Exemptions

HOMESTEAD EXEMPTIONS
HOMEOWNERS TAX RELIEF GRANT
SPECIALIZED AND PREFERENTIAL ASSESSMENT PROGRAMS
FREEPORT EXEMPTION
APPEALS

HOMESTEAD EXEMPTIONS

Several types of homestead exemptions have been enacted to reduce the burden of ad valorem taxation for Georgia homeowners. These exemptions apply to homestead property owned by and taxpayer and occupied as his or her legal residence (some exceptions to this rule apply and your Tax Assessors Office can explain them to you).

To receive the benefit of the homestead exemption, the taxpayer must file an initial application in the Tax Commissioners Office. The application must be filed for by March 1 to apply to the current tax year. You must still own and occupy the property as of January 1 to be eligible. Once granted, the homestead exemption is automatically renewed each year. The taxpayer does not have to apply again unless there is a change in ownership of the property or the taxpayer seeks to qualify for a different kind of exemption.

Under the authority of the State Constitution, several different types of homestead exemptions are provided. In addition, local governments are authorized to provide for increased exemption amounts and several have done so. The Tax Commissioners office in Putnam County can answer questions regarding the standard exemptions as well as any local exemptions that are in place.

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

HOMESTEAD EXEMPTION FILING DATES

Effective June 1, 2005 homestead exemptions may be filed for any time during the year. However, exemptions must be filed for by March 1 to apply to the current tax year. You must still own and occupy the property as of January 1 to be eligible.

  • Standard Homestead Exemption
    Each resident of Putnam County is entitled to an exemption on the property he owns and occupies as his permanent residence on January 1st of the taxable year. The exemption amount granted is $2,000 exemption from State taxes and $10,000 exemption from County and School taxes excluding bonded indebtedness. The $2,000 State exemption is deducted from the 40% assessed value and multiplied by the State portion of the mill rate to arrive at the amount of State taxes paid. The $10,000 County and School exemption is deducted from the 40% assessed value and multiplied by the County and School portions of the mill rate to arrive at the amount of County/School taxes paid. The value of the property in excess of the exempted amount is subject to all taxes. (O.C.G.A 48-5-44)
  • Senior Citizens:
    Defines a senior citizen as a person who is 70 years of age or older on or before Jan. 1st or the year in which the application for the exemption is made. Each resident of Putnam County who is a senior citizen and makes application is granted an exemption equal to the difference of the current year assessed value and the base year assessed in which the exemption under this Act is first granted. This exemption is in addition to any other homestead exemption and does not apply to improvements or additions made to the homestead after Jan. 1st of the base year. It provides the same exemption for senior citizens ad valorem taxes for educational purposes. This exemption only applies to the permanent residence and up to 5.00 acres of land. They must furnish a copy of their Drivers License or proof of age.
  • Each resident in Putnam County is allowed a homestead ad valorem tax exemption to the extent their property exceeds the “adjusted base year value” of the property. The “base Year” is the taxable year immediately proceeding the year this exemption is granted. This value is adjusted annually; to either 3% of that value or the percentage change in the consumer price index, whichever is least. The difference in this annual adjustment and the current year assessed value is the amount of the exemption. Among the exceptions to this exemption are additions or improvements made to the homestead after Jan. 1st of the base year. This exemption applies to both County and School ad valorem taxes. This homestead exemption applies to property located in Putnam County and is in addition to any other homestead ad valorem tax exemption. This exemption only applies to the permanent residence and up to 5.00 acres of land.
  • Floating Inflation-Proof Exemption
    Is an exemption which is available to homeowners 62 Years of age 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. If the appraised value of the home has increased by more than $10,000, the owner may benefit from this exemption. The exemption is called a floating exemption because the amount of the exemption increases as the value of the homestead property is increased. Since, however, 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 will initially at least increase the amount of taxes levied on the property. (O.C.G.A. 48-5-47.1)
  • Homestead Exemption for Disabled Veterans
    The Disabled Veterans Homestead Exemption is available to any qualifying disabled veteran or the un-remarried spouse or minor children in an amount up to $50,000 that is deducted from the 40% assessed value of the homestead property. This exemption applies to State, County, Municipal, and School tax purposes. The value of the property in excess of this exemption remains taxable. Applicants must be 100% totally disabled and furnish proof of disability either from the Veterans Administration or from a private physician. (O.C.G.A. 48-5-48)
  • Homestead Exemption for Un-remarried Surviving Spouse
    The surviving spouse of a member of the armed forces who was killed in any war or armed conflict will be granted a homestead exemption from all ad valorem taxes for state, county, municipal and school purposes in the amount of $50,000. The surviving spouse must furnish appropriate documentation that spousal benefits are received because of the death of the armed forces member. The surviving spouse will continue to be eligible for the exemption as long as they do not remarry. (O.C.G.A. 48-5-52.1)

In addition to the various homestead exemptions that are authorized, the law provides a Property Tax Deferral Program whereby qualified homestead property owners 62 and older with a gross income of $15,000 or less may defer but not exempt the payment of ad valorem taxes on 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.

With respect to all of the homestead exemptions, the board of tax assessors makes the final determination as to eligibility. If the homestead application is denied, the taxpayer must be notified and an appeal procedure then is available to the taxpayer.For more information: http://www.etax.dor.ga.gov/ptd/adm/taxguide/exempt/homestead.shtml
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HOMEOWNERS TAX RELIEF GRANT

The Homeowners Tax Relief Grant authorized by the Governor and the General Assembly in 1999, provides a tax relief credit in an amount up to $8,000 in assessed value for all homeowners who are receiving one of the normal homestead exemptions. This tax 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. See note below:

Tax Commissioner Note: This grant will be solely from the legislature each year and is dependent upon future state funds being available. Should state funds not be available to grant this credit, your taxes will increase as the county and the county school system is reimbursed each year from the state by the amount of the credits granted on your tax bill. If state funds should not be available for disbursement, your tax bill will increase with no fault of the Tax Commissioner, the county or county school system. For more information: http://www.etax.dor.ga.gov/ptd/cds/htrc/plan.shtml
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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 the fair market value for certain agricultural properties being used for bona fide agricultural purposes.

The second type of preferential programs is the Conservation Use program which provides that certain agricultural property, timber and 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. For more information on Conservation Use, we have included the following Information.

WHAT IS CONSERVATION USE?

Conservation Use was approved by an overwhelming majority of Georgia voters in an effort to encourage agricultural landowners to keep their land in production in exchange for favorable tax treatment. This favorable tax treatment is designed to protect these property owners from being pressured by the property tax burden to convert their land from agricultural use to residential or commercial use, hence the name ''conservation use'' assessment. In return for the favorable tax treatment the property owner must keep the land undeveloped in a qualifying use for a period of ten years on incur stiff penalties.

Applications for current use assessment must be filed with the county board of tax assessors on or before the last day for filing ad valorem tax returns in the county (April 1). A $10.00 recording fee must accompany all applications.

QUALIFICATIONS

  • Owner must be an individual or family farm corporation, estate, trust or non-profit organization.
  • Owner agrees to maintain the property in a qualifying use of ''good faith'' production of agricultural products or timber for 10 years.
  • Owner cannot have over 2,000 acres statewide in the Conservation Use Program.
  • The Tax Assessors Office may request additional information regarding the use of the property if the office feels it is necessary to determine if the property qualifies for the exemption. Information that may be requested is Schedule F (Profit or Loss from Farm Income), Form 4562 Depreciation, or Crop Production Records the owner maintains. (mandatory on tracts less than 10 acres)

CONSERVATION USE VALUES

  • Conservation values are set by the State of Georgia and cannot be appealed by the taxpayer, however the Board of Tax Assessors must still maintain the fair market value on the property that may still be appealed by the taxpayer.
  • The Conservation values established by the state are made up of a combination of the capitalized income that could be produced from the land and market value. The ratio is 65% income and 35% fair market value.
  • The maximum amount that conservation values may be increased is 3% per year or a maximum of 34.39% over the 10-year Covenant.
  • The amount of savings on your tax bill cannot be determined at this time. The valuation for conservation use is available on your property upon request. You then can compare the fair market value to the conservation use value.
  • Agricultural buildings may be included in the covenant. Although, the current values will not change on the buildings, these buildings would be subject only to the 3% per year maximum increase.

BREACH ON CONTRACT

  • If the owner breaks the Covenant, a penalty of twice the taxes saved by the taxpayer will be imposed and interest at the rate of 1% per month will be assessed if not immediately reported.
  • If the Covenant is broken as a result of death or eminent domain (condemnation) no penalty will be assessed.
  • If the Covenant is broken as a result of medically demonstrable illness or foreclosure, the penalty will be the amount of taxes saved for the current year only.
  • Leases or contracts for billboard signs, cellular towers, or any type of non-qualifying use will breach the Covenant and all penalties will apply. Hunting leases are allowed.
  • If the property is sold, and if the purchaser continues using the property as it was originally covenanted then no penalty would be assessed. Purchaser must sign covenant agreeing to no change in use. However, the taxpayer should be aware that if the use changes during the 10-year period all penalties would apply.

OTHER FACTS

  • If the owner desires to omit a portion of a tract from the Covenant, they must present to the Assessors' satisfaction a clearly defined description of the portion under the Covenant and a clearly defined description of the portion not under the Covenant.
  • The property owner may give up to 5.0 acres to a relative within the 4th degree of civil reckoning provided that relative builds a house on the property received within one year and resides in the house for the remainder of the 10-year period.
  • Property is allowed to lie fallow or idle for up to 2 years within any 5-year period.
  • Property owners over age 65 who renew their Covenant may elect after 3 years into the second 10-year Covenant to terminate the Covenant by filing in writing a declaration with the Tax Assessors' office.

Rehabilitated and Landmark Historic Property

  • Historic property that qualifies for listing on the Georgia or National Register of Historic Places may qualify for preferential assessment. The preferential assessment shall extend to the building or structure is located, and not more than two acres surrounding the building or structure. The real property receiving preferential assessment may not be changed for a period of nine years. Property under this special program must be certified by the Department of Natural Resources as rehabilitated historic property or landmark historic property.

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 and 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. It also allows an eligible owner to recoup the eligible costs associated with the cleanup of this type property against their tax liability.

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. Substantial penalties result if the covenant is broken. Additional information is available at: http://www.etax.dor.ga.gov/ptd/cas/cuse/index.shtml
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FREEPORT EXEMPTION

Putnam County voters have elected to exempt the following types of commercial and industrial inventory:

     • Class 1 - Raw materials and goods in process of manufacture - 100% exemption
     • Class 2 - Finished goods produced in Georgia within the last 12 months - 100% exemption
     • Class 3 - Finished goods stored in Georgia within the last 12 months and destined for shipment out-of-state - 100% exemption

The City of Eatonton has also elected to exempt 100% of all qualified inventory.

Freeport applications must be filed with the Board of Tax Assessors between January 1 - April 1 to receive the full exemption. You will receive a partial exemption is filed after the April 1 deadline. The amount of the exemption you will receive is as follows: April 2 - April 30 (66.67% of the full exemption), May 1 - May 31 (58.33%), June 1 (50%). Failure to file by June 1 shall constitute a waiver of the entire exemption for the year (0.0%).

  1. Inventory of goods in the process of manufacture or production, which shall include all partly finished goods and raw materials, held for direct use or consumption in the ordinary course of the taxpayer's manufacturing or production business in the State of Georgia.
  2. Inventory of finished goods manufactured or produced within the State of Georgia in the ordinary course of the taxpayer's manufacturing or production business when held by the original manufacturer or producer of such finished goods. The exemption provided for herein shall be for a period not exceeding twelve (12) months from the date such property is produced or manufactured.
  3. Inventory of finished goods which, on the first day of January, are stored in a warehouse, dock or wharf, whether public or private, and which are destined for shipment to a final destination outside the State of Georgia and inventory of finished goods which are shipped into the State of Georgia from outside the State and stored for transshipment to a final destination outside this State. The exemption provided for herein shall be for a period not exceeding twelve (12) months from the date such property is stored in this State.

For further details on Freeport exemption, read O.C.G.A. 48-5-48.2 in its entirety or contact the Tax Assessors office. Also use the following link: http://www.etax.dor.ga.gov/ptd/adm/taxguide/exempt/freeport.shtml
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