Appeal filed as BOC and BOE discuss Tax Assessors issue

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GILMER COUNTY, Ga. – Both the BOC’s special meeting and the BOE’s monthly work session saw discussion after falling median sales ratios in the Tax Assessors Office could set the county up for another state consent order and penalties in fees.

Chief Appraiser, Theresa Gooch stated that if the county’s median falls below a 38, the first consequence comes as the possibility of losing some public utility money or tax revenue. This number comes from the state’s Department of Audits and Accounts (DOAA) studies that occur annually. This means the Audit will look at samples of sales in the year and look at the sale value and compare that to what the county Tax Assessors assessed the value at. Since the state expects the assessors to set there evaluations at 40 percent of the property’s value. The optimum ratio, according to the state, is set between 38 and 42 percent so that there is no major variations.

However, to “pass” the audit, a term presented by BOE Finance Director Trina Penland, the assessed evaluations must fall between 36 percent and 44 percent, allowing for a 4 percent margin of error on either side as some might say. The report of the test samples for 2021 in Gilmer County fell to 35.88 percent, according to Penland’s report.

The study lags, however, according to Gooch who explained that the Department uses 2021 sales to set 2021 values while the county must use 2020 sales to anticipate and set expected 2021 values. The time lag also comes as the county has to have its values set by January 1, 2021. The state, however, comes later as Gooch said in the August 2022 meeting that the county just received the study results. Since the county’s and the states values are at odds, the discrepancy arises. The difference is so stark this year with the rising inflation and market values in just the course of one year.

There is no immediate consequence this year as the county is not under an official review year, Gooch said that will take place next year with regards to the 2022 assessments currently in their final stages. The Tax Assessors will use this information to set the expected 2023 values, but the state will wait until the end of 2023 to set those values based on actual sales.

With the current issue, she urged the county to formally file an appeal to have their concerns on record that Gilmer is “not happy with the findings.” Additionally, Gooch noted that the county could rise up again and make the requirement by next year’s review, but she has concerns if the state continues studies with the time difference allowing major influences to change market values drastically between the county’s anticipatory values from 2022 and the states actuals from 2023.

Not meeting the state required study median causes a fine, County Chairman Charlie Paris noted $174,000. The option is going under a consent order. Paris also noted that the last time the county was under a consent order, “it cost us more than paying the fine.”

In addition to those, Penland reported to the BOE that the Tax Assessors will also have to change their ratios for the digest in coming years, further reducing the money collected for both the Board of Education and the Board of Commissioners budgets.

Gilmer County is not the only county going through this issue currently as Penland showed reports from 2019, 2020, and 2021 audits with more and more counties falling out of compliance each year. In the 2021, the majority of North Georgia along with counties all over the state are facing this same issue of being out of compliance.

Gooch reported that the last time Gilmer County was out of compliance, with a median percentage below 36, was “prior to 2010” and the last time it was out of optimal range, with a median percentage below 38, was 2013.

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