FREQUENTLY ASKED QUESTIONS
Property tax is an ad valorem tax based upon the value of property, both real and personal. Real property is defined as land and generally anything that is erected, growing, or affixed to the land. Personal property is boats, airplanes, business inventory, and any equipment, furniture, and fixtures needed to run a business.
Property taxes are charged against the owner of the property of January 1st, and against the property itself if the owner is not known. Property tax returns are to be filed between January 1st and April 1st with the county tax assessor's office.
Fair Market Value
•COST APPROACH: The cost approach uses actual replacement cost of the building, less general depreciation, plus the value of the land.
•MARKET APPROACH: The market approach involves analyzing sales of similar properties to predict the likely selling price of unsold properties.
•INCOME APPROACH: The income approach is used for income-producing properties. It involves capitalizing the net income to arrive at a probable selling price for the property.
Special Assessment Programs
There are special assessment programs available to taxpayers. These special programs include:
Equipment, Machinery, and Fixtures
Tax assessors have access to any public records in order to discover such information.
Homestead, School, Disabled Veterans, and Preferential Agriculture:
Property tax is one of the primary sources of revenue for Coffee County. It is used to fund police and fire services, education, roads, bridges, water, parks, and other county services. The basis for property tax is the fair market value of the property, which is established on January 1 of each year. The tax is levied on the assessment value, which by law is established at 40 percent of fair market value. The amount of tax is determined by the millage rate. (One mill of tax is equal to $1 per $1,000 of assessed value.)
You must file for a homestead exemption in person year round. Current year deadline is March 1. Once you have applied for an exemption, you do not need to reapply unless you move to another location.
You may be eligible for conservation use or preferential agricultural assessment exemption if you are in good faith agricultural/forest production. This would include; producing plants, trees, fowl or animals, or the production of aquaculture, horticulture, floriculture, forestry, dairy, livestock, poultry and apiarian products.
With both programs, you enter into a 10 year covenant with Coffee County whereby you agree to continue your property in agricultural or forestry production. Agricultural preferential assessment generally provides a 25 percent advantage over fair market value. Conservation use can offer significant savings, in some cases greater than 50 percent of fair market value.
After the assessors establish a new value on a piece of property, the tax payer is sent a assessment notice. The assessment informs you of the new proposed valuation of your property. You have 45 days to appeal the new valuation if you feel its incorrect. The appeal must be filed in writing. Late appeals are invalid.
Basis for appeal
After you have given careful consideration to the value placed on your property and if you feel its incorrect, your appeal should be based on one of the following areas of appeal:
•TAXABILITY: Is the property taxable or does it qualify for exempt status?
•UNIFORMITY: Does the property value compare with the value of similar properties?
•VALUE: Is the property value too high or too low?
When you file an appeal, the Board of Tax Assessors reviews it and determines whether a change in the valuation is warranted. If no change is made, it will then go to the next level of appeal, the Board of Equalization.
The Board of Equalization is a independent three-person board appointed by the Coffee County Grand Jury. Its specific function is to hear unresolved appeals from taxpayers. After hearing both the assessors and the taxpayer's position, the Board of Equalization renders a decision on the valuation.
If either side disagrees with the decision of the Board of Equalization, the taxpayer or the assessor may proceed to the next level of appeal, Coffee County Superior Court.
The current millage rate, 22.560, was established in 2005. This means $22.56 per $1,000 of assessed value in Coffee County. This millage applies county wide. (The city has no millage rate.)
The millage rate for 2005 will be set around August 1. The tax rate, or millage, is set annually by the Coffee County Board of Commissioners and by the Board of Education. A tax rate of one mill represents a tax liability of one dollar per $1,000 of assessed value.