Georgia Department of Revenue GAAO Seminar – Unicoi – October 2009

Georgia Department of Revenue HB 233 Rule 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 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

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) –Early227 –Stewart131 –Talbot126 –Decatur115 –Screven93 –Randolph82 –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) –Clinch91,178 –Stewart87,866 –Early76,688 –Echols67,086 –Screven63,926 –Lowndes59,856 –Brooks 52,473 –Jeff Davis48,297 –Decatur 39,984 –Quitman35,399

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) –Quitman13.24 % –Calhoun8.92 % –Brooks8.29 % –Early6.86 % –Stewart6.71 % –Glascock4.12 % –Randolph4.06 % –Decatur4.05 % –Jasper 4.04 % –Morgan4.03 % –Clinch3.24 % –Taylor3.04 %

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

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 ( ) –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