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Bill of Sale for the State of Georgia

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Bill of Sale for the State of Georgia Powered By Docstoc
					 Georgia Department of Revenue



PROPERTY TAX LEGISLATIVE
       UPDATE

               Vicki Lambert
 Phil Hogsed, Cobb County Chief Appraiser
               July 20, 2009
        Georgia Department of Revenue


• Local Government Services Field Staff:
  –   Wayne Blackwelder
  –   Kenny Colson
  –   Grant Hilton
  –   Mark Loyd
  –   Gregg Reese
  –   Don Sheppard
  –   Tracy Thomas
  –   Zachary Young
Georgia Department of Revenue
       Georgia Department of Revenue

HOUSE BILL 143
• Amends Title 36 and 45 regarding
  „Homeowners Tax Relief Grants‟
• For FY 2009 state budget (2008 Tax Digest) -
  funds shall be appropriated and shall not be
  reduced or withdrawn.
• For FY 2010 and future state budgets – no
  appropriation unless estimated revenues exceed
  appropriation.
       Georgia Department of Revenue
House Bill 143

• When funds are not available, counties are
  not allowed to include a notice on the bill
  regarding the unavailability of the credit
• Effective Date: Signed By Governor on
  02/17/2009
• Act #1
      Georgia Department of Revenue

HOUSE BILL 233
• Amends Title 48 to provide for a
  moratorium on ad valorem tax
  assessment valuation increases.
  – New O.C.G.A. § 48-5B-1
• The General Assembly finds that property
  owners are experiencing a crisis in the
  reduction of value of unprecedented
  magnitude.
      Georgia Department of Revenue

House Bill 233
• Beginning January 1, 2009.
• Ending Sunday before second Monday in
  January 2011.
• Moratorium on all increases in the
  assessed value of all classes of all
  subjects of property …
      Georgia Department of Revenue
House Bill 233
  – Applies to County, County School, Municipal,
    Independent School, Special Districts, and
    State.
  – Applies to:
    • Real – all classes (RACI)
    • Personal
       Georgia Department of Revenue

House Bill 233
• Exceptions:
  – Corrections of any manifest, factual error or omission
    in the valuation of property.
  – Limitations take effect January 1 2010 for counties
    that performed or had performed a Comprehensive
    County-Wide Revaluation of all properties in the
    county in 2008.
  – Limitations take effect January 1, 2010 for any county
    which in 2009 was under contract prior to February
    28, 2009 to have performed on its behalf a
    Comprehensive County-Wide Revaluation of all
    properties in the county.
       Georgia Department of Revenue
House Bill 233
• Comprehensive County-Wide Revaluation Plan
     • A plan by county tax officials for revaluing all real and
       personal property within the county that is being or has been
       implemented:
         – Pursuant to a contract executed and effective prior to February
           20, 2009
         – Without the assistance of third-party appraisers or appraisal
           firms under contract for such purpose, if such plan was formally
           adopted by county tax officials prior to January 1, 2009.
         – But shall not include any plan that requires or required the
           inclusion of non-consecutive tax years in order to be completed
      Georgia Department of Revenue

House Bill 233
Nothing in this Code section shall be
 construed to prohibit the assessed value
 of property from decreasing.
  – Values cannot be increased at all during
    moratorium; once a value is decreased, a new
    ceiling is established
       Georgia Department of Revenue

House Bill 233
• Properties which are sold or transferred:
  – Assessed value shall not be increased.
• Additions and Improvements:
  – Shall be valued at FMV and addition/improvement
    value shall be added to owners base year value.
• Rezoned, Subdivided or Combined:
  – When use is also changed to conform with rezoning,
    subdivision or combination, the property shall be
    valued at its fair market value.
      Georgia Department of Revenue

House Bill 233

• Nothing in this Code section shall be
  construed to alter or affect in any manner
  the authority granted to the General
  Assembly under the Constitution to enact
  Homestead.
       Georgia Department of Revenue

House Bill 233
• The provisions of the Chapter shall not apply to
  the real property in any county for which a local
  constitutional amendment has been continued in
  force and effect as part of the Constitution which
  imposes millage rate limitations regarding ad
  valorem property taxes for county or county
  school district, unless the constitutional
  amendment is repealed.
  – Houston County
  – Richmond County
       Georgia Department of Revenue

House Bill 233
• The Revenue Commissioner shall
  continue to examine and review county tax
  digests:
  – In the event a deficiency is attributable directly
    to the limitations of this Code section, no
    penalties shall be levied.
     • Additional State Tax is not a penalty
     • 48-5-346 defines penalties : $5/parcel, etc
      Georgia Department of Revenue
House Bill 233
• Consolidation sheets (PT-10A) with billing
  values (moratorium values)
• Consolidation sheets (PT-10A) showing
  value if computed without regard to
  limitations imposed by O.C.G.A. § 48-5B-1
      Georgia Department of Revenue
House Bill 233
• Bottom Line
  – Real property -- add value of new
    construction
  – Personal property – add value of new assets
      Georgia Department of Revenue

HOUSE BILL 304
• Amends 48-5-48:
  – The unremarried surviving spouse or minor
    children of any disabled veteran shall also be
    entitled to an exemption … on a homestead,
    or any subsequent homestead within the
    same county, where such spouse or minor
    children continue to occupy the home as a
    homestead…
  – Effective May 4, 2009
      Georgia Department of Revenue

HOUSE BILL 304
• Amends 48-5-264.1:
  – Chief appraiser, county appraisal staff,
    authorized agents of county BTA and
    members of BTA may go upon property
    outside buildings.
  – Shall carry identification.
  – Shall not enter upon property unless
    reasonable notice has been provided to the
    owner/occupant.
      Georgia Department of Revenue

House Bill 304
  Reasonable Notice??
  – Insert in Water Bill
  – Publish on website
  – Publish in newspaper
  – Use Government Cable Channel
      Georgia Department of Revenue
HOUSE BILL 304
• Reasonable Notice
  – Provide notice to taxpayer when:
    • filing return
    • filing appeal
  – Prepare a notice for building permit
    department to give taxpayer at time building
    permit is issued
  – Follow DOT guidelines
       Georgia Department of Revenue

HOUSE BILL 304
• Tax Commissioner shall include statement
  on tax bill and on official website regarding
  taxpayer‟s right to file return.
       Georgia Department of Revenue

HOUSE BILL 318
• Amends 48-5-444:
  – If a passenger car or truck is primarily used in
    connection with some established farm
    operation, by a family-owned-farm-products-
    producer, located in a county other than the
    county where the owner claims homestead,
    such car or truck shall be returned in the
    county where the farm is located.
       Georgia Department of Revenue

HOUSE BILL 318
• Amends 48-5-506.1:
  – Heavy Duty Equipment Exemption
  – Beginning January 1, 2010 and ending December 31,
    2010.
  – Does not apply to Publicly Traded Companies; Heavy
    Equipment Dealers and Persons/Entities in year of
    Purchase.
  – Exemption of assessed value up to $100,000 per
    entity state wide
  – New Exemption code: SY
      Georgia Department of Revenue

HOUSE BILL 482

• Amends/Adds 48-5-41.2:
  – All tangible personal property constituting the
    inventory of a business shall be exempt from
    state ad valorem taxation.
  – Constitutional Amendment to be placed on
    general statewide ballot.
  – New Exemption Code: SN
         Georgia Department of Revenue
SENATE BILL 55
• Amends 48-5-2: The tax assessor shall consider the
  following criteria in determining the fair market value of
  property. (in addition to: use, zoning, deed restrictions,
  other factors)
   – Foreclosure sales, bank sales, other financial
      institution owned sales or distressed sales, or any
      combination thereof of comparable real property.
        • Property characteristics and condition
          considerations still apply in selection of
          comparables
   – Decreased value of the property based on limitations
      and restrictions resulting from the property being in a
      conservation easement.
   – Effective January 1, 2009.
       Georgia Department of Revenue
SENATE BILL 55
• A foreclosure is a complex legal process,
  not a sale. Black’s Law Dictionary (2001)
  defines foreclosure as:
  – A legal proceeding to terminate a mortgagor’s
    interest in property, instituted by the lender
    (the mortgagee) either to gain title or to force
    a sale in order to satisfy the unpaid debt
    secured by the property.
       Georgia Department of Revenue
SENATE BILL 55
• Real Estate Owned (REO)
  – A sale of property formerly foreclosed on by a
    financial institution (the seller is the financial
    institution).
  – (REOs can include bank-owned property,
    which is not included in this discussion).
       Georgia Department of Revenue
SENATE BILL 55
• Deed in Lieu of Foreclosure
   “Soft sale,"
   Mortgagee and the mortgagor have agreed that "in
    lieu" of being foreclosed upon the seller executes
    warranty deed to lender.
   Total purchase price is the amount of the loan in
    default, plus associated fees.
   Lender does not incur the costs and time incurred in
    the foreclosure process.
   Sale is not exposed to open market
      Georgia Department of Revenue
SENATE BILL 55
• Short Sale
  – A pre-foreclosure sale
  – Bank or mortgage lender discounts loan
    balance due to economic or financial
    hardship on the part of the mortgagor
  – Sale negotiated in which a lender takes less
    than the total amount due.
      Georgia Department of Revenue
SENATE BILL 55
• Use of Foreclosure-related sales in a ratio
  study will require:
  – careful evaluation of subject sale to the
    validation process.
  – Adjust foreclosure-related sale prices to more
    accurately reflect market norms and condition
    of property at time of sale.
      Georgia Department of Revenue
SENATE BILL 55
• Validation Process:
  – Ascertain the condition of the property on the
    date of sale
  – What changes have occurred to the property
    since the last assessment?
    • Did previous owners damage property
    • Has property been vandalized
  – If unable to determine the condition at the
    time of sale, including this sale may skew the
    results of the ratio study, if included.
     Georgia Department of Revenue
SENATE BILL 55
 • Validation Process (cont‟d)
   –Condition of the property should be
    considered for future valuations
   –Was personal property included in the sale
      – If so, was the personal property listed
        separately in the bill of sale or the purchase
        agreement?
       Georgia Department of Revenue
SENATE BILL 55
• Factors to consider:
  – What affect are foreclosures having on arm‟s
    length transactions in your county?
• Be Prepared:
  – To explain the local real estate market
     • All markets are not affected to the same extent
     • Be prepared to talk with taxpayers about your
       specific market area
        – They will be armed with newspaper articles, etc.
     Georgia Department of Revenue
SENATE BILL 55
 •Additional change to 48-5-2
   • The tax assessor shall consider the
     following criteria in determining the fair
     market value of property
   • Decreased value of the property based on
     limitations and restrictions resulting from
     the property being in a conservation
     easement.
      Georgia Department of Revenue
SENATE BILL 55
• Determine the rights conveyed
  – Affect on FMV because this right – normally
    development rights – were conveyed.
       Georgia Department of Revenue

SENATE BILL 55
• Amends 48-5-7.7:
  – For tax year January 1, 2009 applications for FLPA
    shall be filed on or before June 1.
  – For tax year January 1, 2010 and future all
    applications shall be filed on or before last day for
    filing ad valorem tax returns, except in the case of
    property which is the subject of reassessment, FLPA
    may be filed in conjunction with or in lieu of an
    appeal.
  – Effective January 1, 2009
       Georgia Department of Revenue

SENATE BILL 55
• Amends 48-5-274:
  – The Department of Audits and Accounts shall use the
    Standard on Assessment Ratio Studies published by
    IAAO to determine the valid transactions necessary to
    establish the measure of central tendency.
  – Provided that standard shall only be used to the
    extent it does not conflict with criteria enumerated in
    subparagraph (B) of paragraph (3) of Code section
    48-5-2.
  – Effective January 1, 2009.
       Georgia Department of Revenue

SENATE BILL 55
• Amends 48-5-306: The board shall see
  that all taxable property within the county
  is assessed and returned at its FMV…
  – When any corrections or changes including
    valuation increases or decreases or
    equalizations have been made, the board
    shall give written notice…
  – Effective January 1, 2009
    Georgia Department of Revenue

SENATE BILL 240
Effective date – April 29, 2009
Amend/Add 48-5-311(f)(4):
  At option of taxpayer, an appeal may be
  submitted to binding Arbitration.
  Taxpayers written notice of arbitration
  shall state grounds (value) for arbitration.
  Shall be filed within 45 days of notice of
  value (30 days in installment billing
  counties)
      Georgia Department of Revenue

Senate Bill 240
  – Prior to appointment of Arbitrator and within
    30 days of filing the notice of appeal, the
    taxpayer shall provide a copy of the value
    certified by a professional real estate
    appraiser, as classified by the Georgia Real
    Estate Appraisers Board.
  – If within 30 days of receiving taxpayers
    certified appraisal, the BTA accepts the
    taxpayers appraisal, the value shall become
    final.
       Georgia Department of Revenue

Senate Bill 240
  – If BTA rejects taxpayer‟s appraisal, the BOA
    shall certify within 30 days the appeal to the
    Clerk of Superior Court.
     • Who pays the filing fee?
  – BTA must certify all papers specified by
    taxpayer including staff papers used by BOA.
  – Within 15 days of filing certification to Clerk of
    Superior Court, the judge shall issue order
    authorizing the arbitration.
       Georgia Department of Revenue

Senate 240

• Procedure
  – Choosing Arbitrator:
    • Parties may agree to single arbitrator of their
      choice.
    • If no agreement, arbitrator is chosen by chief judge
      of Superior Court.
       Georgia Department of Revenue

Senate Bill 240
• Procedure
  – Qualified Arbitrators:
     • State Certified General Property appraiser
       pursuant to the rules and regulations of the
       Georgia Real Estate Appraisers Board.
     • Shall have experience or expertise in appraising
       the type of property that is subject of arbitration.
       Georgia Department of Revenue

Senate Bill 240
• Procedure
  – Timing:
     • Within 30 days of appointment, the arbitrator shall set a
       time and place to hear evidence and testimony from
       both parties.
     • Notice of hearing shall be given personally, by
       registered or certified mail or statutory overnight
       delivery, not less than 10 days before scheduled
       hearing.
     • The arbitrator may adjourn or postpone the hearing.
     • Chief judge may direct arbitrator to proceed promptly
       upon request by either party.
      Georgia Department of Revenue

Senate Bill 240
• Procedure
  – Hearing:
    • Parties shall be entitled to be heard and present
      documents, testimony and to cross-examine
      witnesses.
    • Arbitrator may make determination based on
      documents, testimony and other matters produced
      notwithstanding the failure of one party duly
      notified to appear.
      Georgia Department of Revenue

Senate Bill 240
• Procedure
  – Records:
    • Arbitrator shall maintain a record of all pleadings,
      documents, testimony, and other matters
      introduced at the hearing.
    • The arbitrator or any party to proceedings may
      have the proceedings transcribed by a court
      reporter.
      Georgia Department of Revenue

Senate Bill 240
• Procedure
  – Waiver:
    • The provisions of this paragraph may be waived at
      any time by written consent of the taxpayer and the
      board of tax assessors.
      Georgia Department of Revenue

Senate Bill 240
• Procedure
  – Decision:
    • Within 30 days of date of hearing, the arbitrator
      shall render a decision regarding the value.
    • The arbitrator shall consider a single value for the
      property submitted by the BTA; and a single value
      submitted by the taxpayer‟s appraiser.
    • The arbitrator shall consider the single values and
      other supporting evidence; and shall determine
      which value is the value for the property.
       Georgia Department of Revenue

Senate Bill 240
• Procedure
  – Cost of Arbitrator:
     • If the taxpayer‟s value is upheld by the arbitrator,
       the county shall be responsible for the fees and
       costs of such arbitrator.
     • If the BTA‟s value is upheld by the arbitrator, the
       taxpayer shall be responsible for the fees and
       costs of such arbitrator.
      Georgia Department of Revenue

Senate Bill 240
• Procedure
  – Burden of Proof:
    • The board of tax assessors shall have the burden
      of proving its opinion of value and the validity of its
      proposed assessment by a preponderance of
      evidence.
       Georgia Department of Revenue

Senate Bill 240
• Procedure
  – Freezing the
    Assessment:
     • The provision of 48-
       5-299(c) shall apply
       to the valuation
       rendered by the
       arbitrator.
  – Also applies to non-
    binding Arbitration
       Georgia Department of Revenue

Senate Bill 240
• Procedure
  – Billing:
     • If county tax bills are issued before the arbitrator
       has rendered its decision, the BTA shall specify to
       the tax commissioner the higher of the taxpayer‟s
       return valuation or 85% of the current years
       valuation as set by the BTA.
     • This amount shall be the basis for a temporary tax
       bill pending the outcome of the appeal process.
     • Also applies to non-binding Arbitration
      Georgia Department of Revenue

Senate Bill 240
• Procedure
  – Appeal to Superior Court:
    • Neither the taxpayer or BTA may appeal the value
      decision rendered by this version of Arbitration to
      Superior Court.
      Georgia Department of Revenue

SENATE BILL 240
• Amends 48-5-311
  – Appeal to Superior Court:
    • The BTA may not appeal any non-binding
      arbitration or board of equalization decision to
      Superior Court when the assessment is changed
      by 20% or less, unless the BTA gives the county
      commissioners notice of their intention to appeal.
    • The Board of Commissioners by majority vote may
      prohibit the appeal.
      Georgia Department of Revenue
Senate Bill 240
• Issues
  – Resolution to appeal when taxpayer does not
    furnish appraisal within the 30 day time
    frame?
       Georgia Department of Revenue

SENATE BILL 240
• Amends 48-5-7.7 Forest Land Protection Act
  2008
  – For tax year January 1, 2009, applications for FLPA
    shall be filed on or before June 1.
  – For January 1, 2010 and future, all applications for
    FLPA shall be filed on or before last day for filing
    returns.
  – In case of property which is subject of reassessment
    the application may be filed in conjunction with or in
    lieu of an appeal.
      Georgia Department of Revenue

SENATE BILL 240
• Amends 48-5-161 Tax Executions
  – Once an execution is entered the amount
    collected may include certain costs.
  – These costs may include title examination
    expenses, certified mail expenses,
    reasonable attorney‟s fees or other such
    necessary research expenses.
      Georgia Department of Revenue

SENATE BILL 240
• Amends 48-5-306 Notices of Change
  – Upper left corner of face of mailing envelope
    must include BTA return address and USPS
    endorsement „Return Service Requested”
  – „Official Tax Matter‟ must be clearly printed in
    boldface type in a location which meets USPS
    regulations.
  – Removes COA notice within 5 days
    requirement for BOA
      Georgia Department of Revenue

SENATE BILL 240
• Amends 48-5-511 Public Utilities
  – Each parcel of real estate included in the
    return shall be identified by address.
  – If commissioner is unable to locate property
    by address, the commissioner may request
    more information from taxpayer.
  – Such additional information may include a
    map or parcel identification information.
      Georgia Department of Revenue

 House Bill 63
• PILOT Restriction Act
  – Payment in lieu of taxes means payments
    made directly or indirectly
  – Primarily in consideration of revenue bonds to
    finance capital projects
  – In further consideration granting exemption
    from ad valorem taxation for capital projects
      Georgia Department of Revenue

 House Bill 63
• The term „payments in lieu of taxes‟ shall
  not include payments made for the use or
  occupancy of property.
       Georgia Department of Revenue

 House Bill 63
• Each county board of assessors shall continue
  to exercise its powers and discharge its duties
  and is specifically authorized, without limitation,
  to use a method of valuation for leases related to
  revenue bonds issued by a local government
  authority, based on assessments of the
  increasing interest of the non-governmental user
  in the real or personal property over the term of
  the lease or to use a simplified method
  employing a percentage of such leasehold
  interest.

				
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