The Gilmer County Assessors Office is in a similar situation as it was last year with a property sales ratio lower than what the state requires to avoid losing utility tax revenue.
Chief Appraiser Theresa Gooch gave an update about this year’s still-to-be-determined property sales ratio to the local assessor board during a March 16 meeting.
Gooch said the assessors office is still “chasing the market” despite residential property being revalued each year and previously raising base costs used to determine property values.
Ideally, the sales ratios, which are used to determine how close assessed property values are to fair market value, should fall between 38-40 percent. A county is considered out of compliance if below 36 percent.
The assessors office has to base their values on the prior year’s sales, which has put them behind the still-booming housing and real estate market, Gooch noted.
“Our preliminary numbers are showing property values increased in 2022 compared to our 2022 assessments,” she added. “(These are) rough numbers, but our residential median (ratio) has dropped down to 32. It should be between 36-44, and we typically like (it) to be between 38-40.”
When asked by board member Gary Engel about whether prices on new building and existing home sales are up “across the board,” Gooch said the county is seeing a lot of new construction, but also “a lot of resale and a lot of high value in resale properties.”
Gooch noted that she anticipates another residential property base cost increase of 20 percent or more will be used this year to determine property values.
“It’s still going above what we raised last year for 2022,” she added.
“This is the third year in a row there’s been (that kind) of increase,” said board member Tom Porter.
Board member Jerry Davis, a professional property appraiser, said the county’s home sale prices are “still hovering at 100 percent, but the volume is down.”
“There’s not as many sales, but you’re seeing concessions now (with sellers) whereas concessions weren’t (previously) part of the equation,” he added.
Last year, the county’s overall property sales ratio dipped to 35.88. Further review by the Georgia Department of Audits (GDOA) was required after the county appealed the low ratio.
Following that review, the sales ratio was raised to 37.74, which still meant an approximately $45,000 loss in public utility tax revenue.
Last year, assessor board chair Bill Logan said 95 Georgia counties were in a similar situation, having failed at having in-compliance sales ratios. Many of those counties also appealed to the GDOA.
Logan said this year’s early sales ratio being so low again is “a serious problem.”
“I’m not looking for any good news when it comes to (the Department of Audits),” he added.
Gooch said she anticipates all property field work to be done around April 15 and assessment notices to go out in May.
In other news ...
Board members approved tax exemption for property owned by Pleasant Grove Baptist Church, but currently being used by another church, while also deciding to tax part of the property that can be rented for office space.
Ellijay City Church operates in the old Pleasant Grove church location, which it leases to hold services. The leaders of the Christian nondenominational church have also made some of the building available for rental as office space.
Gooch noted that 672 square feet is currently set aside for rentable office space. Based on the current value and millage rate, taxes for that area would be around $337, she added. Logan said the tax bill would go to Pleasant Grove, which needs to be aware of the change.
Josh Quigley, a leader of Ellijay City Church, told board members he has no problem with that decision. He said only one office was being rented as of Jan 1, but now two are being rented.
“If you rent one office or 15 offices, it’s still taxed (on square footage). We’re only voting on the taxable portion,” Logan said.
It was announced that Tom Porter, a 12-year member of the assessor board, is stepping off the board after choosing not to seek another term.
About his time on the board, Porter said, “This office has changed so dramatically. We have had some wonderful people join this organization, and it’s got to be one of the best assessor offices in the state,”
Gooch said Lisa Bradley, an employee of the Gilmer Chamber, will fill the vacant seat on the assessor board.