SPECIALIZED AND PREFERENTIAL ASSESSMENT PROGRAMS
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 Thomas County, the application is filed with the Tax
Commissioners Office. The application must be filed between January 1 and April 1 of the year for which the exemption is first claimed by the taxpayer. The
homestead application is normally filed at the same time the initial tax return for the homestead property is filed.
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 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 assessors office in Thomas 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 ARE JANUARY 1st THROUGH April 1st.
Effective June 1, 2005 homestead exemptions may be filed for any time during the year. However, exemptions must be filed for by April 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
Standard Homestead Exemption The home of each resident of Georgia
that is actually occupied and used as the primary residence by the owner may
be granted a $2,000 exemption from county and school taxes except for school
taxes levied by municipalities and except to pay interest on and to retire
bonded indebtedness. The $2,000 is deducted from the 40% assessed value of
the homestead. The owner of a dwelling house of a farm that is granted a
homestead exemption may also claim a homestead exemption in participation
with the program of rural housing under contract with the local housing
authority. (O.C.G.A. § 48-5-44)
- Individuals 65 Years of Age and Older May Claim a $4,000 Exemption
Individuals 65 Years of Age and Older May Claim a $4,000 Exemption
Individuals 65 years of age or over may claim a $4,000 exemption from all
county ad valorem taxes if the income of that person and his spouse does not
exceed $10,000 for the prior year. Income from retirement sources, pensions,
and disability income is excluded up to the maximum amount allowed to be
paid to an individual and his spouse under the federal Social Security Act.
The social security maximum benefit for 2019 is $68,664. The owner must
notify the county tax commissioner if for any reason they no longer meet the
requirements for this exemption. (O.C.G.A. § 48-5-47)
- Individuals 62 Years of Age and Older May Claim
Individuals 62 Years of Age and Older May Claim Additional
Exemption for Educational Purposes Individuals 62 years of age or over that
are residents of each independent school district and of each county school
district may claim an additional exemption from all ad valorem taxes for
educational purposes and to retire school bond indebtedness if the income of
that person and his spouse does not exceed $10,000 for the prior year.
Income from retirement sources, pensions, and disability income is excluded
up to the maximum amount allowed to be paid to an individual and his spouse
under the federal Social Security Act. The social security maximum benefit
for 2020 is $72,264. The owner must notify the county tax commissioner if
for any reason they no longer meet the requirements for this exemption. This
exemption may not exceed $10,000 of the homestead's assessed value.(O.C.G.A.
- Homestead Exemption for Disabled Veterans
Disabled Veteran or Surviving Spouse Any qualifying disabled
veteran may be granted an exemption of $60,000 plus an additional sum from
paying property taxes for county, municipal, and school purposes. The
additional sum is determined according to an index rate set by United States
Secretary of Veterans Affairs. The amount for 2020 is $90,364.The value of
the property in excess of this exemption remains taxable. This exemption is
extended to the unremarried surviving spouse or minor children as long as
they continue to occupy the home as a residence. (O.C.G.A. § 48-5-48)
- Homestead Exemption for Unremarried Surviving Spouse
Surviving Spouse of U.S. Service Member The unremarried surviving
spouse of a member of the armed forces who was killed in or died as a result
of any war or armed conflict will be granted a homestead exemption from all
ad valorem taxes for county, municipal and school purposes in the amount of
$60,000 plus an additional sum. The additional sum is determined according
to an index rate set by United States Secretary of Veterans Affairs. The
amount for 2020 is $90,364. The surviving spouse will continue to be
eligible for the exemption as long as they do not remarry.(O.C.G.A. §
- Homestead Exemption for Unremarried Peace Officer or Firefighter
Surviving Spouse of Peace Officer or Firefighter The unremarried
surviving spouse of a peace officer or firefighter killed in the line of
duty will be granted a homestead exemption for the full value of the
homestead for as long as the applicant occupies the residence as a
homestead. (O.C.G.A. § 48-5-48.4).
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: Click Here
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SPECIALIZED AND PREFERENTIAL ASSESSMENT PROGRAMS
Three 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% instead of 40% of the 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 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.
The third type is the Forest Land Protection Act which reduces the value of timber tracts but is not limited to 2000 acres as in the CUVA mentioned above.
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 $25.00 recording fee must accompany all applications.
- 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)
This 10-year covenant agreement between the taxpayer and local board of assessors is limited to real property that is forest land at least 200 acres in aggregate which
lies within one or more counties, provided that such forest land is in parcels of at least 100 acres within any given county when owned by an individual or individuals or
by any entity registered to do business in Georgia. Property that qualifies for forest land conservation use assessment and that is already receiving preferential or current
use assessment can be changed one time to a forest land conservation use covenant without penalty.
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 which 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
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.
Georgia Forest Land Protection Act
- 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
The GEORGIA FOREST LAND PROTECTION ACT OF 2008 (O.C.G.A. 48-5-7.7) provides for an ad valorem tax exemption for property primarily used for the good faith subsistence
or commercial production of trees, timber, or other wood and wood fiber products and excludes the entire value of any residence located on the property.
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://dor.georgia.gov/
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The governing authority of any county or municipality may, subject to the approval of the electors of such political subdivision, except from ad valorem taxation, including all such
taxes levied for educational purposes and for State purposes, all or any of the following types of tangible property. Application for this exemption must be made each year by April 1 in
order to receive the maximum exemption on qualifying Inventory.
- 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.
- 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.
- 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: Click Here
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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 change must be sent to the property owner. Upon receipt of this notice, the property owner desiring to appeal the change in value must do so within 45 days of the date of the
notice. The appeal is filed with the Board of Tax Assessors, which reviews the appeal filed and informs the taxpayer of its decision. If the Board of Tax Assessors makes no changes,
the appeal is automatically forwarded to the County Board of Equalization. A hearing is scheduled, 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.
The assessment appeal may be made on the basis of 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. The appeal must be filed within the applicable time period
and cannot be filed after that time. Additionally, the appeal should not be based on any complaint regarding the amount of taxes levied on the property.
For more information on the
Appeals Process please go to:
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