General Information
Ad valorem tax, more commonly known as property tax, is a large source of revenue for local governments in Georgia. The basis for ad valorem taxation is the fair market value of the property, which is established as of January 1 of each year. The tax is levied on the assessed value of the property which, by law, is established at 40% of the fair market value. The amount of tax is determined by the tax rate (mill rate) levied by various entities (one mill is equal to $1.00 for each $1,000 of assessed value, or .001).
Several distinct entities are involved in the ad valorem tax process:
The State Revenue Commissioner is responsible for examining the tax digests of counties in Georgia in order to determine that property is assessed uniformly and equally between and within the counties (O.C.G.A. 48-5-340). In addition, the State levies ad valorem tax each year in an amount which cannot exceed one-fourth of one mill(.00025).
The County Board of Tax Assessors, appointed for fixed terms by the county governing authority, is responsible for the appraisal, assessment, and the equalization of all assessments within the county. The Board of Tax Assessors receives tax returns filed by taxpayers and processes applications for homestead exemption. They notify taxpayers when changes are made to the value of property, receive and review all appeals filed, and insure that the appeal process proceeds properly. In addition, they approve all exemptions claimed by the taxpayer.
The County Board of Equalization, appointed by the Grand Jury, is the body charged by law with hearing and adjudicating administrative appeals to property values and assessments made by the Board of Tax Assessors
The Board of County Commissioners, an elected body, establishes the annual budget for county government operations and levies the mill rate necessary to fund the portion of the budget to be paid for by ad valorem tax.
The County Board of Education, an elected body, establishes the annual budget for school purposes and adopts the mill rate necessary to fund the portion of the budget to be paid for by ad valorem tax.
The County Tax Commissioner, an office established by the Constitution, is the official responsible for performing all functions related to billing, collecting, accounting for and disbursing ad valorem taxes collected in this county. The Tax Commissioner also serves as an agent of the State Revenue Commissioner for the registration of motor vehicles.
Tax Bills
Generally, Baldwin County property taxes are due by November 15. If taxes are not paid on the property, it may be levied upon and ultimately sold.
Tax Returns
Taxpayers are required to file at least an initial tax return for taxable property (both real and personal property) owned on January 1 of the tax year. The tax return is a listing of the property owned by the taxpayer and the taxpayer’s declaration of the value of their property.
Property tax returns must be filed with the Board of Tax Assessors between January 1 and April 1 of each year. After the taxpayer has filed the initial tax return for real property, the law provides for an automatic renewal of that return each succeeding year at the value determined for the preceding year. The taxpayer is required to file a new return only as additional property is acquired, improvements are made to existing property, or other changes occur. Personal property tax returns are required to be filed each year.
A new return, filed during the return period, may also be made by the taxpayer to declare a different value from the existing value where the taxpayer is dissatisfied with the current value placed on the property by the Board of Tax Assessors. This initiates the taxpayer’s appeal process if the declared value is not accepted by the Board of Tax Assessors.
Assessment Appeals
When the Board of Tax Assessors changes the value of property from the value in place for the preceding year or from the value that was returned by the taxpayer for the current year, a notice of that change must be sent to the property owner. The property owner desiring to appeal the change in value must do so within 45 days of the date of mailing of this assessment notice. The assessment appeal may be made on the basis of the taxability of the property, the value placed upon the property, or the uniformity of that value when compared to other similar properties in the county. Additionally, the appeal should not be based on any complaint about the amount of taxes levied on the property.
The appeal is filed with the Board of Tax Assessors who again reviews their valuation and the appeal filed and informs the taxpayer of its decision. If the taxpayer remains dissatisfied, the appeal is forwarded to the County Board of Equalization. A hearing is scheduled and conducted and the Board of Equalization renders it decision. If the taxpayer is still dissatisfied with the decision, an appeal to Superior Court may be made. In lieu of an administrative appeal with the Board of Equalization, an arbitration method of appeal is also available to the taxpayer. The Board of Tax Assessors can provide details regarding this procedure.
Homestead Exemption
Homestead exemptions have been enacted to reduce the burden of ad valorem taxation for Georgia homeowners. The exemptions apply to homestead property owned by the taxpayer and occupied as his or her legal residence. Homestead exemptions are deducted from the assessed value of the qualifying property (40% of the fair market value).
To receive the benefit of the homestead exemption, the taxpayer must file an initial application. In Baldwin County the application is filed with the Board of Tax Assessors. With respect to all of the homestead exemptions, the Board of Tax Assessors makes the final determination as to eligibility; however, if the application is denied the taxpayer must be notified and an appeal procedure then is available for the taxpayer.
Georgia law allows for the year-round filing of homestead applications but the application must be received by April 1 of the year for which the exemption is first claimed by the taxpayer. Homestead applications received after that date will be applied to the next tax year.
Once granted, the homestead exemption is automatically renewed each year and the taxpayer does not have to apply again unless there is a change of residence, ownership, or the taxpayer seeks to qualify for a different kind of exemption.
Under authority of the State Constitution several different types of homestead exemptions are provided. These are called State Exemptions. In addition, local governments are authorized to provide for increased exemption amounts. These are called Local County Exemptions. Baldwin County has such local county exemptions. The Local County Exemptions supersede the State Exemptions when the Local Exemption amount is greater than the State Exemption amount. The Board of Assessors can answer any questions regarding the standard exemptions as well as any local exemptions that are in place.
Available Baldwin County Homesteads (these are State & Local exemptions combined):
1. S1--STANDARD HOMESTEAD EXEMPTION
· No age or income requirements
· Amounts deducted from Assessed Value (40%FMV): State-$2,000; County-$10,000; School-$10,000
2. S5--VETERAN
· Must be 100% disabled-service connected
· Letter from Veteran Affairs verifying disability
· Un-remarried surviving spouse or minor children may also qualify
· Amounts deducted from Assessed Value (40%FMV): State-$50,000; County-$50,000; School-$50,000
3. SS--SURVIVING SPOUSE OF US SERVICE MEMBER
KILLED IN ACTION
· Un-remarried
· Proof of Eligibility required
· Amounts deducted from Assessed Value (40%FMV): State-$50,000; County-$50,000; School-$50,000
4. SG--SURVIVINGSPOUSE OF A FIREFIGHTER OR PEACE OFFICER KILLED IN THE LINE OF DUTY
· Un-remarried
· Proof of eligibility required
· Amounts deducted from Assessed Value (40%FMV): State-100% Exemption; County-100% Exemption; School-100% Exemption
5. AGE 65 EXEMPTIONS
a) SC or (SCF**)
· Age 65 and over prior to January 1 of year applied
· No income requirementcontiguous acres of land and $2,000 on balance of value; County-$10,000; School-$10,000
· Amounts deducted from Assessed Value (40%FMV):State 100% on residence and up to 10 contiguous acres of land and $2,000 on balance of value; County-$10,000; School-$10,000
b) S4 or (S4F**)--
· Age 65 and over prior to January 1 of year applied
· Net income of Applicant & Spouse is less than $10,000
· Amounts deducted from Assessed Value (40%FMV): State- 100% on residence and up to 10 contiguous acres of land & 4,000 on balance of value; County-$10,000; School-$10,000
c) S4L or (S4LF**)--School Exemption
· Age 65 and over prior to January 1 of year applied
· Gross income from all sources in household cannot exceed $16,000
· No source of income is exempted
· Amounts deducted from Assessed Value (40%FMV): State-100% on residence and up to 10 contiguous acres of land and $4,000 on balance of value; County-$10,000; School-100% exemption on residence and up to 5 contiguous acres of land
d) SD or (SDF** ) --Veteran
· Age 65 and over prior to January 1 of year applied
· Must be 100% disabled-service connected
· Letter from Veteran Affairs verifying disability
· Un-remarried surviving spouse or minor children may also qualify
· Amounts deducted from Assessed Value (40%FMV): State-100% on residence and up to 10 contiguous acres of land and $50,000 on balance of value; County-$50,000; School-$50,000
e) SDL or (SDLF**)
· Age 65 and over prior to January 1 of year applied
· Must meet qualifications of SD and S4L above
· Amounts deducted from Assessed Value (40%FMV): State-100% on residence and up to 10 contiguous acres of land and $50,000 on balance of value; County-$50,000; School-100% exemption on residence and up to 5 contiguous acres of land
f) SE or (SEF**)--Surviving Spouse of US Service Member Killed In Action
· Age 65 and over prior to January 1 of year applied
· Un-remarried
· Proof of eligibility required
· Amounts deducted from Assessed Value (40% FMV): State-100% on residence and up to 10 contiguous acres of land and $50,000 on balance of value; County-$50,000; School-$50,000
g) SEL or (SELF**)
· Age 65 and over prior to January 1 of year applied
· Must meet qualifications of SE and S4L above
· Amount deducted from Assessed Value (40%FMV): State-100% on residence and up to 10 contiguous acres & $50,000 on balance of value; County-$50,000; School-100% exemption on residence and up to 5 contiguous acres of land.
h) **(SCF,S4F,S4LF,SDF,SDLF,SEF,SELF) Denotes Local Floating Homestead (Freeze) Exemption Codes
Qualifications:
· Age 65 and over prior to January 1 of year applied
· No income requirements
· This exemption freezes value only – it does not freeze taxes. The county governing authority and/or the Board of Education may adjust millage rates as needed
· This homestead is in addition to any other homestead applicable
· Exemption applies to ad valorem taxes for county and school purposes. It does not apply to state and municipal (city) taxes
· Acreage in excess of five (5) acres shall remain subject to taxation at the current market value
· Does not apply to taxes assessed on additions to the residence or acreage added
The Floating or Varying Homestead Exemption (State Exemption only) (S6, S8, S9)
This is an exemption which is available to homeowners 62 or older with gross household incomes of $30,000 or less. The exemption applies to state and county ad valorem taxes but it does not apply to school tax. The exemption is called a floating exemption because the amount of the exemption increases as the value of the homestead property is increased. However, since the exemption replaces any other state and county exemption already in place for the property, taxpayers should be very careful in making application since in many instances the granting of this exemption may initially at least increase the amount of taxes levied on the property.
Homeowners Tax Relief Grant
Authorized by the Governor and the General Assembly provides a tax relief credit in an amount up to $8,000 in assessed value for all homeowners who are receiving one of the state homestead exemptions. This relief is shown on the property tax bill for State, County, School, and city purposes as a credit against taxes that otherwise would have been due.
Property Tax Deferral Program
In addition to the various homestead exemptions that are authorized, the law also provides a Property Tax Deferral Program whereby qualified homestead property owners 62 and older with gross household income of $15,000 or less may defer but not exempt the payment of ad valorem taxes on a part or all of the homestead property. Generally, the tax would be deferred until the property ownership changes or until such time that the deferred taxes plus interest reach a level equal to 85% of the fair market value of the property.
Specialized and Preferential Assessment Programs
Two general types of specialized or preferential assessment programs are available for certain owners of certain types of property. One of these programs authorizes assessment at 30% rather than 40% of fair market value for certain agricultural properties being used for bona fide agricultural purposes.
The second type of preferential program is the Conservation Use program which provides that certain property is to be valued and assessed for ad valorem tax purposes as its current use value rather than its fair market value.
Each of these specialized or preferential programs requires the property owner to covenant with the Board of Tax Assessors to maintain the property in its qualified use for at least 10 years in order to qualify for the preference. The Board of Tax Assessors can explain the ownership and use restrictions regarding property qualifying for either of these programs.
Rehabilitated and Landmark Historic Property
Historic property that qualifies for listing on the Georgia National Register of Historic Places may qualify for preferential assessment. The Board of Tax Assessors can explain the ownership and use restrictions regarding property qualifying for this assessment.
Brownfield Property
Property which qualifies for participation in the State’s Hazardous Site Reuse and Redevelopment Program and which has been designated as such by the Environmental Protection Division of the Department of Natural Resources may qualify for preferential assessment. This special program freezes the value for ten years as an incentive for developers to clean up the property and return it to the tax rolls. The Board of Tax Assessors can explain the ownership and use restrictions regarding property qualifying for this assessment.
Timber
Standing timber is not taxed until sold or harvested, at which time it is taxed based upon 100 percent of its fair market value. This value is then multiplied by the appropriate mill rate to determine the tax amount due.
Mobile/Manufactured Home Permits
Owners of mobile homes that are located in Baldwin County on January 1 must pay the ad valorem taxes on the home by May 1 of each year and obtain their location permit at that time. Failure to pay the taxes and obtain the permit will result in a 10% tax penalty, issuance of a citation for appearance in Baldwin State Court or possible sale of the mobile/manufactured home.
Mobile home owners desiring to declare a different value from the existing value on their mobile home must file an appeal in writing with the Board of Tax Assessors within 45 days of the mailing of their tax bill.