A commercial property in Clayton County has a fair market value of $500,000 and qualifies for a manufacturing exemption that reduces its assessed value by 25%. Using Georgia's 40% assessment ratio, and given millage rates of 15 mills (county), 6 mills (city), and 20 mills (school district), what is the property's annual tax liability after the exemption?
Correct Answer
B) $6,150
Step 1: Assessed value = $500,000 × 40% = $200,000. Step 2: The 25% manufacturing exemption reduces assessed value by $50,000 ($200,000 × 25%), leaving a taxable assessed value of $150,000. Step 3: Total millage = 15 + 6 + 20 = 41 mills. Step 4: Tax = $150,000 × (41 ÷ 1,000) = $150,000 × 0.041 = $6,150. Under Georgia law (O.C.G.A. § 48-5-7), property is assessed at 40% of fair market value, and qualifying exemptions reduce the assessed value before tax is calculated.
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More Ga Property Tax Questions
A Georgia homeowner's property has a fair market value of $220,000. She does not qualify for any floating homestead exemption and receives only the standard $25,000 homestead exemption (applied to fair market value before the 40% assessment ratio). If the county millage rate is 15 mills, what is her annual property tax?
A Georgia homeowner has been receiving the standard homestead exemption on her primary residence in Atlanta. She sells that home and moves permanently to a property she previously used as a vacation home in Rabun County. What must she do regarding her homestead exemption?
A seller paid the full annual property taxes of $3,650 on January 1st for the entire calendar year. The closing takes place on September 15th, and the seller is responsible for the day of closing. Using the 365-day method, what credit does the seller receive at closing for the buyer's share of the taxes?
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Previous Question
A buyer closes on a home in Fulton County on June 1st and intends to use it as a primary residence. The previous owner had a homestead exemption on the property. For which tax year can the buyer first receive a homestead exemption on this property?
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A property owner in a Georgia county that has authorized installment tax payments receives a property tax bill of $3,200 in October. Under the county's installment plan authorized by O.C.G.A. § 48-5-23, how may the owner pay?