In my most recent column, I suggested that January is a good time to get to work on your 2016 property tax return.
That’s because home prices in Georgia still have not completely recovered from the decline suffered during the Great Recession. Yet county governments have, in many cases, raised millage rates to compensate for the drop in property values. So if you don’t get your assessment lowered, you can end up paying more than your fair share of the property tax burden.
That’s just not fair!
The topic of property tax reduction often generates lots of good follow-up questions from readers. Here is a sampling:
Q: If Notices of Assessment can’t be mailed until after April 1st, why waste time filing a property tax return in January?
A: Georgia law allows the owner of any parcel in the state to file a property tax return with your county tax assessor between Jan. 1 and April 1.
The property tax return tells the tax assessor what you believe your property to be worth on Jan. 1 of this year, and triggers a review of the property value in advance of the mailing of the notice of assessment.
Filing the return may, in fact, cause the county to lower their valuation to a level that you might find acceptable, and prevent you from having to appear before the Board of Equalization later.
Q: What costs are associated with filing a property tax return, and where can I find the form?
Filing the form with your tax assessor is without cost. You can find the form Georgia PT-50R at the Georgia Department of Revenue or on my website at money99.com.
Q: In your last column, you stated that my estimate of value needed to be reasonable and justifiable. Instead, why can’t I start real low and work my way up to a reasonable value over time?
A: You can, but I believe you lose credibility when you start well below what you know the home is actually worth.
In my experience, you are better off finding comparable sales to justify your estimate, then stick to your guns as time goes by.
Q: Wouldn’t it just be easier to hire a professional appraiser to determine the actual market value of the home as it existed on Jan. 1?
A: Yes, but you should take into consideration the cost of a professional appraisal. For a full residential valuation appraisal, you may need to spend $400 to $500, and possibly more. In contrast, you can gather much of the same information yourself for free.
Q: Where is the best place for me to find information about comparable sales?
A: Many real estate professionals are affiliated with companies who are members of Metro Listing Service or First Multiple Listing Service, or both. Such agents have access to the MLS computer program which can evaluate and list comparable sales over the previous twelve month period. Starting with that list is extremely helpful.
Q: Will I have to pay the agent?
A: Probably not, but it would be polite to offer a small sum for the data.
Q: How will I know what is and is not comparable to my house?
Look for any house that sold during the calendar year of 2015 within a two mile radius of your house. Then look for homes that are similar to yours in style and age of construction. Then focus on homes that have the same bedroom and bath count. Then try to find homes with similar heated square footage.
In a perfect world, you would find at least three homes that sold last year in your immediate neighborhood that are very similar to yours. These sales will give you guidance in estimating the value of your home. By sharing your research with the tax assessor, you may be able to convince him to lower his estimate of value for 2016.
Q: If I already know that I am going to appeal my Notice of Assessment to the Board of Equalization, why should I waste my time sending in a property tax return?
A: Because the county assessor may agree with your estimate and lower your valuation to a number you can accept. If that happens, you will have avoided the trouble of having to schedule a meeting with the Board of Equalization and having to prepare and present your case to the Board.
Q: What happens if I do everything you suggest, and still can’t get the county to offer a reasonable valuation for 2016?
A: Your final opportunity is to appeal the decision of the Board of Equalization to the Superior Court of the county in which the property is located. Both you and the assessor will have an opportunity to present your case, and the jury will make the final decision.
John Adams is an author, broadcaster and investor. He is also a property owner. He answers real estate questions on radio station WGKA (920am) every Sunday at 11:00 AM. For more real estate information or to make a comment, visit money99.com, where you will find an expanded edition of this column.
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