Georgia Ad Valorem Tax Explained

The state of Georgia imposes an ad valorem tax on real and personal property, which is a significant source of revenue for local governments and schools. The ad valorem tax, also known as the property tax, is calculated based on the value of the property and is used to fund various public services and infrastructure projects. In this article, we will delve into the details of the Georgia ad valorem tax, explaining how it works, who is liable, and what exemptions are available.

What is Ad Valorem Tax?

Ad valorem tax is a type of property tax that is levied on the value of real and personal property. The term “ad valorem” is Latin for “according to value,” which means that the tax is calculated as a percentage of the property’s value. In Georgia, the ad valorem tax is imposed on all types of property, including residential and commercial real estate, vehicles, and other personal property.

How is Ad Valorem Tax Calculated?

The ad valorem tax in Georgia is calculated by multiplying the assessed value of the property by the millage rate. The assessed value is determined by the county tax assessor’s office, which uses a variety of methods to determine the value of the property, including sales comparisons, income approaches, and cost approaches. The millage rate, on the other hand, is set by the local government and varies depending on the jurisdiction. For example, in Fulton County, the millage rate for residential property is 0.0215, while in Gwinnett County, it is 0.0145.

For instance, if a property in Fulton County has an assessed value of $200,000, the ad valorem tax would be calculated as follows: $200,000 x 0.0215 = $4,300.

Who is Liable for Ad Valorem Tax?

In Georgia, the owner of the property is liable for the ad valorem tax. This includes individuals, businesses, and other entities that own real and personal property. Property owners are required to pay their ad valorem taxes annually, and failure to do so can result in penalties and interest.

Exemptions and Discounts

Georgia offers several exemptions and discounts to eligible property owners, including:

• Homestead Exemption: A $2,000 exemption on the assessed value of a primary residence
• School Tax Exemption: A $10,000 exemption on the assessed value of a primary residence for homeowners 62 and older
• Disabled Veteran Exemption: A $50,000 exemption on the assessed value of a primary residence for disabled veterans
• Senior Citizen Exemption: A $4,000 exemption on the assessed value of a primary residence for homeowners 65 and older

These exemptions and discounts can significantly reduce the amount of ad valorem tax owed, and property owners should consult with their local tax assessor's office to determine their eligibility.

Payment and Due Dates

Ad valorem taxes in Georgia are typically due on December 1st of each year, and payments can be made online, by mail, or in person at the county tax commissioner’s office. Property owners who fail to pay their ad valorem taxes on time may be subject to penalties and interest, which can add up quickly.

In addition to the ad valorem tax, property owners in Georgia may also be required to pay other taxes and fees, such as the title ad valorem tax (TAVT) on vehicle purchases and the annual ad valorem tax on vehicles.

Appealing Property Assessments

Property owners in Georgia have the right to appeal their property assessments if they believe the value is incorrect. The appeal process typically involves filing a written notice with the county tax assessor’s office, which will then review the assessment and make any necessary adjustments. Property owners can also appeal to the county board of tax assessors and, if necessary, to the Georgia Tax Tribunal.

It's crucial for property owners to understand the ad valorem tax system in Georgia and to take advantage of available exemptions and discounts. By doing so, they can minimize their tax liability and ensure they are not overpaying on their property taxes.