Assessment Freeze Homestead Exemption

By Forysth County Tax Assessor's office
Posted Saturday, March 12, 2005

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The assessment freeze homestead exemption that was enacted by HB 469 is the most misunderstood exemption available in Forsyth County.  The name of this exemption gives taxpayers the idea that their property will not be reassessed if you make application for the exemption.

THIS IS NOT TRUE

House Bill 469 does not stop reassessment.  What it actually does is offer additional homestead exemption if you property is reassessed.

The other common misconception is that your property taxes will not increase. This may not be the case as well.

HOW DOES THE EXEMPTION WORK?

The chart below shows how the exemption is calculated for anyone who applies in tax year 2004.   As you can see the exemption amount increases each time your property is reassessed.  Your taxable value stays frozen at the value of your base year.  This example shows how a 150,000 home could benefit over the period between 2004 and 2009, with the property value increasing to 200,000 over this period of time.

BASE YEAR	2003
BASE VALUE	60,000
TAX YEAR	2004
2004 ASSESSED VALUE	66,000
EXEMPTION	6,000
TAXABLE VALUE	60,000
TAX YEAR	2007
2007 ASSESSED VALUE	70,000
EXEMPTION	10,000
TAXABLE VALUE	60,000
TAX YEAR	2009
2009 ASSESSED VALUE	80,000
EXEMPTION	20,000
TAXABLE VALUE	60,000

This exemption will vary among taxpayers.  The amount will be dependant on the year that the assessment is frozen (Base Year) and the amount of reassessment to each individual parcel.  Therefore, there will be a difference in the tax savings between taxpayers.

EXEMPTION LIMITATIONS

The exemption is limited to your home and up to five (5) acres of contiguous property.

The exemption does not apply to any new buildings, additions to existing buildings or additional land purchased after the base year is established.

Another misunderstood portion of this law, is that is applies to the entire tax bill. Again, it does not.  When legislation is written to provide for an exemption, the writer is specific as to what taxing jurisdictions will be subject to the exemption.  In house bill 469 the language reads:

"Ad valorem taxes for county purposes" means all ad valorem taxes for county purposes levied by, for, or on behalf of Forsyth County, including, but not limited to, any ad valorem taxes for special district purposes, but not including taxes to pay interest on and to retire county bonded indebtedness.”

This language indicates that this exemption applies to any taxes collected on behalf of the county taxing jurisdiction.  You must remember that the school system is a separate taxing jurisdiction.

When House Bill 1709 (the age 65 school tax exemption) was written the language reads as follows:

“Ad valorem taxes for educational purposes" means all ad valorem taxes for educational purposes levied by, for, or on behalf of the Forsyth County school district, including, but not limited to, taxes to retire school bond indebtedness.”

When a bill or law grants exemption to all taxing jurisdictions, such as the disabled veterans exemption, the language in O.C.G.A. 48-5-48 reads:

“exemption being from all ad valorem taxation for state, county, municipal, and school purposes."

Due to the language of HB 469, this exemption is only applied to the portion of the your tax bill that funds County and Fire (special district) taxes.  It is NOT applied to the portion of your bill that funds the school system, state, and the portion that pays off bond indebtedness.

The chart below shows the 2003 millage rate breakdown: 

COUNTY M & O	4.30
COUNTY BOND	.50
STATE	.  25
SCHOOL	15.50
SCHOOL BOND	1.98
FIRE	1.70
TOTAL	24.23

Please also be aware that that even though your assessment for certain taxing jurisdictions may be frozen, it is not frozen for all taxing jurisdictions.  This will be seen on the line item breakdown on our tax bill.

AND

It will not protect you from all tax increases. If the School Board or the County Commissioners raise millage rates, taxes will still increase.

So while the name may be misleading, please know that this exemption can still offer substantial savings over a period of years, if you remain in the same home.

This exemption is offered in addition to the regular homestead, or any other exemptions you may qualify for.                   

     

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