SB 240 - County Boards of Tax Assessors; comprehensive revision of the appeal of assessments for ad valorem tax purposes

Current Version

PDF Version

Committees

SC:FIN
HC:W&M

Current Status

04/29/09 - Senate Date Signed by Governor

First Reader Summary

A BILL to be entitled an Act to amend Part 2 of Article 5 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to county boards of tax assessors, so as to provide for the comprehensive revision of the appeal of assessments for ad valorem tax purposes; to provide for appeal procedures, conditions, and limitations; to provide for related matters; to repeal conflicting laws; and for other purposes.

Votes

Electronically Recorded Votes
Date	Time	Vote No	Yeas	Nays	NV	Exc	Description
03/12/2009	1:54PM	Senate Vote #201	052	000	001	003	PASSAGE BY SUBSTITUTE
03/30/2009	1:46PM	House Vote #369	161	002	010	007	PASS
04/03/2009	12:01PM	Senate Vote #403	050	001	005	000	AGREE TO HOUSE SUBSTITUTE AS AMENDED
04/03/2009	7:18PM	House Vote #486	129	001	044	006	Agree Sen Am

Status History

Bill History
Date	Action
03/04/2009	Senate Read and Referred
03/09/2009	Senate Committee Favorably Reported
03/10/2009	Senate Read Second Time
03/12/2009	Senate Third Read
03/12/2009	Senate Passed/Adopted
03/17/2009	House First Readers
03/18/2009	House Second Readers
03/25/2009	House Committee Favorably Reported
03/30/2009	House Third Readers
03/30/2009	House Passed/Adopted
04/03/2009	Senate Agrees House Amend or Sub
04/03/2009	House Agree Senate Amend or Sub
04/15/2009	Senate Sent to Governor
04/29/2009	Senate Date Signed by Governor
04/29/2009	Act 61
04/29/2009	Effective Date

Footnotes

3/30/2009 Structured Rule
4/3/2009 Senate Agrees to House Sub as Amended
4/3/2009 House agrees to House Substitute as Senate amended

Versions

09 SB240/AP

Senate Bill 240

By: Senators Rogers of the 21st, Williams of the 19th, Pearson of the 51st, Staton of the 18th and Johnson of the 1st

AS PASSED

AN ACT

To amend Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to ad valorem taxation of property, so as to provide for the modernization and revision of certain provisions regarding ad valorem taxes; to revise and change certain procedures relative to the appeal of assessments for ad valorem tax purposes; to change the deadline for filing for forest land conservation use assessment; to change certain provisions regarding collection of costs, commissions, interest, and penalties; to provide for execution costs; to change certain provisions regarding notification of changes made to a taxpayer's return; to provide for additional tax return filing requirements for public utilities; to provide for related matters; to provide effective dates and applicability; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to ad valorem taxation of property, is amended in subsection (f) of Code Section 48-5-311, relating to county boards of tax assessors, county boards of equalization, and appeals of ad valorem tax assessments, by adding new paragraphs to read as follows:

"(4) For any dispute involving the value of real property, at the option of the taxpayer, an appeal may be submitted to binding arbitration in accordance with this paragraph:

(A) Following an election by the taxpayer to use the binding arbitration provisions of this subsection, a binding arbitration appeal shall be effected by the taxpayer filing a written notice of arbitration with the county board of tax assessors. The notice of arbitration shall specifically state the grounds for arbitration. The notice shall be filed within 45 days from the date of mailing the notice pursuant to Code Section 48-5-306 except that for counties or municipal corporations providing for the collection and payment of ad valorem taxes in installments, the time for filing the notice of appeal shall be 30 days. Prior to appointment of the 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 as specified in this paragraph to the board of assessors for consideration. If, within 30 days of receiving the taxpayer's certified appraisal, the board of assessors accepts the taxpayer's appraisal, that value shall become final. If the county board of tax assessors rejects the taxpayer's appraisal, the county board of tax assessors shall certify within 30 days the appeal to the clerk of the superior court along with any other papers specified by the person seeking arbitration, including, but not limited to, the staff information from the file used by the county board of tax assessors. All papers and information certified to the clerk shall become a part of the record on arbitration. Within 15 days of filing the certification to the clerk of the superior court, the judge shall issue an order authorizing the arbitration; and

(B) The arbitration shall be conducted pursuant to the following procedure:

(i) If the parties agree, the matter shall be submitted to a single arbitrator chosen by the parties. If the parties cannot agree on the single arbitrator, the arbitrator shall be chosen by the chief judge of the superior court of the circuit in which the property is located;

(ii) In order to be qualified to serve as an arbitrator, a person shall be classified as a State Certified General Property Appraiser pursuant to the rules and regulations of the Georgia Real Estate Appraisers Board and shall have experience or expertise in appraising the type of property that is the subject of the arbitration;

(iii) The arbitrator, within 30 days after his or her appointment, shall set a time and place to hear evidence and testimony from both parties. He or she shall provide written notice to the parties personally or by registered or certified mail or statutory overnight delivery not less than ten days before the hearing. The arbitrator may adjourn or postpone the hearing. The chief judge of the superior court of the circuit in which the property is located may direct the arbitrator to proceed promptly with the hearing and the determination of the appeal upon application of any party;

(iv) At the hearing, the parties shall be entitled to be heard, to present documents, testimony, and other matters, and to cross-examine witnesses. The arbitrator may hear and determine the controversy upon the documents, testimony, and other matters produced notwithstanding the failure of a party duly notified to appear;

(v) The arbitrator shall maintain a record of all pleadings, documents, testimony, and other matters introduced at the hearing. The arbitrator or any party to the proceeding may have the proceedings transcribed by a court reporter;

(vi) The provisions of this paragraph may be waived at any time by written consent of the taxpayer and the board of tax assessors;

(vii) Within 30 days of the date of the hearing, the arbitrator shall render a decision regarding the value of the property subject to arbitration;

(viii) In order to determine the value, the arbitrator shall consider a single value for the property submitted by the board of assessors and a single value submitted by the taxpayer. The taxpayer shall be responsible for the cost of any appraisal by the taxpayer's appraiser;

(ix) Upon consideration of the single value submitted by the board of assessors and the single value submitted by the taxpayer, and evidence supporting the values submitted by the board of assessors and the taxpayer, the arbitrator shall determine which value is the value for the property under appeal;

(x) If the taxpayer's value is determined by the arbitrator to be the value, the county shall be responsible for the fees and costs of such arbitrator. If the board of tax assessors' value is determined by the arbitrator to be the value, the taxpayer shall be responsible for the fees and costs of such arbitrator; and

(xi) 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.

(5) The provisions in subsection (c) of Code Section 48-5-299 shall apply to the valuation established or rendered by any arbitrator or board of arbitration.

(6) If the county's tax bills are issued before an arbitrator or board of arbitration has rendered its decision on property which is on appeal, the county board of tax assessors shall specify to the county tax commissioner the higher of the taxpayer's return valuation or 85 percent of the current year's valuation as set by the county board of tax assessors. This amount shall be the basis for a temporary tax bill to be issued. Such tax bill shall be accompanied by a notice to the taxpayer that the bill is a temporary tax bill pending the outcome of the appeal process. Such notice shall also indicate that upon resolution of the appeal, there may be additional taxes due or a refund issued."

SECTION 2.

Said chapter is further amended in said Code section by revising subsection (g) as follows:

"(g) Appeals to the superior court.

(1) The taxpayer or, except as otherwise provided in this paragraph and except for a determination of value by an arbitrator pursuant to paragraph (4) of subsection (f) of this Code section, the county board of tax assessors may appeal decisions of the county board of equalization, the arbitrator, or the arbitrators, as applicable, to the superior court of the county in which the property lies. A county board of tax assessors shall not appeal a decision of the county board of equalization or arbitrator or board of arbitration, as applicable, other than an arbitration pursuant to paragraph (4) of subsection (f) of this Code section changing an assessment by 20 percent or less unless the board of tax assessors gives the county governing authority a written notice of its intention to appeal, and, within ten days of receipt of the notice, the county governing authority by majority vote does not prohibit the appeal. In the case of a joint city-county board of tax assessors, such notice shall be given to the city and county governing authorities, either of which may prohibit the appeal by majority vote within the allowed period of time.

(2) An appeal by the taxpayer as provided in paragraph (1) of this subsection shall be effected by mailing to or filing with the county board of tax assessors a written notice of appeal. Any such notice of appeal which is mailed pursuant to this paragraph shall be deemed to be filed as of the date of the United States Postal Service postmark on such notice of appeal. An appeal by the county board of tax assessors shall be effected by giving notice to the taxpayer. The notice to the taxpayer shall be dated and shall contain the name and the last known address of the taxpayer. The notice of appeal shall specifically state the grounds for appeal. The notice shall be mailed or filed within 30 days from the date on which the decision of the county board of equalization is mailed pursuant to subparagraph (e)(6)(D) of this Code section or within 30 days from the date on which the arbitration decision is rendered pursuant to subparagraph (f)(3)(D) of this Code section, whichever is applicable. The county board of tax assessors shall certify to the clerk of the superior court the notice of appeal and any other papers specified by the person appealing including, but not limited to, the staff information from the file used by either the county board of tax assessors or the county board of equalization. All papers and information certified to the clerk shall become a part of the record on appeal to the superior court. At the time of certification of the appeal, the county board of tax assessors shall serve the taxpayer and his or her attorney of record, if any, with a copy of the notice of appeal and with the civil action file number assigned to the appeal. Such service shall be effected in accordance with subsection (b) of Code Section 9-11-5. No discovery, motions, or other pleadings may be filed by the county board of tax assessors in the appeal until such service has been made.

(3) The appeal shall constitute a de novo action. The board of tax assessors shall have the burden of proving their opinions of value and the validity of their proposed assessment by a preponderance of evidence. Upon a failure of the board of tax assessors to meet such burden of proof, the court may, upon motion or sua sponte, authorize the finding that the value asserted by the taxpayer is unreasonable and authorize the determination of the final value of the property.

(4)(A) The appeal shall be heard before a jury at the first term following the filing of the appeal unless continued by the court upon a showing of good cause. If only questions of law are presented in the appeal, the appeal shall be heard as soon as practicable before the court sitting without a jury. Each hearing before the court sitting without a jury shall be held within 30 days following the date on which the appeal is filed with the clerk of the superior court. The time of any hearing shall be set in consultation with the taxpayer and at a time acceptable to the taxpayer between the hours of 8:00 A.M. and 7:00 P.M. on a business day.

(B)(i) The county board of tax assessors shall use the valuation of the county board of equalization or the arbitrator or arbitrators, as applicable, in compiling the tax digest for the county. If the final determination of value on appeal is less than the valuation set by the county board of equalization, the arbitrator, or the arbitrators, as applicable, the taxpayer shall receive a deduction in such taxpayer's taxes for the year in question. Such deduction shall be refunded to the taxpayer and shall include interest on the amount of such deduction at the same rate as specified in Code Section 48-2-35 which shall accrue from November 15 of the taxable year in question or the date the final installment of the tax was due or was paid, whichever is later. In no event shall the amount of such interest exceed $150.00.

(ii) If the final determination of value on appeal is 80 percent or less of the valuation set by the county board of equalization as to commercial property, or 85 percent or less of the valuation set by the county board of tax assessors as to other property, the taxpayer, in addition to the interest provided for by this paragraph, shall recover costs of litigation and reasonable attorney's fees incurred in the action. This division shall not apply when the property owner has failed to return for taxation the property that is under appeal.

(iii) If the final determination of value on appeal is greater than the valuation set by the county board of equalization, the arbitrator, or the arbitrators, as applicable, the taxpayer shall be liable for the increase in taxes for the year in question due to the increased valuation fixed on appeal with interest at the same rate as specified in Code Section 48-2-35. Such interest shall accrue from November 15 of the taxable year in question or the date the final installment of tax was due to the date the additional taxes are remitted, but in no event shall the amount of such interest exceed $150.00. Any taxpayer shall be exempt each taxable year from any such interest owed under this subparagraph with respect to such taxpayer's homestead property."

SECTION 2A.

Said chapter is further amended by revising paragraph (1) of subsection (j) of Code Section 48-5-7.7, relating to forest land conservation use assessment, as follows:

"(j)(1) For the taxable year beginning January 1, 2009, all applications for conservation use assessment under this Code section, including the covenant agreement required under this Code section, shall be filed on or before June 1 of the tax year for which such conservation use assessment is sought, except that in the case of property which is the subject of a reassessment by the board of tax assessors an application for conservation use assessment may be filed in conjunction with or in lieu of an appeal of the reassessment. For each taxable year beginning on or after January 1, 2010, all applications for conservation use assessment under this Code section, including the covenant agreement required under this Code section, shall be filed on or before the last day for filing ad valorem tax returns in the county for the tax year for which such conservation use assessment is sought, except that in the case of property which is the subject of a reassessment by the board of tax assessors an application for conservation use assessment may be filed in conjunction with or in lieu of an appeal of the reassessment. An application for continuation of such conservation use assessment upon a change in ownership of all or a part of the qualified property shall be filed on or before the last date for filing tax returns in the year following the year in which the change in ownership occurred. Applications for conservation use assessment under this Code section shall be filed with the county board of tax assessors who shall approve or deny the application. The county board of tax assessors shall file a copy of the approved application in the office of the clerk of the superior court in the county in which the eligible property is located. The clerk of the superior court shall file and index such application in the real property records maintained in the clerk's office. If the application is not so recorded in the real property records, a transferee of the property affected shall not be bound by the covenant or subject to any penalty for its breach. The fee of the clerk of the superior court for recording such applications shall be paid by the qualified owner of the eligible property with the application for conservation use assessment under this Code section and shall be paid to the clerk by the board of tax assessors when the application is filed with the clerk. If the application is denied, the board of tax assessors shall notify the applicant in the same manner that notices of assessment are given pursuant to Code Section 48-5-306 and shall return any filing fees advanced by the owner. Appeals from the denial of an application by the board of tax assessors shall be made in the same manner that other property tax appeals are made pursuant to Code Section 48-5-311."

SECTION 2B.

Said chapter is further amended by revising subsection (c) of Code Section 48-5-161, relating to issuance of tax executions, as follows:

"(c)(1) The officer in whose hands the execution is placed shall proceed at once to collect the execution and, when the execution is paid by the defendant voluntarily or by levy and sale, the officer shall enter the amount collected including all costs, commissions, interest, and penalties as provided by law on the execution. The officer shall return the execution to the tax collector or tax commissioner with the amount of tax collected. The tax collector or tax commissioner shall at once copy the entry of the officer on his or her execution docket and file the execution in his or her office.

(2)(A) As used in this paragraph, the term 'costs' includes, but is not limited to, title examination expenses, certified mail expenses, reasonable attorney's fees, or other such necessary research expenses.

(B) Once an execution is issued against a delinquent or defaulting taxpayer, the sheriff or ex officio sheriff shall collect, in addition to any other costs, commissions, interest, and penalties, the actual expenses incurred by the county in issuing the execution and administering the levy by imposing a levy administration fee which shall be 5 percent of the delinquent tax or $250.00, whichever is the lesser. Regardless of any other provision of this paragraph, however, no such levy administration fee shall be less than $50.00.

(3) The levy administration fee provided by paragraph (2) of this subsection shall likewise be charged and collected when the execution is enforced through garnishment as provided for in Code Section 48-3-12."

SECTION 2C.

Said chapter is further amended by revising subsection (a) of Code Section 48-5-306, relating to notice of changes made in taxpayer's return, posting notice, and new assessment description, as follows:

"(a) Method of giving notice to taxpayer of changes made in such taxpayer's return. Each county board of tax assessors may meet at any time to receive and inspect the tax returns to be laid before it by the tax receiver or tax commissioner. The board shall examine all the returns of both real and personal property of each taxpayer, and if in the opinion of the board any taxpayer has omitted from such taxpayer's returns any property that should be returned or has failed to return any of such taxpayer's property at its fair market value, the board shall correct the returns, assess and fix the fair market value to be placed on the property, make a note of such assessment and valuation, and attach the note to the returns. The board shall see that all taxable property within the county is assessed and returned at its fair market value and that fair market values as between the individual taxpayers are fairly and justly equalized so that each taxpayer shall pay as nearly as possible only such taxpayer's proportionate share of taxes. When any such corrections, changes, or equalizations have been made by the board, the board shall give written notice to the taxpayer of any changes made in such taxpayer's returns. The notice may be given personally by leaving the notice at the taxpayer's dwelling house, usual place of abode, or place of business with some person of suitable age and discretion residing or employed in the house, abode, or business, or by sending the notice through the United States mail as first-class mail to the taxpayer's last known address. When notice is given by mail, the county board of tax assessors' return address shall appear in the upper left corner of the face of the mailing envelope and with the United States Postal Service endorsement 'Return Service Requested' and the words 'Official Tax Matter' clearly printed in boldface type in a location which meets United States Postal Service regulations."

SECTION 2D.

Said chapter is further amended by revising subsection (b) of Code Section 48-5-511, relating to returns of public utilities to commissioner, as follows:

"(b) The returns of each public utility shall be in writing and sworn to under oath by the chief executive officer to be a just, true, and full return of the fair market value of the property of the public utility without any deduction for indebtedness. Each class or species of property shall be separately named and valued as far as practicable and shall be taxed like all other property under the laws of this state. The returns shall also include the capital stock, net annual profits, gross receipts, business, or income (gross, annual, net, or any other kind) for which the public utility is subject to taxation by the laws of this state. Each parcel of real estate included in the return shall be identified by its street address. If the commissioner is unable to locate the property by its street address after exercising due diligence in attempting to locate the property, then the commissioner may request more information from the taxpayer to help identify the exact location of the property. Such additional information may include a map or parcel identification information."

SECTION 3.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval and Sections 1 and 2 of this Act shall be applicable to all property tax appeals submitted to arbitration or appealed to superior court on or after that date.

SECTION 4.

All laws and parts of laws in conflict with this Act are repealed.