Georgia Department of Revenue

GAAO Seminar – Unicoi – October 2009

Georgia Department of Revenue

HB 233

• Rule 560-11-2.59 through .61– Adopted by Revenue Commissioner on

September 15, 2009

Georgia Department of Revenue

HB 233

• MAV (Moratorium Appraised Values)– HB233 refers to values as Moratorium

Assessed Values – Some counties exempted

Georgia Department of Revenue

HB 233

• Two situations for county-wide exemptions– Explicitly stated in HB233 that county is

exempt for term of moratorium– Counties conducting a “comprehensive

countywide revaluation” for 2009

Georgia Department of Revenue

HB 233

• Counties with “explicit” exemption– Houston– Richmond– Personal Property not included

Georgia Department of Revenue

HB 233

• Counties with “reval” exemption– Reval can be contracted or in-house– Reval should have been started in 2008

• Contracts signed• Minutes for Assessors meetings noting details of

revaluation

– Reval must be finished for 2009 digest

Georgia Department of Revenue

Rule 560-11-2-.59 Definition

Georgia Department of Revenue

HB 233

• MAV Freeze Exceptions– All value decreases are allowed– Value increases allowed

• New Improvements• Additions to existing improvements• Land units increased (acres, front feet, etc)• Land zoning changes• Other non-inflationary property changes

Georgia Department of Revenue

HB 233

• Non-allowable MAV increases– Modifications to property characteristic that

are generally inflationary• Grade, Phy Depr, Obs factors, Property Influences

– Valuation methodology changes that result in higher values

– Valuation schedule increases

Georgia Department of Revenue

HB 233

• Change of Assessment Notices – Only changes to MAV

• Property Records Cards– MAV

Georgia Department of Revenue

HB 233• Requirement of Rules 560-11-2-.61

Georgia Department of Revenue

HB 233

• DIGEST REPORTS• Consolidation sheets on 2009 billing values

– Signed and submitted by tax commissioner

• Consolidation sheets (or other approved report) with current year fair market value

– Signed and submitted by board of tax assessors

Georgia Department of Revenue

HB 233

Georgia Department of Revenue

HB 233 – Digest News!!!!

• Department of Audits will use MAV for ratio studies

• Digest compliance will be based on MAV studies– ¼ mill & $5.00/parcel penalty will be

calculated based on MAV ratio studies

Georgia Department of Revenue

HB 233 – Digest News!!!!!1

• Penalties based on MAV can be appealed if county has– FMV Consolidation Report– FMV Sales Ratio Studies

Georgia Department of Revenue

HB 233 – Digest News!!!

• In the case of an county appeal– DOR will review both reports (FMV Cons

Report & FMV Sales Ratio Study)– DOR may conduct further investigation with

onsite visit • Gather additional information• Check for compliance with ratio study standards

Georgia Department of Revenue

Questions or Comments??????

Georgia Department of Revenue

FLPA Update

• Approximately 120 digests for the 2009 tax year have been received to date– Why is digest submission slow this year?

– Economy: county budget issues– HB 233, new regulations – FLPA: new regulations

Georgia Department of Revenue

2009 Year-to-Date Stats on FLPA….• Number of Parcels entered in FLPA covenants = 2,390

• Counties with the most parcels in FLPA: (unaudited)– Early 227– Stewart 131– Talbot 126– Decatur 115– Screven 93– Randolph 82– Brooks 80– Harris 80– Monroe 72– Morgan 70

Georgia Department of Revenue

2009 Year-to-Date Stats on FLPA….• Number of Acres entered in FLPA covenants =

1,314,837• Counties with the most acreage in FLPA: (unaudited)

– Clinch 91,178– Stewart 87,866– Early 76,688– Echols 67,086– Screven 63,926– Lowndes 59,856– Brooks 52,473– Jeff Davis 48,297– Decatur 39,984– Quitman 35,399

Georgia Department of Revenue

2009 Year-to-Date Stats on FLPA….• Total tax digest Assessed Value reduction = $508,284,500

• Counties with greater than 3% Assessed Value Reduction: (unaudited)

– Quitman 13.24 %– Calhoun 8.92 %– Brooks 8.29 %– Early 6.86 %– Stewart 6.71 %– Glascock 4.12 %– Randolph 4.06 %– Decatur 4.05 %– Jasper 4.04 %– Morgan 4.03 %– Clinch 3.24 %– Taylor 3.04 %

Georgia Department of Revenue

2009 Year-to-Date Stats on FLPA….• Total State Assistance Grants to counties = $ 7,191,997

• Top 10 State Assistance Grants to Counties: (unaudited)

– Brooks $ 776,613– Early $ 593,075– Morgan $ 554,996 – Decatur $ 480,995– Monroe $ 324,051– Jasper $ 320,878– Quitman $ 297,767– Calhoun $ 270,210– Harris $ 264,346– Thomas $ 261,184

Georgia Department of Revenue

The Future

• Where are we heading?

Georgia Department of Revenue

Georgia Department of Revenue

2010 Legislation• New legislation dealing with the

consideration of foreclosures– Insufficient weight given in setting 2009 value

• Resurrect HR 1– Assessment caps

• Eliminate ad valorem tax on motor vehicles– Registration fee

Georgia Department of Revenue

2010 Legislation

• Amendments to FLPA (48-5-7.7)– lessen breach penalty

• Allow for a breach to not affect all property entered into original covenant

• Make it easier to enter smaller tracts

Georgia Department of Revenue

2010 Legislation

• Amend the exemption for heavy duty equipment– Current law provides for a 100,000 exemption– Amended to see $100,000 tax credit

Georgia Department of Revenue