Ad Valorem Tax Process

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 unless otherwise specified by law (O.C.G.A. 48-5-7). Fair market value means "the amount knowledgeable a buyer would pay for the property and a willing seller would accept for the property at an arm's length, bona fide sale. "(O.C.G.A. 48-5-311) 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 Hancock County Tax Assessor is responsible for the appraisal, assessment, and the equalization of all assessments within the county. 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 Hancock 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 Hancock County Commission 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 Hancock 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. fide sale.

The Hancock County Tax Commissioner, an elected 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. The Tax Commissioner does not set value or the millage rates.

Tax Bills

Generally, Hancock County property taxes are due by November 20. 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 that 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. (Please note: the filing deadline for homestead exemption is also April 1). 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 and 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.

Mobile/Manufactured Home Permits

Owners of mobile homes that are located in Hancock County on January 1 must pay the ad valorem taxes by April 1 of each year. After the due date there is a 10% filing penalty and 1% per month fee is added. If the taxes are not paid, there is a fifa filed on the docket in the clerk of superior court. The mobile home will be sold at auction.

Mobile home owners desiring to declare a different value from the existing value on the home have 45 days to file an appeal from the date the bills are mailed with the Board of Tax Assessors. If a taxpayer is dissatisfied with the value change or corrections, the taxpayer has the right to appeal to the Board of Equalization within 21 days of the date of the notice.

Homestead Exemptions

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. The application is filed with the Hancock County Tax Assessor's Office. First time homeowners need to bring a copy of their warranty deed to insure their application is filed correctly. With respect to all of the homestead exemptions, the Tax Assessor makes the final determination as to eligibility; however, if the application is denied the taxpayer must be notified and an appeal procedure is then available to the taxpayer. Drivers licenses must have a Hancock County address.

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. McDuffie 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 Tax Commissioner's office and Tax Assessor's Office can answer questions regarding the standard exemptions as well as any local exemptions that are in place.

The Local County Exemptions supersede the state exemption amount when the local exemption is greater than the state exemption.

• The Standard Homestead Exemption is available to all homeowners who otherwise qualify by ownership and residency requirements and it is an amount equal to $2,000 which is deducted from the 40% assessed value of the homestead property. The exemption applies to the maintenance and operation portion of the mill rate levy of the county and the county school system and the State mill rate levy. It does not apply to the portion of the mill rate levied to retire bonded indebtedness.
• The Standard Elderly School Tax Homestead Exemption is an increased homestead exemption for homeowners 62 and older where the net income does not exceed $10,000 for the preceding year. This exemption applies only to school tax but it does include taxes levied to retire bonded indebtedness. The amount of the exemption is up to $10,000 deducted from the 40% assessed value of the homestead property.
• The Standard Elderly General Homestead Exemption is available to homeowners who otherwise qualify and who are 65 and older where the net income of the applicant and spouse does not exceed $10,000 for the preceding year. Social Security income and certain retirement income are excluded from the calculation of the income threshold. This exemption, which is in an amount up to $4,000 deducted from the 40% assessed value of the homestead property, applies to county taxes, school taxes, and the state tax and it does apply to taxes levied to retire bonded indebtedness.
• The Disabled Veterans Homestead Exemption is available to certain disabled veterans in an amount up to $50,000 deducted from the 40% assessed value of the homestead property. This exemption applies to all ad valorem tax levies; however, it is restricted to certain types of very serious disabilities (that are service-connected disabilities) and proof of disability, either from the Veterans Administration or from a private physician in certain circumstances.
  • A similar exemption in the same amount is now available to the un-remarried surviving spouse of a member of the armed forces of the United States who was killed in any war or armed conflict engaged in by the United States. The surviving spouse must furnish appropriate documentation that spousal benefits are received as a result of the death of the armed forces member.

Age 65 and Older Exemption from State Ad Valorem Taxes

If you qualify for one of the other homestead exemption listed and are age 65 or older as of January 1, you also qualify for an exemption from the State portion of ad valorem taxes in an amount equal to 100% of the value of your home and up to 10 acres of land. The value of any additional land or improvements on the same parcel will be granted the standard maximum exemption of the homestead exemption for which you otherwise qualify.

The Un-remarried Surviving Spouse of a Firefighter or Peace Officer shall be granted total exemption from all ad valorem taxes levied, if such person’s spouse, who as a member of a qualified Fire Department or Peace Officer Agency, stead Exemption is available for the surviving spouse, which provides an exemption for the full value of the homestead with respect to all ad valorem taxes for the unmarried surviving spouse of a peace officer or firefighter who was killed or died as a result of injury in the performance of their duty. Documents from the agency must be provided.

Age 65 Years or Older Who are Blind or Disabled

This local homestead exemption increases the exemption amount from $10,000 to $20,000 for taxable years beginning on or after January 1, 2009, for qualified residents who are blind, disabled, or 65 years of age or older and whose gross income together with the gross income of such person's spouse who resides in such homestead does not exceed $50,000.00 and to provide for a homestead exemption from Hancock County ad valorem taxes for school purposes in the amount $10,000 of the assessed value of that homestead for the taxable year beginning January 1, 2009, and in the amount of $20,000 of the assessed value of that homestead for taxable years beginning in or after January 1, 2010. If that person's gross income, together with the income of the spouse of such person who resides within such homestead, does not exceed $35,000 for the immediately preceding taxable year, and to supersede the current local homestead exemption relative to residents who are 65 or older. Deadline for filing is April 1. You may file in the Tax Commissioner's Office.

The Disabled Veterans Homestead Exemption

The Disabled Veterans Homestead Exemption is available to certain disabled veterans in the amount up to $50,000. This exemption applies to all ad valorem tax levies, however, it is restricted to certain types of very serious disabilities and proof of disability, either from the Veterans Administration or from a private physician in certain circumstances, which may be necessary.

The Un-remarried Surviving Spouse Exemption

The Un-remarried Surviving Spouse Exemption shall be granted in an amount of up to $50,000 from all ad valorem taxes levied. If such person's spouse, who as a member of the armed forces of the United States, was killed or died as a result of any war or armed conflict. Documents from the Secretary of Defense must be provided stating that spousal benefits are received as a result of the death.

The Un-remarried Surviving Spouse of a Fire Fighter or Peace Officer

The Un-remarried Surviving Spouse of a Fire Fighter or Peace Officer shall be granted total exemption from all ad valorem taxes levied if such person's spouse, who as a member of a qualified Fire Department or Peace Officer Agency, was killed or died as a result of injury in the performance of their duty. Documents from the agency must be provided.

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 agricultural property, timber land property, environmentally sensitive property, or residential transitional property is to be valued and assessed for ad valorem tax purposes at 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 preferential assessment shall extend to the building or structure, the real property on which the building or structure is located, and not more than two acres surrounding the building or structure. 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 provides for the preferential assessment of environmental and contaminated property by freezing 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.
• Freeport Exemptions for Businesses: Manufacturers may qualify for Freeport Exemption on one or more of three categories. The categories are raw goods, goods in process and manufactured goods stored in warehouse to be shipped out of state. Specific detailed information is available and applications must be filed with the Board of Tax Assessors between January 1st and April 1st each year.

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 its 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.

For further information regarding property taxation in Georgia, please visit the State of Georgia Local Government Services Division website at http://dor.georgia.gov/.