Q: My most recent city of Atlanta and Fulton County property tax statement has a notation “CPI FROZEN.” Can you explain what this means? I applied for the homestead exemption when I bought my home over 14 years ago, but never noticed this notation.
—Ann Ferretti, Atlanta
A: The Homestead Fair Assessment Act, which was approved in 2004, ties the taxable value of homes in Fulton County and the city of Atlanta to the consumer price index (CPI).
Here’s how it works:
All properties that have a homestead exemption also have protection against soaring tax bills because the assessed value of the house is tied to the CPI, a calculation of the prices people pay for goods and services.
When the law went into effect in 2005, a base assessment was set at the 2003 value for each homesteaded house.
That can increase 3 percent a year, or the growth rate of the CPI, whichever is less.
That means in a year when the economy is booming, the base might increase by 3 percent, for tax purposes, but in years of recession, the value might not increase.
“It basically mitigates the impact of assessment increases over the life of owning the property,” Doug Kirkpatrick, the deputy chief appraiser for the Fulton County Board of Assessors, told Q&A on the News. “It sounds really complicated, but it’s not.”
This is for the county maintenance and operations portion of the bill, not for school taxes or city taxes, which may be based on the full assessed value of the house.
Allison Floyd with Fast Copy News Service wrote this column. Do you have a question about the news? We’ll try to get the answer. Call 404-222-2002 or email q&a@ajc.com (include name, phone and city).
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