Is the Georgia Homestead Exemption being eliminated? I’ve been getting that question a lot lately from Smyrna Vinings homeowners and home buyers. Seems like a lot of people keep saying that the homestead exemption has been eliminated. Maybe that’s why everyone is asking about it?
But before we answer that, let’s take a step back and explain the Georgia Homestead Exemption.
The Georgia Homestead Exemption provides a reduction from both city and county property taxes for homeowners. In Cobb County, the homestead exemption may be filed for at any time of the year once you purchase your home. You only have to file once for the life of your ownership in the home and the exemption will take effect the following year.
If you’ve ever looked at your property tax bill, the homestead exemption reduces the gross assessed value of your home by $10,000, resulting in the net assessed value, which is then multiplied by the local millage rate to come up with your property taxes.
Now to answer the initial question, the homestead exemption has not been eliminated.
However, there is another credit to your property taxes that the state of Georgia has provided, called the Homeowner’s Tax Relief Grant. This credit was actually funded by the state of Georgia and due to declining state revenues, the state is not funding this credit in 2009.
So while the homestead exemption has not been eliminated, your property tax bill will increase an estimated $200-$300 depending on property values. According to legislation passed this year, the grant will only be made available if state revenues grow at least three percent plus the rate of inflation.
If you have more questions related to being a Smyrna Vinings homeowner or Smyrna Vinings home buyer, be sure to contact us and we’ll be glad to give you the right answers.
Hi there,
My wife and I are trying to buy a short sale in vinings and due to all the parties involved we were unable to close before the end of 2009. It is my understanding that since we will not own the home on January 1, 2010 that we can not “qualify” for homestead exemption for 2010. Is that correct?
Thanks!
Chris
Chris,
Excellent question and you are correct, but it won’t have a huge impact in 2010. The homestead exemption takes effect in the year after you file it and you can’t file until you’ve closed on your new home. The homestead exemption will reduce your property taxes in Vinings by about $300. Once you’ve received your recorded deed back from the closing attorney, go ahead and file for the homestead exemption and it will take effect next year. The homestead exemption is generally worth more as the State used to provide an additional credit called the State Homeowner Relief Credit has been suspended. This credit was also applied to homestead properties and is planned to return when state revenues increase in the future. The other value of the homestead exemption is that it increases in value as your home’s value increases in the future, which is where the real value comes from for the homestead exemption.
One other thing you may want to consider is appealing your property tax assessment next year depending upon the assessed value compared to how much you paid for the home and other similar comparable sales in the area.
Hope that helps and good luck getting your short sale closed.
Aaron Hofmann
Keller Williams Realty Cityside