09 LC 18
8348ERS
The
House Committee on Ways and Means offers the following substitute to SB
240:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 48-5-311 of the Official Code of Georgia Annotated, relating
to county boards of tax assessors, county boards of equalization, and appeals of
ad valorem tax assessments, so as to revise and change certain procedures
relative to the appeal of assessments for ad valorem tax purposes; to provide
for related matters; to provide an effective date; to provide for applicability;
to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 48-5-311 of the Official Code of Georgia Annotated, relating to county
boards of tax assessors, county boards of equalization, and appeals of ad
valorem tax assessments, is amended in subsection (f) 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
Code section is further amended by revising subsection (g) as follow:
"(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
may
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
15
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
or
and
his or her attorney
or
agent 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
40
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
3.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval and 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.