In-person audits to focus on businesses that haven’t been filing returns
Members of the Gilmer County Board of Assessors were split on deciding whether or not to allow hiring an outside company to do personal property auditing on local businesses.
The item was discussed at an Aug. 24 meeting as the board reviewed a preliminary version of the next assessors office budget.
Chief Appraiser Theresa Gooch told board members Bill Logan, Jerry Davis, Gary Engel, Lisa Bradley and John Williamson the company, Traylor Business Services of Kennesaw, can provide experience and knowledge needed to perform in-person personal property audits, which the assessors office staff does not currently do. That knowledge could be useful not only to office employees, some of whom would accompany the Traylor representatives for the in-person audit process, but also business owners, she added.
“These are going to be more in-depth audits. We will focus on businesses that haven’t been filing returns or complying with the audits and start with that,” Gooch said. “They will also be there to help educate the property owners in how to file all of their returns and how to comply with the audit.”
A $25,000 cost included in the proposed budget to hire the company would cover almost 40 personal property accounts, ranging from small businesses to large corporate businesses, Gooch noted.
The assessors office typically audits businesses in the county through “desk audits,” but Gooch noted that Georgia code stipulates in-person auditing of personal property must also be done.
There are currently more than 1,700 personal property accounts in the county. Items in the category can range from technology, like computers and printers, to heavy equipment and machinery used by businesses.
“It’s designed to educate the taxpayers and try to get everybody to come to the table,” said Donna Walker, personal property appraiser, about how the in-person audits would be done. All businesses in the county have to be audited eventually, she noted.
Logan said just 40 accounts doesn’t sound like a whole lot for $25,000. Walker said the fees are based on the values of the accounts at hand.
Engel, who owns local winery Engelheim Vineyards, said the personal property audits put added costs and burden on local business owners.
“As a businessman, I’m sitting there saying I don’t have time to do that. Last time I did it, I was in business for about four months. I didn’t even know what the hell a personal property tax was at that particular point in time,” Engel said. “I spent three days with my bookkeeper tied up at full salary. It costs these businesses when we do this, and businesses are having a tough enough time right now.”
Walker said it’s not fair for some businesses to be doing that they’re supposed to be doing, while others aren’t. “Nobody likes to pay the taxes. That’s a given. But it’s not equitable or fair to businesses that are doing what they’re supposed to versus the ones that just don’t do anything,” Walker said.
Davis said the office shouldn’t need to hire an outside company to come in and do the auditing.
“Imagine you’re a citizen of this county, and the county’s hired somebody to come out there and throw it down on you — that’s what it is — and make sure they take more money out of your pocket,” he added. “We don’t need somebody outside of Gilmer County to come in and do that.”
Walker and Gooch said there’s also a manpower issue as the assessors office doesn’t currently have the staff or training needed to do all the audits and personal property verification in person.
“They (Traylor Business Services) are CPAs. They’re trained in it,” said Walker. “The Department of Revenue has already said they’ll be back next year asking how many in-person audits (we’ve) done. In the code, it says it can’t just be desk audits like we’ve been doing the last 10 years.”
Walker said, although a limited number of accounts would be reviewed at first, the audit process could possibly add items to the tax roll that would remain on it each year thereafter. On the other hand, some businesses might be overpaying on their personal property, she added.
Bradley asked if the county’s appraisers could get state training instead of hiring an outside company. Gooch said the DOR doesn’t provide this type of training to counties.
“We’re asking for a third party to help make sure that it’s being done properly and (staff members) will learn from being onsite,” Gooch said. “We will hold 100 percent accountability regardless of who assists us.”
The board ultimately allowed the expense for hiring the company to remain in the proposed budget, but with a stipulation requested by Engel. The contract will be for one time only, so as to allow the board to see if the returns justify the cost. Logan and Davis voted against hiring the company.
“In the next year, when it comes up, we’re going to look at it with just as critical a stance as we are right now, but more so because we’re going to be educated. We need to see something coming back,” said Engel.