“The millage rate is the most important factor in determining property taxes,” stated Jim Heard, chairman of the Lincoln County Board of Tax Assessors.

Although this is Heard’s first year as chairman, he has served on the board for the past 10 years.

In comments made at the January 17 meeting of the board to answer questions and clear up misunderstandings, Heard spoke on the nature and scope of the group’s duties.

At the outset, he said, “Our governing bodies set their respective budgets. Then, they look at the funding they will receive from state and federal sources, along with sales tax. The gap between these monies and the budget is what property owners have to fill.

“Local officials apply the millage rate to the tax digest to see what it will take to fill the gap. We could lower or raise appraisal values, but the governing bodies are still sitting there with a void to fill with monies they can’t obtain from any other source but us. So they apply whatever millage rate is needed to the tax digest and get the funds from the taxpayers.”

In other comments, Heard said, “All we do is appraise property. We don’t devise budgets or apply millage rates – we only appraise property.

“If we want tax relief, the budget has to be cut or additional revenue sources have to come into play to shrink the gap. I’m all for tax relief – I can promise you that.”

He indicted that the quickest way to reduce taxes is to lower the millage rate.

The board chairman went on to point out that one third of property tax revenues is used to help operate the county and two thirds goes toward running the school system.

“If you want tax relief, you can’t get it here because all we do is appraise property – that’s all we do. Those who are worried about taxes and coming to this board may be coming to the wrong board.

“Still, the county and the school board have to have money to operate with – they just do,” Heard continued. “Even though we pay two thirds more to the school system than the county, we voted on all that. Also, we elect board members, so we have some voice in how things are transpiring.”

Concerning the appraisal of property, Heard said, “Our struggle is to apply the rules, regulations, and the law to subdivisions that have ‘gone under’ and been involved in foreclosure or bank sales.”

Referring to the escalated sale of lakefront property that occurred three or four years ago, the board chairman explained that the new land owners sold or “dumped” the property to get back what money they could.

“You’re looking at a $250,000 lot. Prices start falling and the cost of lots drops to $126,000 or even $70,000. How do we determine fair market value in these neighborhoods?”

According to Kenny Adair, chief tax appraiser for Lincoln County, “Each subdivision is evaluated on its own merits. The fair market value in the new subdivisions has dropped 50 percent or more from the original value due to the fact that several years ago, developers were bailing out for 50 percent of what comparable lots were initially selling for.”

He then pointed out that Stillwater Coves is different from the other subdivisions. “It was not that difficult to assess property in Stillwater Coves. Due to bank sales, fair market value was obvious. This subdivision is also different in that a property owner cannot get a building permit because there is no infrastructure.”

As for the other “new” subdivisions, it is difficult to determine fair market value when there is a lack of bank or individual sales.

“Overall, there has been very little activity over the last two or three years,” stated Adair. “A lot of these subdivisions seem to be in a holding pattern.

“Still, the county is better off than it was ‘predevelopment’. When subdivisions were nothing but timberland, the fair market value of an acre of land ranged from $800 to $1,000. Now, the fair market value of that same acre of land runs from $20,000 to $125,000.”

Also during the meeting, Heard told those present that members of the board of assessors do not appraise property. “Kenny Adair is the professional appraiser. He’s been at it 20 years. He is one of the best rural county appraisers in the state of Georgia, and we have the numbers to prove it.”

Ratio audits, conducted by the Georgia Department of Revenue, have shown that Lincoln County has been in compliance with state rules and regulations since 2002.

The sales ratio is the calculation of assessed value compared to sales price.

Heard then addressed the appeals filed with the board of tax assessors.

“Appeals, including those heard tonight, have left the tax assessors’ office and been sent to the Lincoln County Board of Equalization, so comments need to be directed toward this group. The next step is superior court.

“If an appeal goes to court, it’s perfectly alright with me and the other members of the board. There we will discover if we’ve done anything wrong or if they just want to change the way we do things. We will do whatever they tell us. We have no problem with that.”

He then encouraged members of the community to visit the tax assessors’ office and review their property record card to ensure that the information is correct and to determine what exemptions they might be eligible to obtain.

“Although most people don’t, property values should be declared between January 1 and April 1 of each year – at least when property has just been purchased. If an individual doesn’t come in during that time frame, the assumption is that there has been no change in value.

“We accept what is on the books and proceed with the assessment unless we deem that property has increased or decreased in value. The property owner will be notified of the valuation, and he can file an appeal if necessary.”

In addition to updating their property cards, Heard indicated that local residents may also apply for five homestead exemptions at the tax assessors’ office, if eligible. They are:

(1) Standard Homestead Exemption. This exemption is available to all homeowners who otherwise qualify by ownership and residency requirements, and it is an amount equal to $2,000, which is deducted from the 40-percent assessed value of the homestead property.

The exemption does not apply to the portion of the mill rate levied to retire bond indebtedness.

(2) Standard Elderly School Tax Homestead Exemption. This is an increased homestead exemption for homeowners 62 and older, where the net income of the applicant and his spouse does not exceed $10,000 for the preceding year. A portion of Social Security income and certain retirement income are excluded from the calculation of the income threshold.

The exemption applies to school taxes, including taxes levied for bond indebtedness. The amount is up to $10,000 deducted from the 40-percent assessed value of the homestead property.

(3) Standard Elderly General Homestead Exemption . This exemption is available to homeowners, who otherwise qualify and who are 65 years of age and older, where the net income of the applicant and his spouse does not exceed $10,000 for the previous year. A portion of Social Security income and certain retirement income are excluded from the calculation of the income threshold.

The exemption, which is in an amount up to $4,000 deducted from the 40-percent assessed value of the homestead property, applies to county, school, and states taxes. It does not apply to taxes levied to retire bond indebtedness.

(4) Homestead Exemption for Senior Citizens. This is an amount equal to the actual levy for state ad valorem tax purposes on the residence and no more than 10 contiguous acres of land for qualified applicants age 65 and older.

(5) Disabled Veteran Homestead Exemption. This exemption is available to certain disabled veterans or to the ‘un-remarried’ spouse or minor children in an amount up to $50,000 deducted from the 40-percent assessed value of the homestead property.

Brochures on the various tax exemptions are available at the office of tax assessors and at the Lincoln County Tax Commissioner’s Office. Office hours are 8 a.m. to 5 p.m., Monday through Friday.

It was reported that two senior citizens dropped by the tax assessor’s office that very day, and the determination was made that one had missed out on an exemption for 12 years and the other, 20 years.

“I recommend that citizens look into these exemptions,” said Heard. “There are some things out there that are available to ease the financial strain.

“People need to come in, update their property record cards, and ask questions. Kenny Adair can clear up a lot of things, and if you’re still not satisfied, come to the board of asses- sors.”

In conclusion, Heard discussed the action taken by the Lincoln County Board of Commissioners to invite the Georgia Department of Revenue to send in a performance review board to ensure that the practices of the local tax assessor’s office meet state standards.

“Wade Johnson (commission chairman) told me the county had requested a review of the board of assessors to see if we were focused enough and doing what we were supposed to. I said, ‘What a coincidence. Kenny and I have already had this conversation. This is what we’ve been trying to get done.’”

Heard went on to say, “Both Kenny and the board of assessors wholeheartedly support this. There have been some changes in the law, and if we’re not doing our job correctly or if we’re not looking at the information properly, then we need to change things.

“We need to get things to the point where our work holds up under scrutiny by the department of revenue and if it comes to that, by the courts.”

For more information, contact the tax assessor’s office at 706-359-5502.