Criteria for choosing property tax consultants in the Atlanta area.
Every year, property tax consultants in Atlanta help thousands of property owners reassess property tax values, prepare valuations, and file tax claims. With real estate prices increasing and valuations being affected by the pandemic, it’s becoming quite common to seek help from professional property tax advisors and consultants.
The need for assistance from property tax advisors in Atlanta and surrounding metro areas is on the rise. Property tax consultants can help clients navigate complicated tax structures and comply with local law. Most importantly, property tax consultants can assist property owners in reducing property tax liability and meet important payment deadlines.
Before seeking property tax consultant services, let us first understand the basic tax structure in Georgia. This guide will walk us through the basics of property tax and everything we need to know to choose the right consultant.
Here is what we’ll learn:
How to Calculate the Property Tax in Georgia
In Georgia, as elsewhere in the United States, local county officials determine the tax rate that we must pay every year. The tax rate is not constant, which means that it can change every year based on the existing market value of the real estate.
When making an assessment, property owners in Atlanta can use the following formula to get an idea of the tax they are likely to pay:
(Property Value x Assessment Rate) – Exemptions) x Property Tax Rate = Tax Bill
Let’s look at the four tax components in detail:
Assessment Rate
In Georgia, the property is required to be assessed at 40% of the fair market value. Properties can be assessed based on different methods. One of the most common methods to assess residential properties is the income method that is based on the rent you could make if the residential property was rented.
If the hypothetical property value is $100,000, the assessment rate is:
$100,000 * 40% = $40000
Property Value
The property value used to calculate the property tax is the fair market value of our home. The fair market value of our homes depends on the condition, location, and other factors. Under normal conditions, the easiest way to price a home is to look at the price of comparable homes in our neighborhoods.
To determine the fair value, every county employs a county assessor who tries to calculate the value of properties in a particular tax district. The assessment is also based on the existing market values but the final assessed value can differ. This is why we need to keep an eye on the assessed value.
The assessment of property value by the county assessor can vary significantly because they do it only once every year. If the price of property falls significantly between the time of the assessment and the time to pay the tax, we are likely going to pay much more because our property was valued when prices were high. Under these circumstances, we should ask property tax consultants in Atlanta to help us reprice our property tax according to its existing fair value.
Tax Exemptions
Some real estate properties are exempt from real estate tax. These usually include government properties and certain religious or nonprofit real estate. Based on the state and county laws, properties owned by senior citizens, veterans, and the disabled may also get some sort of exemption.
Of all these exemptions, the homestead exemption is perhaps the most popular because most homeowners are eligible for this exemption. The homestead protection allows property owners to protect anywhere from $5,000 to $50,000 the value of the primary residence.
If we use any of our property as our primary residence, then we should apply for a homestead exemption. Property tax advisors in Atlanta can assist homeowners in applying for such exemptions. Residents of Atlanta can get an exemption of $30,000 Plus 2.6% Floating Homestead if the primary residence is located within the city limits.
Property Tax Rate
Also known as mill rate or millage, the millage tax rate is the amount of tax payable per dollar of the assessed value of a property. It can differ based on the county in which the property is located. For instance, the Fulton County Board of Commissions requires all properties to be assessed at 9.78% of their market value. In simple words, it means that we need to pay approximately $98 for every $1000 that we own.
How to Reduce Property Tax in Atlanta?
Property tax in Fulton County is the highest in the Peach State. While there is no doubt that the tax money is spent on improving local facilities, it doesn’t mean we should pay more than our fair share. If you think you should not be paying an unfair amount, take a look at these very useful tips to reduce the tax:
Appeal the Taxable Assessment Rate
As discussed, every year someone from the county will assess the potential market value of our homes. The assessment is done to determine the fair market price of our homes and similar homes in the neighborhood. Assessment notices are mailed every year between April and June. The notice also contains important information about the deadline to appeal.
It is important to carefully evaluate the price assessment. If the price seems high, get assistance from Georgia property tax appeal services. Work with a professional to reevaluate the property and file a case before the deadline. If the claim is accepted, it is not unusual to see property owners save hundreds of dollars on the tax bill.
Apply For Homestead Exemption
Take advantage of the homestead exemption. This is particularly useful for new homes and properties because the exemption is automatically renewed once it is filed. Fulton County allows homestead exemption of $30,000 if the property is our primary residence.
We can even get a 2.6% floating homestead exemption. The exemption is pretty useful because it lets us subtract the cost of a potential rise in the property value every year. Besides homestead exemption, the homeowner is also eligible for other types of exemptions based on age, previous job, family, and disability. Any one of the experienced property tax consultants in Atlanta can provide us further details on additional tax exemptions we’re entitled to.
Invite the Tax Assessor
Most of us hesitate to invite tax assessors inside our homes. This is a big mistake, which can come back to haunt us when it’s tax time. It is logical to talk to the tax assessor because otherwise they will guess the value and make subjective decisions.
For instance, a house with a good curb appeal often tempts tax assessors to increase their valuation. Similarly, if the house looks neat from the outside, the tax assessor may automatically assume that it is flawless from the inside as well. Unfortunately, the subjective evaluation may also prompt the assessor to assign the highest assessed value possible to the property.
This is why we should invite the assessor and show them any downside of the home. If anything is broken or there is a shabby corner, let the assessor see it. It is the only way to keep authorities from overvaluing our homes and making subjective decisions.
Research the Neighborhood
The best thing we can do is to look at the assessed home value of similar homes in our neighborhood. Visit the local town hall to view the public record of every property in the area. The public record can give us a clear insight into the reasonable value of our property. This research is vital because we can easily find any discrepancies in our home value.
For the sake of discussion, let’s suppose that our 2-bedroom home is valued at $250,000. The home also includes one covered garage for car parking. When looking at the valuation record, we suddenly notice that a couple of nearby 2-bedroom homes with a swimming pool, garage, and an outdoor deck are valued at $240,000. It means that there is a definite flaw in the property assessment, which will unfairly increase our property tax.
Unless the other homes are very old, there is no doubt that the appraiser needs to revisit our home. If in doubt, contact a reliable property tax consultant in Atlanta who can appeal on your behalf.
Why Hire a Property Tax Consultant?
Dealing with property tax can be a tedious task because property prices change regularly, which ultimately affects the tax rate. It is also time-consuming for people who own multiple properties. Therefore, it doesn’t hurt to talk to an expert. Here are just a few major benefits of hiring property tax consultants in Atlanta:
1. Litigation Expert
If you’ve read the guidelines, it becomes apparent that a property tax consultant can do a pretty good job taking our case to the court. They’re good because the litigation requires us to go through complex administrative procedures and red-tape. Property consultants in Atlanta are well versed in the local tax code, which enables them to prepare a strong case.
2. Experience Counts
Did you know that there are several methods to conduct tax assessments? These methods include income approach, cost market approach, market-sales approach, and related techniques. Since tax assessors can use any of these methods or a combination of these, only seasoned tax professionals can identify such details. Hence, it pays to let property tax consultants take care of the complicated process while we focus on our jobs.
3. Increased Efficiency
Property tax does not include residential properties only. Many of us own commercial properties, which require utmost due diligence. Hiring property tax consultants in Atlanta will certainly ease our burden because these professionals can take care of property tax on any type of dwelling. For instance, they will prepare tax estimates, file claims, review appraised values, appear for appraisal hearings, and ensure that we get every break you deserve.
4. More Savings
Some of us can fill our own paperwork and follow up with the local authorities. In that case, there is no need to hire someone else to do the job. However, tax professionals can help us save thousands of dollars because it’s not as easy as filling a couple of papers and doing follow-ups.
If we’re serious about savings, only knowledgeable tax professionals can ensure that we get the maximum write-offs that are available for your property. After all, it is worth consulting someone aware of all the nitty-gritty of tax laws and hidden clauses.
How to Choose the Right Property Tax Consultant?
Now that we have a basic understanding of property tax in Georgia, it’s time to engage a professional who can work with us to reduce the tax. Remember these important points when selecting the right property tax consultant:
Reputation Matters
Filing property tax requires precise information and attention to detail. Therefore, never put tax matters in the hands of a novice. Before going out, we should do our part by researching reputable and experienced consultants in our area. While our family and friends can be a good starting point, never underestimate the power of the Internet in finding the right consultant.
Browse the local listings and carefully evaluate client reviews. It is also important to look at the website of Better Business Bureau regarding any complaints. If everything looks OK, visit the website for important clues about the experience, consultant bio, customer testimonials, and past cases.
Track Record
Try to find someone who can show you their track record. A lot of times, we overlook the importance of a good track record when relying on a single testimony by a family member or a friend. While friends can be trusted, there is no way to tell if our experience will be similar to that of our friends.
Don’t just rely on the Internet or personal contacts to give you insight into past success. It is easy for anyone to design a feature-rich website and paint a rosy picture of their business. Before forging a partnership, visit them personally to discuss your goals and review similar cases to avoid any kind of disappointment.
Fee Structure
Not understanding the fee structure often results in a negative vibe. This is particularly apparent by hundreds of online reviews where customers fret about ambiguous payment terms. One way to ensure transparency is to ask the consultant to put everything in writing.
It is important to note that property tax consultants in Atlanta use a variety of fee structures. Whereas some charge a fixed rate, others prefer contingency fees. The contingency fees can vary according to the terms of the agreement. For instance, 10% of net savings is different from 10% of gross tax savings. Consequently, it helps to clarify any misunderstood terms before signing the paper.
Depending on the nature of work, some property tax advisors in Atlanta will only charge their clients if the case is successful. While this may seem the best option, it can backfire if the resulting fee is very high. Instead, we should be more concerned about the rate of success because favorable results will likely compensate us irrespective of the fee structure.
Service & Facilities
Besides experience and skills, keep an eye on the type of services offered and other business metrics. Remember to select someone who can meet your specific goals. If someone is experienced, it doesn’t mean that they can handle every aspect of property tax.
To get a better idea, review important business metrics such as appeal success rate, average market value reduction, business skills, and types of industries they work with. Owners of multiple properties should only consider hiring property tax consultants who have the capacity to handle multiple properties without overburdening themselves.
Availability
There are hundreds of property tax consultants in Atlanta and surrounding areas. Not all of them can offer customer-friendly service. Our property tax consultant should treat us like a family, which means that they should be available for us during normal business hours. If they’re busy, there should be someone to talk to or we should get a prompt call back.
On the same note, we shouldn’t expect them to be available 24 hours. Most reputable tax professionals lead a busy life and it doesn’t make sense to call them when local tax offices are closed. In fact, our decision should be based on our gut feeling during the initial meetups. At least, we can all guess if the other party is genuinely interested in our business or they’re just trying to make money.
Most importantly, you need to take everything with a pinch of salt because property tax is not to be dealt with carelessly. Pay attention to our guidelines and make sure to check everything we’ve told you. At the end of the day, you will be glad that you did.
