A homeowner's property was assessed at $150,000 in the base year when the floating homestead exemption was established. The current assessment is $190,000, and the standard homestead exemption is $20,000. How much additional taxable value would the homeowner face if the floating exemption no longer applied, compared to retaining it?
Correct Answer
B) $40,000
With the floating homestead exemption, the assessed value is frozen at the base year level of $150,000 for tax purposes. Taxable value with floating exemption = $150,000 (frozen assessment) - $20,000 (standard exemption) = $130,000. Without the floating exemption, the current assessment applies: $190,000 - $20,000 = $170,000 taxable value. The difference is $170,000 - $130,000 = $40,000 in additional taxable value. This represents the protective benefit the floating exemption provides against the $40,000 increase in assessed value ($190,000 - $150,000).
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More Ga Property Tax Questions
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New agent Steve is working with clients, the Wilson family, who are relocating from Florida to Georgia. They're purchasing a home in Hall County and ask about the difference between their previous state's homestead exemption and Georgia's. What key feature of Georgia's system should Steve highlight?
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