Hoping for lower property tax bills in 2009 as a result of declining property values?   Chances are very slim that hope will become reality unless property owners take some affirmative action.  Any taxpayer has the right to appeal a property tax assessment. 

Taxpayers may appeal issues concerning valuation of the property, uniformity of assessment with other properties, and taxability of the property. However, by law, you are not eligible to appeal the fair market value, uniformity, or taxability of your property unless you receive an assessment notice from the tax assessor.  Your tax bill is not an assessment notice.  Generally, the tax assessor does not reassess the value of your property every year and thus will not send out assessment notices each year.

In order to make sure the tax assessor sends you an assessment notice, file a real property tax return.  You are generally not required to file a real property tax return each year.  In most counties in Georgia, property tax returns can be filed between January 1st and April 1st. 

When you file a property tax return, you declare what value you think the property is worth.  Fair market value is defined as being the amount a willing buyer and willing seller would agree on in an arms-length transaction.  To file the return, you should file Form PT-50R with the tax commissioner or the tax assessor in the county where the property is located.  This form may be found at the county tax assessor's office or at:   http://www.etax.dor.ga.gov/ptd/adm/forms/pt50r/index.aspx.  The tax assessor will send you an assessment notice if the assessor does not agree with your valuation of the property.  You will have the burden of proof regarding the value of your property if you choose to appeal this assessment.  A recent appraisal would likely be the best evidence you could provide to help prove the actual fair market value of your property. 

A recent appraisal may also help you make the decision of whether or not it is worth the time, effort, and expense to challenge the property tax assessment.  The amount you will save in property taxes by having the valuation of your property lowered depends on the millage rate in your county.  Generally, for every $10,000 decrease in the fair market value of your property the resulting tax savings is likely to be around $100 - $200 (1-2% of the decrease in fair market value).

To appeal the tax assessor's valuation of the fair market value of your property you must file an appeal in writing to the tax assessor's office within 45 days of receiving an assessment notice.  In a few counties, the deadline is 30 days.  The board of assessors will then review the appeal and either make no change to the valuation or change the valuation and send you a second notice.  If the board of assessors makes no change to its valuation of the property, the appeal will go to the board of equalization to be considered.  You will receive a second notice if the board of assessors changes its valuation of the property.  You will have 21 days from the second notice to appeal the new valuation.  Any appeal of the board of assessors will be heard by the board of equalization, or at the option of the taxpayer, can be submitted to arbitration. 

A taxpayer that still does not agree with the decision of the board of equalization or the arbitrator may appeal the decision to the superior court of the county where the property is located.  An appeal to the superior court must be filed within 30 days from the date on which the decision of the county board of equalization is mailed or within 30 days from the date on which the arbitration decision is rendered.  A taxpayer, in addition to interest, will be awarded litigation expenses and reasonable attorney's fees if the superior court's final determination of value on appeal is 80 percent or less of the valuation set by the county board of equalization for commercial property, or 85 percent or less of the valuation set by the county board of tax assessors as to other property.

There is always a possibility that the taxpayer could lose the appeal or that the tax is increased. In the event the final determination of value is greater than the valuation set by the county board of equalization, the taxpayer will be liable for the increase taxes for the year in question plus interest; however, the interest will be capped at $150.00.

For more information on filing property tax returns and appealing property taxes, please contact your friendly neighborhood real estate attorney.