgia Senate unanimously passed property tax reform which is designed to restore taxpayers' confidence in the fairness of the system of assessing property values. The bill, which was introduced by Sen. Majority Leader Chip Rogers, will require that an assessment notice be sent to property owners every year. The current system requires a notice only when the assessed value changes.
The version which passed the Senate was changed from the initial draft as previously summarized on this blog in the following respects:
- The taxpayer will have 45 days to appeal the proposed assessed value. As I previously commented, the initial proposal of one year was unworkable.
- The requirement that an increase in value must be unanimously approved by the board of equalization was removed.
- The annual notice will include a pro forma estimate of the current year's taxes based on the prior year's millage rate.
- There is a more detailed definition of "arm's length, bona fide" sale which specifically includes distress sales, short sales, REO sales and foreclosures.
- The county's tax digest may be approved even if taxpayers' appeals are pending.
I believe that this is a good bill which will lead to a more transparent and accurate system for assessing property values. Georgia property owners are currently paying taxes based on assessments which often do not reflect declining values. Under the proposed new system, assessed values should fall more in line with market prices. The downside is that local governments will face the challenge of either raising millage rates or finding other sources of revenue to make up for lower tax receipts.
The bill now moves to the State House for further consideration.
I was at the Clayton County Tax Commissioner office to file a Property Tax Return (PT-50R)as an agent on behalf of a client. I was prevented from filing the return because the Tax Commissioner, Terry Baskin, indicated that he has a verbal policy that requires the property to have their original signature on the aurhorization form and I would need power of attorney. I know this is not right! No other county has those verbal requirements. What recourse do I have to ensure that I'm able to file Property Tax Returns for clients?