Bill Text: GA SB234 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Georgia Public Revenue Code; extensively revise provisions; ad valorem tax assessments and appeals from such assessments

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2012-03-29 - Senate Conference Committee Report Adopted [SB234 Detail]

Download: Georgia-2011-SB234-Introduced.html

---

11 LC 14 0478ER

Senate Bill 234

By: Senator Rogers of the 21st

A BILL TO BE ENTITLED
AN ACT

To amend Title 48 of the Official Code of Georgia Annotated, the "Georgia Public Revenue Code," so as to extensively revise provisions relating to ad valorem tax assessments and appeals from such assessments; to provide that no execution shall issue while an appeal is pending; to provide a procedure for taxpayers to notify tax officials of errors on their part and for correction of errors; to provide for a notice of excessive increase where a tax assessment is increased by more than a certain percentage; to provide for removal of tax assessors for violation of oath of office; to extensively revise procedures for assessment appeals and arbitration; to provide for recovery of certain interest, costs, attorney's fees, and other amounts by taxpayers who appeal successfully under certain circumstances; to provide for other related matters; to provide for an effective date and applicability; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Title 48 of the Official Code of Georgia Annotated, the the "Georgia Public Revenue Code," is amended in Code Section 48-3-3, relating to issuance of executions for nonpayment of taxes, by revising subsections (b) and (c) as follows:

"(b) The tax collector or tax commissioner shall issue executions for nonpayment of taxes collectable by the tax collector or tax commissioner at any time after 30 days have one year has elapsed since giving notice as provided in subsection (c) of this Code section. The executions shall be directed to all and singular sheriffs and constables of the state. No executions for nonpayment of taxes shall be issued for any year as to which the property is in an appeal or for any years affected by the appeal until there has been a final determination of the value of the property.

(c) As soon as the last day for the payment of taxes has arrived, the tax collector or tax commissioner shall notify in writing, by certified mail or statutory overnight delivery, the taxpayer of the fact that the taxes have not been paid and that, unless paid, an execution shall be issued; provided, however, that notice shall not be required for taxes due on personal property and executions may be issued on the day next following the day when taxes are due. If the tax collector or tax commissioner operates a website, the notice shall also be posted on the website. If the tax collector or tax commissioner has an e-mail address for the taxpayer, the notice shall also be delivered by e-mail."

SECTION 2.

Said title is further amended in said Code Section 48-3-3 by adding a new subsection (g) to read as follows:

"(g)(1) Any taxpayer may send written notice to the tax commissioner or tax collector, by certified mail or statutory overnight delivery, of any factual errors by the tax assessor or tax commissioner. The tax commissioner or tax collector shall correct such factual errors within 30 days of the date of receipt of the notice and a corrected tax bill shall be reissued to the taxpayer, if such bill was determined to need correction. The corrected bill due date shall be 30 days from the date of reissuance and shall not include any previous interest or penalties due.

(2) If any errors by the tax commissioner or tax collector resulted in an issuance of execution for nonpayment of taxes, the county shall be responsible for redeeming all related tax liens, including all penalties and interest.

(3) If the tax assessor or tax collector fails to comply with the deadline in paragraph (1) of this subsection, the taxpayer may appeal to the superior court of the county in which the property is located. If through mediation, admission, agreement, or any other legal proceeding the tax assessor or tax collector is determined to have committed errors, the taxpayer shall recover costs of litigation and all attorney's fees incurred in the action. The county may not appeal such recovered costs and awards, nor shall the court reduce such awards."

SECTION 3.

Said title is further amended in Code Section 48-5-306, relating to annual notice of ad valorem tax assessment, by revising paragraph (1) of subsection (b) as follows:

"(1) The annual notice of current assessment required to be given by the county board of tax assessors under subsection (a) of this Code section shall be dated and shall contain the name and last known address of the taxpayer. The annual notice shall conform with the state-wide uniform assessment notice which shall be established by the commissioner by rule and regulation and shall contain:

(A) The amount of the previous assessment;

(B) The amount of the current assessment;

(C) The year for which the new assessment is applicable;

(D) A brief description of the assessed property broken down into real and personal property classifications;

(E) The fair market value of property of the taxpayer subject to taxation and the assessed value of the taxpayer's property subject to taxation after being reduced;

(F) The name, phone number, and contact information of the person in the assessors' office who is administratively responsible for the handling of the appeal and who the taxpayer may contact if the taxpayer has questions about the reasons for the assessment change or the appeals process;

(G) If available, the website address of the office of the county board of tax assessors; and

(H) A statement that all documents and records used to determine the current value are available upon request; and

(I) The words 'EXCESSIVE INCREASE' in boldface and capitalized type positioned at the top of such notice if the property was increased in value more than 5 percent, in a single year, since its last reassessment and the property was not improved, as definitively evidenced by the issuance of a building permit since its last reassessment."

SECTION 4.

Said title is further amended in Code Section 48-5-311, relating to boards of equalization and appeals of ad valorem tax assessments, by adding a new paragraph (6) of subsection (c) to read as follows:

"(6) Any member of the board of equalization shall be removed by any judge of the superior court of the county of which the member serves if the oath specified in paragraph (5) of this subsection is determined to have been knowingly violated."

SECTION 5.

Said title is further amended in said Code Section 48-5-311 by revising subparagraph (e)(1)(A) as follows:

"(1)(A) Any taxpayer or property owner as of the last date for filing an appeal may elect to file an appeal from an assessment by the county board of tax assessors to either:

(i) The county board of equalization as to matters of taxability, uniformity of assessment, and value, and, for residents, as to denials of homestead exemptions pursuant to paragraph (2) of this subsection;

(ii) An arbitrator as to matters of value pursuant to subsection (f) of this Code section; or

(iii) A hearing officer as to matters of value and uniformity for a parcel of nonhomestead real property with a fair market value in excess of $1 million pursuant to subsection (e.1) of this Code section; or

. (iv) The superior court of the county in which the property lies, if:

(I) The taxpayers chooses not to appeal under division (i), (ii), or (iii) of this subparagraph; and

(II) The assessment of the property was increased by more than 5 percent in a single year since its last reassessment and the property has not been improved since its last reassessment as evidenced by the issuance of a building permit.

This division (iv) shall not be deemed to conflict with a taxpayer's rights under the other divisions of this subparagraph or the taxpayer's right to appeal to superior court but shall be considered an additional choice of the taxpayer.

The commissioner shall establish by rule and regulation a uniform appeal form that the taxpayer may use."

SECTION 6.

Said title is further amended in said Code Section 48-5-311 by revising subparagraph (e)(2)(C) as follows:

"(C) If changes or corrections are made by the county board of tax assessors, the board shall notify the taxpayer in writing, by certified mail or statutory overnight delivery, of such changes. If the board of assessors operates a website, the notice shall also be posted on the website. If the board of assessors has an e-mail address for the taxpayer, the notice shall also be delivered by e-mail. If the taxpayer is dissatisfied with such changes or corrections, the taxpayer shall, within 30 days of the date of mailing of the change notice, institute an appeal to the county board of tax assessors by e-mailing, if the county board of tax assessors has adopted a written policy consenting to electronic service, or by mailing to or filing with the county board of tax assessors a written notice of appeal. The county board of tax assessors shall send or deliver the notice of appeal and all necessary papers to the county board of equalization."

SECTION 7.

Said title is further amended in said Code Section 48-5-311 by revising subdivision (e)(6)(D)(iii)(II) as follows:

"(II) If the final determination of the value on appeal is less than the valuation thus used, 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. Such deduction shall also include a refund of any penalties on the amount of such deduction."

SECTION 8.

Said title is further amended in said Code Section 48-5-311 by adding at the end of subsection (e) new paragraphs (10) and (11) to read as follows:

"(10) The tax assessor shall immediately forward any final determination of value to the tax commissioner.

(11) If the taxpayer is successful in any legal action against the county under this subsection (e) whether through mediation, admission, agreement, or any other legal proceeding, the taxpayer, in addition to the penalties and interested provided for, shall recover any costs of litigation and attorney's fees incurred in the action. The court shall not reduce such award, nor shall the county appeal."

SECTION 9.

Said title is further amended in said Code Section 48-5-311 by revising subsections (f) and (g) as follows:

"(f) Arbitration.

(1) As used in this subsection, the term 'certified appraisal' means an appraisal or appraisal report given, signed, and certified as such by a real property appraiser as classified by the Georgia Real Estate Commission and the Georgia Real Estate Appraisers Board.

(2) At the option of the taxpayer an appeal shall be submitted to arbitration in accordance with this subsection.

(3)(A) Following an election by the taxpayer to use the arbitration provisions of this subsection, an arbitration appeal shall be effected by the taxpayer by e-mailing, if the county board of tax assessors has adopted a written policy consenting to electronic service, or by filing a written notice of arbitration appeal with the county board of tax assessors. The notice of arbitration appeal 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. Within ten days of receipt of a taxpayer's notice of arbitration appeal, the board of tax assessors shall send to the taxpayer an acknowledgment of receipt of the appeal; a notice that the taxpayer must, within 45 days of the filing of the notice, provide to the board of assessors for consideration a copy of a certified appraisal; and a confirmation of the amount of the filing fees, if any, required under Code Section 15-6-77 and notice that within 45 days the taxpayer shall pay to the clerk of the superior court the fees, if the board of assessors rejects the appraisal. Failure of the taxpayer to provide such certified appraisal and filing fees within such 45 days shall terminate the appeal unless the taxpayer within such 45 day period elects to have the appeal forwarded to the board of equalization. Prior to appointment of the arbitrator and within 45 days of filing the notice of appeal, the taxpayer shall provide a copy of the certified appraisal as specified in this paragraph to the board of assessors for consideration. Within 45 days of receiving the taxpayer's certified appraisal, the board of assessors shall either accept the taxpayer's appraisal, in which case that value shall become final or the county board of tax assessors shall reject the taxpayer's appraisal by sending notice of rejection to the taxpayer, by certified mail or statutory overnight delivery, together with a demand for the filing fees to be paid within 30 days after the date of the sending of the notice, in which case the county board of tax assessors shall certify within 45 days ten days after receipt of the filing fees certify the appeal to the clerk of the superior court of the county in which the property is located along with any other papers specified by the person seeking arbitration under this subsection, including, but not limited to, the staff information from the file used by the county board of tax assessors. In the event that the county board of tax assessors neither accepts nor rejects the value set out in the certified appraisal within such 45 day period 45 days after receipt of the certified appraisal, then the certified appraisal shall become the final value. In any case where a taxpayer properly filed for the 2009 tax year a notice of binding arbitration appeal and provided the required certified appraisal in accordance with this paragraph and the board of assessors neither accepted nor rejected the value set out in such certified appraisal within the 30 day period formerly specified under this subparagraph, then for purposes of the 2009 tax year, the value set forth in the taxpayer's certified appraisal shall be deemed the final value. All papers and information certified to the clerk shall become a part of the record on arbitration. At the time of certification of the appeal, the county board of tax assessors shall serve the taxpayer and the taxpayer's attorney of record, if any, or employee with a copy of the certification along with any other papers specified by the person seeking arbitration along with the civil action file number assigned to the appeal. Within 15 days of filing the certification to the clerk of the superior court, the chief judge of the superior court of the circuit in which the property is located shall issue an order authorizing the arbitration.

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

(i) The board of assessors shall include in the notice of rejection of the taxpayer's certified appraisal a notice of a meeting time and place to decide on an arbitrator, to occur within 60 days after the date of sending of the rejection of the taxpayer's appraisal. If such meeting does not occur within the 60 days due to any fault of the assessor, the taxpayer's certified appraisal shall become the final determination of value. If the parties agree, the matter shall be submitted to a single arbitrator chosen by the parties. If Only if the parties cannot agree on the single arbitrator, the arbitrator shall be chosen by the chief any judge of the superior court of the circuit in which the property is located within 90 days after the date of the rejection of the taxpayer's certified appraisal. If a judge fails to choose an arbitrator within such 90 day period, the taxpayer's certified appraisal shall become the final determination of value;

(ii) In order to be qualified to serve as an arbitrator, a person shall be classified as a state certified general real property appraiser or state certified residential real property appraiser pursuant to the rules and regulations of the Georgia Real Estate Commission and 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 within 90 days after the date of his or her appointment. The arbitrator 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 Any 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) At the conclusion 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 the single value for the property submitted by the board of assessors in the original notice sent to the taxpayer and a the single value submitted by the taxpayer in the original certified appraisal submitted to the board of assessors by the taxpayer. The taxpayer shall be responsible for the initial 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 clerk of the superior court's fees, if any, and the fees and costs of such arbitrator, and the costs of the taxpayer's certified appraisal. If the board of tax assessors' value is determined by the arbitrator to be the value, the taxpayer shall be responsible for the clerk of the superior court's fees, if any, and 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.

(4) The provisions in subsection (c) of Code Section 48-5-299 shall apply to the valuation established or rendered by any county board of equalization, arbitrator, hearing officer, or superior court.

(5) If the county's tax bills are issued before an arbitrator 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.

(6) If the taxpayer is successful in any agreement, admission, mediation, or other legal proceeding concerning enforcement of any issue within this subsection (f), the taxpayer shall recover costs of litigation and all attorney's fees incurred in the action. The court shall not reduce such award. Additionally, the county may not appeal any decision under this subsection.

(g) Appeals to the superior court.

(1) The taxpayer or the county board of tax assessors may appeal decisions of the county board of equalization or hearing officer, as applicable, to the superior court of the county in which the property lies. By mutual written agreement, the taxpayer and the county board of tax assessors may waive an appeal to the county board of equalization and initiate an appeal under this subsection. A county board of tax assessors shall not appeal a decision of the county board of equalization or hearing officer, as applicable, 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 e-mailing, if the county board of tax assessors has adopted a written policy consenting to electronic service, or by mailing to or filing with the county board of tax assessors a written 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 or hearing officer is mailed pursuant to subparagraph (e)(6)(D) or paragraph (6) of subsection (e.1) of this Code section. 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 the county board of tax assessors, the county board of equalization, or the hearing officer. 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 its opinions of value and the validity of its 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 placed on the court's next available jury or bench trial calendar, at the taxpayer's election, 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 hearing officer, 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 or hearing officer, 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. The taxpayer shall also receive reimbursement for any interest and penalties charged on the amount of the deduction if paid by the taxpayer.

(ii) If the final determination of value on appeal, whether through mediation, admission, agreement, or any other legal proceeding is 80 percent or less of the valuation set by the county board of equalization or hearing officer 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 double the attorney's fees incurred in the action shall be paid directly to the attorney. The county may not appeal such recovered costs and awards provided for in this division. Additionally, the county may not appeal the determination of value. The court shall not reduce the costs and fees specified in this division.

(iii) If the final determination of value on appeal is greater than the valuation set by the county board of equalization or hearing officer, 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.

(iv) If the taxpayer's property was increased in assessment by more than 5 percent and the taxpayer appealed directly to the superior court under division (e)(1)(A)(iv) of this Code section and the final determination of value on appeal was reduced by more than 5 percent, whether through mediation, admission, agreement, or any other legal proceeding, the taxpayer, in addition to the costs and interest provided for, shall recover costs of litigation and any attorney's fees incurred in the action. The county may not appeal such recovered costs and awards."

SECTION 10.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval and shall apply to the ad valorem tax year beginning January 1, 2011, as well as all future ad valorem tax years.

SECTION 11.

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