Georgia tax lien certificate

Georgia: Property tax: Preferential assessment rate enacted for brownfield property

A preferential assessment rate for Georgia property tax purposes is enacted for property classified as brownfield property by the Georgia Department of Natural Resources. Property is categorized as brownfield property if (1) there has been a release of hazardous waste, hazardous constituents, and hazardous substances into the environment; (2) the Director of the Environmental Protection Division of the Department of Natural Resources has approved the prospective purchaser's corrective action plan or compliance status report for the property; (3) the Director of the Environmental Protection Division of the Department of Natural Resources has issued a limitation of liability certificate for the prospective purchaser; and (4) the Environmental Protection Division of the Department of Natural Resources has certified eligible costs of remediation.

Property classified as brownfield property will be assessed at the preferential rate of 40% of its fair market value. To receive the preferential assessment rate, the property owner must file an application with the county board of tax assessors and include the required certifications from the Department of Natural Resources with the application.

Property will remain classified and assessed as brownfield property for 10 years, unless prior to the 10-year period, (1) the taxpayer provides written notice to the local taxing authority to remove the preferential classification, (2) the property is sold or transferred to an exempt taxpayer, (3) the Department of Natural Resources revokes the limitation of liability, or (4) the tax savings accrued on the property equal the eligible brownfield costs certified by the Environmental Protection Division of the Department of Natural Resources.

Eligible brownfield costs are costs incurred after July 1, 2003, and directly related to the receipt of a limitation of liability from the Department of Natural Resources.

Brownfield property owners must annually report the tax savings realized for that year to the local taxing authority. The report must also include (1) the number of years that the preferential tax treatment has been received; (2) the total eligible brownfield costs; (3) tax savings realized to date; (4) transfers of eligible brownfield costs, if any; and (5) eligible brownfield costs remaining.

If in a tax year the taxes otherwise due on the fair market value of the property exceed any remaining eligible brownfield costs, the taxpayer must pay the taxes due on the fair market value of the property less any remaining eligible brownfield costs. A qualified brownfield property may be transferred or leased and continue to receive preferential tax treatment if certain circumstances are met. The property may also be subdivided into smaller parcels and continue to receive preferential tax treatment under certain circumstances.

A penalty equal to twice the difference between the total amount of tax paid pursuant to the preferential assessment and the total amount of taxes that would otherwise have been due will be imposed against any property owner who fails to abide by the corrective action plan. Also, interest will be imposed at the rate of 1% per month. Any penalties and interest imposed will constitute a lien against the property. (H.B. 531, Laws 2003, effective May 14, 2003.)