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ATLANTA — Georgia Gov. Brian Kemp in April signed a bill to limit large annual property tax increases that have plagued homeowners in Metro Atlanta suburbs for the better part of a decade.

While the legislation should help property owners in counties like Fulton, DeKalb and Forsyth, it will also quietly remove what some deem a loophole that has benefitted taxpayers who know the ins and outs of the property assessment process. The coming days and weeks will likely represent the last chance homeowners have to lock in their property values without much of a fight.

Set to be enacted prior to the 2025 tax season, House Bill 581 will enable counties to limit the appreciation of property values to no more than the current rate of inflation. The new law comes on the heels of significant annual surges in taxable property values in most every county in North Georgia and parts of Metro Atlanta.

However, the bill will also soon prevent homeowners from taking advantage of the current system where simply appealing a property tax assessment will freeze the appraisal value for the current and two succeeding years, no matter if they actually win their case. Starting in 2025, property owners will need an appeal to be successful and result in a reduction in the value of their property to lock in the three-year assessment – something easier said than done.

The numbers tell the story

An eye-popping number of property assessment appeals are filed in Metro Atlanta counties every year. In DeKalb County, roughly 19,000 appeals were filed for 2023, according to the Assessor’s Office. More than 16,000 of those were for residential properties. Meanwhile, Fulton County saw more than 30,000 appeals in 2023. Forsyth provided a list of around 4,000 unnamed appeals for last year.

The legislation “should cut down on the number of people that appeal things without even knowing if the value is wrong,” according to one assessor who spoke on the condition of anonymity. The same property owners have been appealing every three years no matter what, he said, noting that there are neighbors in his county with similar properties who have significantly different tax assessments, all because one homeowner pauses the process through appeals while the other cuts a check without asking questions.

In theory, the assessments should even out after the freeze is over, but that rarely happens, he said.

District 3 Fulton County Commissioner Dana Barrett offered a similar perspective late last year, suggesting that the powers that be have been wary to implement multi-year increases in a single assessment, especially considering another appeal would surely be waiting.

Data shows 5 to 10 percent of residential appeals have resulted in a reduced assessment in a given year, the assessor said. That is no accident.

Jody Campbell, a partner at law firm Blum andamp; Campbell which specializes in real estate law says that due to the sheer volume they’re facing, appeals committees haven’t the bandwidth or time to critically react to the evidence put before them, or the ability to dive deep on comparable sales

“It’s easier to rubber stamp what the assessor tells them,” Campbell said.

The Board of Equalization, the panel that hears most property assessment appeals, is not always made up of real estate professionals or those who work in tangential industries. In fact, committee members are only required to be property owners who have completed 40 hours of certified training and earned their high school diploma. Property visits occur but anecdotal evidence suggests they’re more of a rarity, according to Campbell. Hearings in front of Boards of Equalization run roughly 5 to 7 minutes, and live testimony – like that from a third-party appraiser – is typically not allowed or considered, he said.

“You can walk in with the most scientific presentation – a lockdown case – and they may just arbitrarily agree with the assessors,” he said. The end result is that 2024 is absolutely the year to appeal if you simply want two additional years with no changes to your appraisal, Campbell said. Otherwise, come next year, you’ll have to convince a committee to approve a reduced assessment to earn those two extra years.

Realities to consider

When deciding whether to move forward with an appeal, it’s important to understand the benefits – or maybe lack thereof – beyond the two-year freeze on assessment increases. The financial ramifications can be much less impactful than most people assume for typical homeowners. A $50,000 reduction in property value results in roughly $450 in tax savings in a given year, according to Campbell.

The 2023 numbers provided by Forsyth County show that a “successful” appeal can often result in no more than pocket change. One unidentified property that was originally assessed at more than $1.7 million saw its valuation drop by exactly $100 following the appeals process, meaning the property owner saved just pennies in taxes. However, another Forsyth property initially valued at roughly $2.88 million fell to less than $1.3 million after an appeal, resulting in an enormous tax savings.

The appeals process is also lengthy, even if it isn’t necessarily arduous. Appeals are usually finalized between four and 10 months from the initial paperwork. The board of tax assessors can also increase the value of a property if an on-site inspection reveals significant additions or improvements to the property of which the board wasn’t already aware.

That said, you can choose to be billed at 85 percent of the initial assessment while your appeal is being resolved, which can be a major benefit for property owners with extremely large initial assessments, particularly owners of commercial properties.

The time to act is now

While each county has slightly different rules, the main pillars of the appeals process are the same across the state. You’ll have 45 days from the date on the Notice of Assessment to file an appeal. DeKalb County said its notices were mailed at the end of May, suggesting a mid-July deadline. Forsyth County sent notices out on May 24. Appeals for Fulton County must be postmarked on or before the last date to file, which is clearly marked on every individual notice of assessment.

While you don’t need to see a reduction in property value under the current law to lock in property values, you do need to complete the appeals process. That means attending the Board of Equalization hearing or having someone else attend on your behalf.

But come next year, you’ll need to actually find a way to convince a committee or arbiter to approve a reduction to your assessment to see any benefits.