Mecklenburg County will be issuing 2019 reassessment notices in January and this will be their first reassessment since 2011. When the county last reassessed, the economy and real estate market were still in the midst of a downturn and had just begun recovering and, as a result, property values were still struggling to gain momentum. Now that the economy and real estate markets have recovered, we are anticipating significant increases to property values for 2019.
According to the county assessor, commercial property values have increased, on average, by 77%. Unfortunately, since the county does not determine tax rates until mid-summer, we will not know the full tax impact until that time. However, it is safe to say that commercial taxes will increase significantly.
Once you receive your 2019 assessment notice, please forward to us as soon as practical so that we may begin our review. For income producing properties, we will also need to review your 2017 & 2018 income statements along with your 2018 year-end rent roll. If you have recently had an appraisal made of your property, please forward a copy for our records.
If you are not aware, there is a proposed amendment to the Georgia Constitution being considered which will, in effect, allow CIDs – Community Improvement Districts – the opportunity to assess CID fees and/or taxes to owners of multi-family commercial properties. Currently, those properties are exempt from those fees/taxes. This amendment is in the Legislative Committee and, because it is a change to the GA constitution, it is a ballot initiative which will require passage on a statewide level. This being the case, the earliest that this could go on a statewide ballot would be 2020 which would, most likely, make the implementation date Jan 1, 2021.
The impact to you will depend on the assessed value of the specific apartment complex and the tax rate being assessed by the particular CID that your property may be located in. For example, if your property is located in the Atlanta Midtown CID, the additional fee/tax will be 5 mills, thus for every $1,000,000 in value, that will result in an assessment of $400,0000 (40% of the FMV) times .005 = $2,000 annually. We just wanted you to be aware of this pending situation and give you the opportunity to review and ask additional questions as necessary. We can be a resource for basic information but we recommend that, if this will involve you, that you contact the specific CID directly for more information.
Thank you and Happy Holidays from Fellers, Schewe, Scott & Roberts!
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