Home Buying in 30308>Question Details

Matt Ward, Home Buyer in 30306

Question on property taxes

Asked by Matt Ward, 30306 Thu May 22, 2008

We are in the process of buying a $500K property. The 2007 property tax assessment shows a "temporary assessment" of $169K. What is a "temporary assessment"? Will the sale of the property automatically trigger a reassessment? Is there a maximum that the property tax can go up in any one year?

Thanks!

Matt.

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I am not sure what the temporary assessment refers to? But, your property assessment will go up to the price that you paid for the property since you have established a new "market" value for the home. Often, this happens the year after the sales closes. Don't let anyone try to convince you otherwise.

There is no cap on increases to property value. The City of Atlanta and Fulton County can decide to assess your home at any level they want. Currently legislation is being considered that would cap increases in property taxes to the lesser of 3% per year or the rate of inflation. However, Mayor Franklin is pushing to increase property taxes in 2008-09 to pay for budget shortfalls. It seems like there is a 50/50 chance of this succeeding.

Regardless, aggressively manage your tax assessment and take every opportunity to appeal it if appropriate.
2 votes Thank Flag Link Thu May 22, 2008
Matt, A "temporary assessment" is given to a property when a homeowner is in the process of challenging the assessors valuation. Normally, the tax amount during this appeal process is at 85% of the current year assessment... (and the appealing owner agrees to pay the difference if the appeal is not granted). That's a huge difference between the 'temp assessment' and the market value - is it new construction? and the temp assessment is based on the previous tear-down?

You might want to have your REALTOR pull tax comps for nearby properties to get a 'real' assessment of what the taxes may be... you may close at the 'reduced' rate and be in for a HUGE suprise next year.

As mentioned, there is not a percentage cap of the amount taxes can be increased in a year. But, the tax assessor is not supposed to be 'chasing the sale'... there's supposed to be an element of neighborhood uniformity.

Best Regards,

Ramiro Garcia
http://dwellintown.com
Web Reference: http://www.DweLLintown.com
1 vote Thank Flag Link Fri Jun 6, 2008
Is the house you are buying new construction? If so, it may be a value for 2007 based upon partial completion of the home. Not enough information to answer with any certainty, but there is a real good chance that in 2008, if you are buying a new home, your taxes are going to be adjusted to reflect a completed home.
1 vote Thank Flag Link Thu May 29, 2008
Pamela, what you are referring to is a Special Assessment.

Matt, there is no maximum that a property tax can go up in any given year. They make their assessment based on what they perceive to be fair market value. This market is making them nervous because values are going down and homeowners are fighting their tax bills because of this. If this is not a new home you are buying, my guess is that the value that bases your taxes was termporarily reduces for some reason. You can call the the counties tax assessors office to ask them what this means and I am sure that they will share with you. This will be very valuable information for you. Hopefully, you will share this information back with us. It is always great to learn something new!
Web Reference: http://www.HomesByLorie.com
1 vote Thank Flag Link Thu May 22, 2008
A temporary assessment could mean an area improvement that only benefits a small segment of the community like sidewalks in a small subdivsion or street lights. When the improvement is paid off the assessment goes away ordinarily. There is no maximum but the majority of taxpayers must agree to any such assessment up front. A buyer of your property will have to assume this tax if it is during the assessment period.
1 vote Thank Flag Link Thu May 22, 2008
Check with the county tax commissioner regarding rate increases.
Also you can check a properties tax value at the county tax assurors web site
I temporary tax base sounds like a new construction
1 vote Thank Flag Link Thu May 22, 2008
go to http://www.FairTaxAppraiser.com and get some answers.
0 votes Thank Flag Link Fri Dec 11, 2009
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