Navigating Property Taxes: Unveiling Homestead Exemptions and Tax Relief Grants
-This is a transcript from Go Gaddis Radio to listen to the episode click here-> https://on.soundcloud.com/WbZR8
You're listening to Go Gaddis real estate radio right here on AM 920. The Answer in this segment of the show, what are homestead exemptions? How do property taxes work? And believe it or not. Every homeowner in the state of Georgia is getting a gift. I probably shouldn't call it a gift, but a gift from the state of Georgia in the form of the 2023 Georgia Property Tax Relief Grant.
You probably noticed it on your tax bill. My name is Cleve Gaddis. You're listening to Go Gaddis. Real Estate Radio. We've been on the air in Metro Atlanta for 10 years now. 10 and a half years. We've done probably, uh, uh,
550 radio shows. And we love the fact that you would invest your time on a Saturday to listen to this show. And the show has a very specific purpose. Almost everybody is touched at some point in time by real estate. Whether it's through a purchase, whether it's through a sale. Renting something, uh, owning something and managing it as a landlord, whether you just live in an apartment, we're touched by real estate and real estate touches our lives in really very significant ways.
Some of my most important memories as a child. are in the places where I lived with my mother and my father and my brother and my sister. So real estate is important and when we're buying something or selling something that is so important that is so significant from an investment standpoint. We need to make sure we have all of the facts before we move forward.
So, I don't need anybody to tell me what I need to do. I can figure out as an adult what I need to do on my own, and I'm pretty sure that's the same for you. But you do need to have somebody give you all of the facts. And it is not unusual for me to talk to home sellers, home buyers, not those who work with...
My agents, or me, but those who work with other agents, or sometimes with no agent at all. And I hear one horror story after another, after another, after another, after another. About things they did not know before they sold their home, or things they did not know before they bought. a new home and it's a shame and we don't like it and our goal with this radio show is to help you know everything you need to know before you make any important decisions.
In other words, we don't want you learning anything at closing or after that you should have learned before. If you are interested in saving a bit of money on your property taxes and are curious to know how, this segment is for you. We're going to talk a little bit about property taxes, how do they work, and then what are the savings options that are available to you in metro Atlanta counties and in the state of Georgia.
Carlos in Canton wrote in and said, What, what does it mean? Um, What does that mean? Oh, interesting. I got, I received a letter from your team reminding me to apply for Homestead Exemption. Didn't see the first sentence there. What does that mean? Are there other beneficial exemptions for someone who is retired?
We live in Forsyth County. So, uh, Forsyth County and I believe Cobb County. I believe Henry County. Don't quote me on this. But those are some of the better counties to live in. If you are a senior, if you're retired, I'm assuming Carlos says he's retired. I'm assuming that that may mean he's. over 65 years old because in Forsyth County, regardless of your income, you are entitled to the senior exemption when you turn 65 years old and only one person on title to the property needs to be 65 in Gwinnett County and DeKalb County and Fulton County.
You actually have to qualify. To get the senior exemption by having an income that is at or below a certain level. And I want to say at one time in Fulton County, excuse me, Gwinnett County, it was 30, 000 a year. So certainly have to push your income way down in order to qualify. But are there other beneficial exemptions for someone who is retired?
The answer is yes. First of all, everybody should If you're living in your home, it is your place of principal residence. Everybody should, should apply for homestead exemption. You can apply for homestead exemption anytime after you purchase your home, but let's say for example, you purchased it in July.
Let's say you purchased a home in July of 2023. The exemptions you apply for in July of 2023 wouldn't take effect until January the first of 2024 because the owner of record for a home for the year. is the owner of record on the very first day of the year. So if John Smith was the owner on the first day of the year and Cleve Gaddis became the owner.
In the middle of June of this year, John Smith is the official owner. When I apply for senior exemption, which I wouldn't qualify for yet yet, I'm proud to say I'm several years away from that. But when I apply for the exemptions, and let's just say for me, it would be a typical standard homestead exemption, meaning I get to pay less taxes on my property and you get to pay less taxes on your property because it is our place of principal residence.
So we would file that homestead exemption application and then it would be effective January the 1st of 2024, which means the property taxes I would pay in 2024 would be adjusted for the homestead exemption. You have, um, real, uh, property tax relief for veterans. You have property tax relief for disabled veterans.
You have property tax relief for. The, um, uh, widows, uh, or widowers of deceased veterans. You have all different types of, uh, homestead exemption in your area. If you want more information on what homestead exemption, what exemptions, excuse me, property tax exemptions might be available to you in your area.
Just reach out to us at gogaddisradio. com or call 770 497. 0000 and we will be very happy to review your specific situation. Let's talk just a little bit about property taxes in general. And I get the question all the time, like, how does property taxes work? So the county assesses your property, the county or city.
Sometimes local municipalities will do it. In Fulton County, for example, it's the county that does it all. And the cities use those assessments for the most part. And, uh, the way it works is you have a millage rate. And so, what that means when you look at a rate of X number of mills, 1 mill is equal to 1 of tax per thousand.
Now, in Georgia, the assessed value of a property is always 40 percent of the fair market value. So if a home was worth 500, 000, then the home for Tax purposes, the assessed value would be 40% of $500,000, which according to my calculations would be $200,000. So if your tax bill was one mil, that's $1 per thousand times 200,000 means your tax rate would be $200.
So if you lived in an area where you had. 30 mils on a 200, 000 house and you paid 30 mils in taxes, then you could take 30 times 200. Which is whatever that is, uh, 6, 000, I believe. And that would be the property taxes that would be paid on that particular house. Now, when you apply for homestead exemption, you get a certain amount.
reduced from the assessed value of the property. So it can range from, you know, 10, 000 here to 30, 000 here. But let's just say you had that same 200, 000 property and the the 200, 000 property would receive a 30, 000 reduction if it was homestead exemption. So instead of the property being taxed at the assessed rate of 200, 000, it would be taxed at the rate of 170.
6, 000. If you were curious as to how much money the average homeowner saves by applying for homestead exemption, I would say Ten percent ten to twelve percent eight to ten or eight to ten or twelve percent Off the value of the house if you say well, what is the average senior exemption worth? I would say it's worth half off of your taxes So if you lived in a place and taxes would be six thousand dollars If you have the senior exemption, it could be that your taxes would only be half of that number.
State of Georgia passed a 2023 property tax relief grant earlier this year. It's a one time property tax relief grant. It's a budget proposal by Governor Brian Kemp. It's to refund Or it was, it was a proposal by Brian Kemp, which was passed and designed to refund 950 million in property taxes back to Homestead owners in the amended fiscal year 2023.
This proposal became law when Kemp signed HB House Bill 18 on March 13, 2023. The way it works is simple. Each property owner will receive the tax relief grant in the form of an 18, 000 reduction in the assessed value of the property. Remember the example I just used where we reduce it by 30? Well, in this case, if your property had an assessed value of 200, 000, the fair market value is 500, 000.
If you get the property tax relief grant, then your, uh, property value is reduced to 182, 000. So you're paying taxes on that amount, not the 200, 000. The property tax relief grant only applies to properties claimed as homestead by a Georgia taxpayer. Prior to the April 1st deadline, the property tax relief grant is different from a homestead exemption.
The standard homestead exemption in the state of Georgia is 2, 000. This 2, 000 has already been deducted from the 40%. Property tax relief, you won't receive a separate check as shown on your property tax bill. And if you applied for homestead, After April 1st of 2023, then you are not eligible for the grant.
This segment of the show is brought to you by the law firm of O'Kelley and Sorahan. They're a full service law firm with 26 offices all throughout metro Atlanta. They specialize in residential real estate closings, including home purchases and refinance closings and corporate relocation and also real estate contract review and title insurance matters.
They can be reached by calling 770 497 1880. If you're looking to sell your home anytime in the next six to 12 months, we believe we can put an extra 28, 000 in your pocket. If you're listening and say, that seems too good to be true. I say, try me. Go to gogaddisradio.com, click on 28, 000 more, put in a little information, you'll be on and off of there in 20 or 30 seconds, and I'll reach out to you and discuss how a customized maximum value plan, which people would normally pay 800 for, is free to you, and you can have up to a 15, 000 rehab and repair, rehab and refresh budget, where we put your home in the best showing shape.
possible. Gogaddisradio.com. Click on 28,000 more. We're going to take a break in our next segment in our neighborhood spotlight. We've got Argonne Forest in Atlanta. Also Georgia's damp and wet upcoming winter. What is to be expected and six home improvements that pay off when it comes to resale.
Stick with us. We'll be back.