Ad Valorem Tax Process
Determining Property Tax
Ad valorem tax, more commonly known as property tax, is a large source of revenue for local governments in Georgia. The basis for ad valorem taxation is the fair market value of the property, which is established as of January 1 of each year.
The tax is levied on the assessed value of the property which, by law, is established at 40% of the fair market value unless otherwise specified by law (O.C.G.A. 48-5-7). The amount of tax is determined by the tax rate (mill rate) levied by various entities (one mill is equal to $1 for each $1,000 of assessed value, or .001).
Related Public Officers
Several distinct entities are involved in the ad valorem tax process. They include the following:
- The state revenue commissioner is responsible for examining the tax digests of counties in Georgia in order to determine that property is assessed uniformly and equally between and within the counties (O.C.G.A. 48-5-340). In addition, the state levies ad valorem tax each year in an amount which cannot exceed one-fourth of one mill (.00025).
- The Murray County Board of Tax Assessors, appointed for fixed terms by the county commissioners, is responsible for the appraisal, assessment, and the equalization of all assessments within the county. They notify taxpayers when changes are made to the value of property, receive and review all appeals filed, and ensure that the appeal process proceeds properly. In addition, they approve all exemptions claimed by the taxpayer.
- The Murray County Board of Equalization, appointed by the grand jury, is the body charged by law with hearing and adjudicating administrative appeals to property values and assessments made by the Board of Tax Assessors
- The county commissioner, an elected official, establishes the annual budget for county government operations and levies the mill rate necessary to fund the portion of the budget to be paid for by ad valorem tax.
- The Murray County Board of Education, an elected body, establishes the annual budget for school purposes and adopts the mill rate necessary to fund the portion of the budget to be paid for by ad valorem tax.
- The county tax commissioner, an elected office established by the constitution, is the official responsible for performing all functions related to billing, collecting, accounting for, and disbursing ad valorem taxes collected in this county. The tax commissioner also serves as an agent of the state revenue commissioner for the registration of motor vehicles.