Taxes (Atlanta, Marietta, Kennesaw: bank owned, appointed, sales)

[ship]

What are the approximate property taxes like in Marietta and Kennesaw? How are the state taxes? I looked at the Dept of Revenue website and it was confusing. I would like an estimate.
Thanks

[neil0311]

Originally Posted by ship

What are the approximate property taxes like in Marietta and Kennesaw? How are the state taxes? I looked at the Dept of Revenue website and it was confusing. I would like an estimate.
Thanks

Depends if you're within the city limits or in unicorporated Cobb County. Here is the official tax website for Cobb County and the rates.

Cobb County

Here is info on how the bill is derived:

The millage rate is a determining factor in the calculation of your taxes. (A mill is 1/10 of 1 cent or $1 per $1,000 of assessed value.) The millage rate multiplied by the assessed value determines the amount of taxes you owe. All property taxes are calculated in the same way for home, auto, and personal property.

The millage rate for state taxes is set at .25 mills by state law. The county Board of Commissioners sets the millage rate for county taxes, the county Board of Education sets the millage rate for county school taxes and the city authorities determine the rate for city taxes.

The county Board of Tax Assessors, which is appointed by the county Board of Commissioners, assesses all property for tax purposes. Assessments are by law based upon 40% of the fair market value as of January 1 each year. This assessment is multiplied by the millage rate. If there is an increase in the assessment or the millage rate then there may be an increase in property taxes.

http://www.cobbtax.org/forms/htmlfra...m&LMparent=189

[Herr_Brush]

1% of market value is a reasonable estimate, e.g. $3000 annual property tax on a $300,000 house.

If the millage were exactly 25 and there were no other factors, it would be exactly 1% (40% of 25/1000). Most millage rates are somewhat higher than 25, but you also get homestead exemption, so it may end up a little under 1% for cheap houses and greater than 1% for expensive houses.

The assessed value can also be wildly different from reality, but usually when you buy a house the assessed value is reset to what you paid for it.

[neil0311]

Originally Posted by Herr_Brush

The assessed value can also be wildly different from reality, but usually when you buy a house the assessed value is reset to what you paid for it.

That was not the case in Cobb County. The value was not reset when I bought the house to the purchase price, and I needed to appeal and provide accurate market data and make a case to the county to lower the assessment. They then adjusted to the correct market value (at that point). They tie the assessment to the market reality as it exists and as the homeowner provides backup data to prove. A purchase price is not automatically the correct value. Some people pay more than they should for a home, and others are able to get something way under market (such as a bank owned property when paying cash).

The biggest problem right now is that values are fluctuating wildly as a reaction to the market.

[janet45]

It is insane. I am amazed at the property tax fluctuations. Ours is crazy and our neighbor with a lot and house twice the size has half the tax. Makes no sense to us at all.

[yikes91]

In CA we have Prop 13 which doesn't allow your property taxes to go up more than the value you originally bought the home for. Makes it nice to have fairly consistent taxes. Does GA have anything like this? Or do property taxes increase every year assuming the market does well?

[rcsteiner]

Originally Posted by yikes91

In CA we have Prop 13 which doesn't allow your property taxes to go up more than the value you originally bought the home for. Makes it nice to have fairly consistent taxes. Does GA have anything like this? Or do property taxes increase every year assuming the market does well?

It depends on the county. Cobb County, for example, only seems to asses my property every three years or so. From what I've seen, though, their assessed value seems fair.

I don't know if there is a limit to how much they can increase your property taxes, but it would be nice to be concerned about that again.

[cwkimbro]

Originally Posted by rcsteiner

It depends on the county. Cobb County, for example, only seems to asses my property every three years or so. From what I've seen, though, their assessed value seems fair.

I don't know if there is a limit to how much they can increase your property taxes, but it would be nice to be concerned about that again.

rcsteiner is giving you the the correct general jist for what is common in the atlanta area. Gwinnett is the same way.

I do want to add one caveat.... This caveat leads to why so many people think the newer assessments are fair and unfair.

When the housing bubble burst there were cases where there wasn't adaquete data available to reassess a whole neighborhood during a certain time period, because they are based on the actual sales prices and sometimes ignores the sales prices of a distressed sale vs. a normal used home sale.

So there was (and in a few cases... still is) a time period where people pretty much understood they couldn't sell a home at price $X, but the county assessors didn't have adequate data for particular neighborhoods showing homes sold at a lower price $Y to reassess. It is admittedly a weakness in the system. But... typically works itself out over several years.

The system doesn't respond quickly to big market changes, but it responds well over time. This means properties go overvalued when there is a sudden downward shift in value and they go undervalued when there is a sudden upward shift in value

An AJC article touches on this under a subhead - Mass appraisals

Atlanta property taxes: Values fall faster than tax bills *| ajc.com

Another article gives a quick summary of changes in different counties

Atlanta property taxes: How counties responded as values shifted *| ajc.com

[Ultrarunner]

Originally Posted by yikes91

In CA we have Prop 13 which doesn't allow your property taxes to go up more than the value you originally bought the home for. Makes it nice to have fairly consistent taxes. Does GA have anything like this? Or do property taxes increase every year assuming the market does well?

Prop 13 add predictability since tax base maximum annual increase is 2% plus voter approved special assessments.