Property values increase across Jefferson County
Property owners across Jefferson County saw hikes in their property values this year that increased the county tax digest by 7.96 percent, or $42 million over last year’s total of $527 million. A little more than half of that was based on real growth the county saw in 2022. The other half, about $20.8 million or 3.8 percent, was based on inflationary growth.
Last week Jefferson County’s commissioners voted to roll back its millage rate thereby offsetting potential increases in the amount citizens would pay in property taxes this year. Some cities, such as Louisville are considering doing the same. In other cities, that may choose to leave their millage rates the same, citizens can expect to see an increase on their tax bills.
Every year the Georgia Department of Revenue requires the county to calculate the amount of taxable property in each county and it also requires the tax assessor to keep local property value assessments very close to the actual sales values. If they deviate too far, the county’s ability to collect revenues can be strictly punished.
Real Growth
Real Growth happens when new homes, businesses and other property is added to the digest.
“It could be a new building or if a piece of property was exempt the year before, but became taxable again this year,” said Jefferson County’s Chief Appraiser Louisa Pennington. “There were 22 new homes built in the county is 2022.”
If it existed on Jan. 1, 2023, then it is a part of that year’s digest and is taxable in November. If a building is in construction, then whatever percentage is complete is included.
There were six new commercial improvements in 2022. Some of these were new primary structures, but others included things like a business’ new paved parking lot.
Another factor used in determining real growth is the total number of property parcels in the county.
Pennington said that if one person owned 60 acres and sold off 10 of those to someone else, then the addition of that new parcel is considered real growth.
In 2023 there were 12,033 real parcels, 11, 441 of those were taxable with 591 being exempt (owned by churches, or a city, county, state or federal government.) In 2022 there were 11,919 real parcels, 11,331 taxable and 587 exempt. So, county-wide there was increase of 114 real parcels, 110 taxable parcels, four exempt.
Inflationary Growth
“Inflationary growth is a change in scheduled values based on what the market is doing,” Pennington said. "Houses and property that sold in the previous year, we have to look at that and determine what are these types of property selling for."
Over the last couple of years, Pennington said that Jefferson County has seen properties sell for much higher prices than was expected.
“We don’t have a lot that turnover every year or every couple of years. But we saw one sell in 2021 for $80,000 and sell again in 2022 for $140,000. That is inflationary growth. That is demand in the market driving the price up.”
When this happens over and over again, the county appraisers’ office has to adjust its valuation schedules in determining what it believes is a fair market value on all property in the county. That digest is what the county has to use for taxation based on Georgia’s Department of Revenue’s code.
The county only taxes 40 percent of the assessed value.
“If we fall outside of a 38 to 42 percent sales assessment ration when we are audited each year, then the county is penalized,” Pennington said. “Last year’s sales prices and the year before were just so much more than what the sales prices were previously.”
Every year the assessor’s office looks at area sales of all property and determine how to adjust the assessed values to match what the market shows those values are.
"This year our biggest increase was on residential improvements or houses,” Pennington said. “Pretty much all homes in the county, whether they were built 40 years ago or have been around for 100 years, they are seeing appreciation because of the sales market, which is what people are willing to pay for houses.
“Demand for housing has been high. People are willing to pay. People get into bidding wars over homes. People do other things to get houses, they over offer because they’ve been turned down so many times. Or they are willing to pay $10,000 over asking."
This year the base residential improvement values of homes in Jefferson County rose by 26 percent. The county figures this through mass appraisals, by taking sales properties and valuing all other properties based on that.
Pennington said that it feels like her office is pretty close now to what the state is expecting, but she said the appraisals could be off for some properties.
“Everything is not going to be perfect,” she said. “If you think something is wrong, file an appeal.”
Pennington said perhaps her appraisers have not seen the house in some time and there have been changes there that effect the value. And her people generally only see the outside.
“So there could be things going on inside the house, good or bad, that could change the value of the property. Maybe someone has flipped it or maybe it has fallen into disrepair. The appeals process is how we catch those things.”
Citizens have 45 days from the assessment notice to file an appeal. This year notices were mailed on May 23 and the last day to file an appeal was July 7.
This article originally appeared on Augusta Chronicle: Property values increase across Jefferson County
