Property Tax Administration annual report FY 1998

1998 ANNUAL REPORT Regarding Property Tax Administration

State of
GEORGIA
GEORGIA DEPARTMENT OF
REVENUE
January 20, 1999 T. Jerry Jackson Commissioner

1998 ANNUAL REPORT REGARDING PROPERTY TAX ADMINISTRATION
TABLE OF CONTENTS
Highlights of Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 2
Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 5
Digest Review Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 6
Value and Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 9 Figure 1 - Average Level of Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 11 Figure 2 - Average Level of Uniformity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 12 Figure 3 - Average Level of Assessment Bias . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 13 Figure 4 - Total Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 14 Figure 5 - Average Millage Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 15 Figure 6 - 1997 Digest Values by Property Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 16 Figure 7 - Total Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 17 Figure 8 - 1997 Revenue by Tax Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 18 Figure 9 - 1997 County Tax Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 19 Figure 10 - 1997 School Tax Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 20 Figure 11 - 1997 State Tax Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 21
Public Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 22 Table 1 - 1998 Public Utility Equalization Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 22
Preferential Agricultural Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 25 Table 2 - Preferential Assessment Fiscal Impact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 27 Table 3 - Preferential Agricultural Assessment for 1997 . . . . . . . . . . . . . . . . . . . . . . Page 28 Figure 12 - Preferential Agricultural Assessment Revenues . . . . . . . . . . . . . . . . . . . Page 33 Figure 13 - Preferential Agricultural Assessment Values . . . . . . . . . . . . . . . . . . . . . . Page 34
Conservation Use Valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 35 Table 4 - Conservation Use Fiscal Impact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 36 Table 5 - Conservation Use Assessment for 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 37 Figure 14 - Conservation Use Fiscal Impact - Revenues . . . . . . . . . . . . . . . . . . . . . . Page 42 Figure 15 - Conservation Use Fiscal Impact - V alues . . . . . . . . . . . . . . . . . . . . . . . Page 43
Timber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 44 Table 6 - Timber Revenue for 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 45 Figure 16 - State-Wide Timber Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 48 Figure 17 - State-Wide Timber Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 49
Georgia Appraisal Procedures Manual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 50
Satellite Imagery Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 51
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 52

Commissioner's Report to the General Assembly
Regarding Property Tax Administration Georgia Department of Revenue January 20, 1999
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HIGHLIGHTS OF ANNUAL REPORT
DIGEST REVIEW:
! The Revenue Commissioner continues to insure uniformity and equalization between and within counties using the same procedures enacted in 1992, and in the manner prescribed in Article 5A of Chapter 5 of Title 48.
! Of the 53 counties falling in the 1997 review year, 9 county ad valorem tax digests failed to meet the state standards for approval, compared to 6 counties in 1996. As a result, $236,290 was assessed in penalties and $113,733 in additional state tax.
! Of the other 106 counties, 20 county ad valorem tax digests failed to have an acceptable overall average assessment ratio, compared to 14 in 1996. As a result, additional state tax in the amount of $345,085 was assessed these 20 counties.
! The average level of assessment, as measured by the Median, has fallen from 38.58% in tax year 1993 to 37.39% for tax year 1997. Even so, the assessment level remains within the acceptable standard.
! The average level of uniformity, as measured by the Coefficient of Dispersion, has decreased from 15.05% in 1993 to 11.82% for 1997, indicating improvement in this statistical measure.
! The average level of assessment bias, as measured by the Price Related Differential, has also shown improvement; a measure of 101.98% in 1997, compared to 102.43% in 1993.
! County assessed values reached a high of 157.2 billion in 1997 or a 7% increase from the values reported in 1996; while the average millage rate of 25.16 decreased less than 1% from 1996 to 1997.
PUBLIC UTILITIES:
! The state-wide average ratio for public utility property in 1998 was 37.42% compared to 37.86% in 1997. Though decreasing, we do not expect a continuation, as counties are
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expected to perform revaluations that will improve the state-wide average in future years.
! 55 counties assessed public utility property at a ratio less than 40%.
PREFERENTIAL AGRICULTURAL ASSESSMENT:
! Since the implementation of Preferential Agricultural Assessment in 1984, the number of parcels in this program has risen from approximately 10,000 to more than 23,000; the amount of value eliminated from the digests has increased from 86.9 million to 181.3 million; and the total tax dollar lost has increased from 1.6 million to 4.6 million.
! In 1992, 1993, and 1994, interest in the Preferential Agricultural Assessment program began to drop. We feel that this is a direct effect of the implementation of Conservation Use Valuation, however, since 1995, interest in the Preferential Agricultural Assessment program has picked up again and is expected to continue to grow.
CONSERVATION USE VALUATION:
! Since the implementation of Conservation Use Valuation in 1992, the number of parcels in this program has risen from approximately 16,000 to more than 55,000; the amount of value eliminated from the digests has increased from 395.8 million to 1.2 billion; and the total tax dollar lost has increased from 8.9 million to more than 32 million.
! Interest in the Conservation Use Valuation is expected to continue to grow as property valuations increase.
TIMBER TAXATION:
! Since 1993, values reported for timber sales and harvests have increased from 493.1 million to 593.1 million or 20%, while the revenues for the same time period have increased from 11.5 million to 15.1 million, or 31%.
! Prior to 1996, each quarter the Department was required to develop a "Table of Owner Harvest Timber Values" report used by timber companies and individuals for reporting the value of timber harvested from their own land. In 1996, the change to O.C.G.A. 48-5-7.5 requiring that this be done on an annual basis has definitely saved the Department time and personnel costs.
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SATELLITE IMAGERY PROJECT: ! In Fiscal Year 1998, $250,000 was funded for the implementation of the Satellite Imagery
Project, whereby, many different data will be consolidated into an easy to use program for the identification of land cover changes that will be used by the counties to detect unreported timber harvests. The data will also include Georgia Department of Transportation road network coverage, digital photographs and digital topographical maps. ! The implementation of this project and the delivery of data to the counties is expected by June, 1999. ! Training seminars are now being provided to county tax officials for the anticipated startup of the project, as well as continued training to be offered as a part of the Department's "Georgia Certification Program for County Tax Assessors and Appraisers".
RECOMMENDATIONS: ! Increase the level of state appraisal expertise provided to the counties. ! Continue funding for Satellite Imagery Project. ! Provide funds to conduct research into rapidly evolving technologies as required by
O.C.G.A. Section 48-5-270. ! Reinstate budget funds for minimum staff supplements.
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Reporting Requirements
The Commissioner's responsibility for continuing to provide the General Assembly with the effect of property tax administration and the continued enactment of laws created by legislation and administered by the Department of Revenue, Property Tax Division are as follows:
! O.C.G.A. Section 48-5-349.5 requires the examination of the digest of each county to ensure that all property valuations are reasonably uniform and equalized among the counties and within the counties. This code section provides for a status report on this review process along with the Commissioner's observations regarding the progress of the counties in ad valorem tax administration.
! O.C.G.A. Section 48-5-7.1 requires the submission of a report showing the fiscal impact of the law providing for the preferential assessment of tangible real property devoted to agricultural use.
Qualified farm property is assessed at 75% of the value under this program and this report analyzes the effect of this program on taxpayers and levying authorities.
! O.C.G.A. Section 48-5-7.4 requires a report showing the fiscal impact of the law providing for conservation use assessment of certain agricultural properties attendant with this code section.
Qualified farm property is assessed at its current use value using a table of values established by the Commissioner following specific legal procedures. This report analyzes the adverse fiscal impact, if any, on other taxpayers and levying authorities.
The Commissioner believes these separate reporting requirements are important in maintaining the awareness of the impact of its enactments.
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DIGEST REVIEW PROCEDURES

Digest Review Procedures
The Commissioner, through the Property Tax Division, has been given the statutory duty of reviewing county tax digests to determine if the digests meet the criteria mandated in statute case laws and regulation for level of assessment1, uniformity2 and equalization3.
Article 5A of Chapter 5 of Title 48 establishes the procedure for the Commissioner to equalize county property tax digests between and within counties and compel county boards of tax assessors to make adjustments in property valuations so as to insure uniformity and equity.
As directed by the legislature, the Commissioner has adopted a three year digest review cycle in which each county's tax digest is reviewed extensively to determine the level of assessment, uniformity and equalization in each property class. In any given year, one third of the county tax digests are subject to extensive statistical testing. Counties which do not meet the criteria set forth in the stature and regulations are allowed an opportunity during the three year cycle to correct any deficiencies by the next review year. The other counties that are not being extensively reviewed are examined for level of assessment to equalize the state levy and public utility assessments. Any county's digest is approved by the Commissioner as being reasonably uniform and equalized if the digest meets certain standards:
For those digests submitted by counties in their digest review year, the Commissioner completes his review on or before August 1 of the following tax year. Based upon this review, the Commissioner will approve any digest when it is found to be reasonably uniform and equalized by having met the following state established standards:
C the average level of assessment for each class of property meets the state standards of 36% to 44%;
1 The comparison of an individual property's actual sales price versus its assessed value is a measure of the level of assessment. The ratio required by state statute is 40%.
2 The measurement of quality of the results produced by a county's valuation program will determine if properties are valued in a uniform manner.
3 Equalization is the measure of equality of assessment. In order to possess good equalization a county tax digest should value all properties at about the same level of assessment.
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C the average measure of overall equalization, the coefficient of dispersion4, meets the state standard of 15% or less for residential properties and 20% or less for all other property classes; and
C the bias ratio, or statistical measure of price related differential5, meets the state standard of 95% to 110%.
The Commissioner conditionally approves the digest and assesses a penalty of $5.00 per taxable parcel of real property if a county's review year digest contains the same or similar deficiencies as the previous review year digest. If the overall average assessment level does not meet state standards, the county is assessed additional state tax in the amount equal to the difference between the state's one-quarter of a mill that would have been produced if the digest had been at the proper assessment level and the amount the digest actually produces for collection purposes.
For those counties submitting their digest during a non-review year, digests are evaluated by the Commissioner based on the overall average assessment ratio deviation from the proper assessment ratio of 36% to 44%.
If the Commissioner determines that a county's digest does not meet the acceptable ratio of 36% to 44%, the county is assessed additional state tax in the amount equal to the difference between the state's one-quarter of a mill that would have been produced if the digest had been at the proper assessment rate and the amount the digest actually produces for collection purposes.
To measure the compliance of each county in meeting state standards for digest approval, the Commissioner performs a sales ratio study for each county using actual sales compared to the assessed values established for ad valorem tax purposes. In some instances appraisals performed by the State Audit Department are included to supplement the study. Each county's ratio study measures the statistical standards of level of assessment, uniformity and equalization.
4 The coefficient of dispersion is the statistical representation of equalization. 5 The price related differential is the statistical measure of assessment bias. This demonstrates whether lower or higher priced properties are more accurately assessed.
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Results of the 1997 digest reviews for counties falling in the 1997 Review Year and the current status of each:
The review of the 53 counties falling within the 1997 review year resulted in 9 counties being subject to the $5.00 per taxable parcel penalty, additional state tax, or both.

COUNTY
Berrien Catoosa Dade Elbert Pulaski Quitman Schley Stephens Walker
TOTAL

$5/PARCEL PENALTY
41,450 36,240
14,870
143,730 236,290

ADDITIONAL STATE TAX
10,537 32,516 6,090 7,478 4,250
1,774 12,777 38,311 113,733

The review of the other 106 counties resulted in 18 counties being assessed additional state tax:

COUNTY
Bacon Calhoun Cherokee Dawson Fannin Gordon Grady

ADDITIONAL STATE TAX

COUNTY

3,957 Newton

3,331 Paulding

93,125 Pike

29,070 Spalding

8.769 Sumter

27,353 Turner

8,688 Twiggs

ADDITIONAL STATE TAX
33,823 35,324 6,315 25,195 21,523 3,525 5,308

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Haralson Lumpkin
Meriwether TOTAL

20,486 Upson 9.478 Warren
12,028 Wilcox

15,841 3,420 3,721 345,085

Several graphs are being included in this report as a visual indication of the average level of the various measurable statistical standards since 1993:
Figure 1 on Page 11labeled Average Level of Assessment indicates that the overall level of assessment has decreased but still remains close to the 40% statute. In general, Georgia law requires taxes to be assessed on 40% of the fair market value of the property. So the overall level of assessment is a measure of the effectiveness of the county's valuation program.
The overall equalization has improved significantly, as represented in Figure 2 on Page 12, the graph titled Average Level of Uniformity. The average level of uniformity indicates the equality of assessment between individual properties. Case law indicates that this is the most important measure of fairness within a taxing jurisdiction.
Beginning with the 1995 tax year the Commissioner through regulation tightened the acceptable standard for equalization and uniformity from 20% or less to 15% or less for residential properties, and from 25% or less to 20% or less for non-residential properties. For the 1997 review year, the average level of uniformity has decreased to 11.82% which was an improvement over the 1996 digest review year. This improvement is basically due to the reappraisals and updates of properties which are being performed in the counties.
Figure 3 on Page 13 labeled Average Level of Assessment Bias charts the past five years average assessment bias as measured by the Department's sales ratio studies. The assessment bias indicates an improvement over the last digest review year and remains well within the acceptable range of 95% to 110%.

Value and Revenue Since the implementation of the new digest review procedures, counties have been constantly
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performing either total or partial revaluations and updates to properties in order to conform to the state standards for acceptable digests. In doing these revaluations and updates, property values have increased significantly since 1990. Figures 4 and 5 on Pages 14 and 15 respectively show the changes in the total values and the average millage during the last five years, while Figure 6, Page 16, shows the breakdown by property class of the values reports on the 1997 tax digests. Property tax continues to be the primary revenue source for local governments. Currently, approximately $4.93 billion in revenue is collected from property taxes in Georgia. Although there is limited Department involvement in the collection of city taxes, this report does not focus on this tax type. Figures 7 and 8, Pages 17 and 18, show the total revenues and the revenue breakdown by tax type generated from the 1997 state tax digests, while Figures 9 through 11, Pages 19 through 21, breakdown the tax burden between the different classes of property that exist within the county tax digests. It is evident from these figures that residential property owners continue to bear the largest share of the tax burden with the commercial property owners following next.
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Average Level of Assessment
Acceptable Range: 36% to 44%

38.80% 38.60% 38.40% 38.20% 38.00% 37.80% 37.60% 37.40% 37.20% 37.00% 36.80% 36.60%

38.58%

37.88%

37.90% 37.65%

37.39%

1993

1994

1995

1996

1997

This graph indicates a decrease in the overall assessment, however it still remains close to the 40% statue.
Figure 1 1998 Legislative Report

Average Level of Uniformity
Acceptable Range: 0% to 15%

16.00% 14.00% 12.00% 10.00%
8.00% 6.00% 4.00% 2.00% 0.00%

15.04% 14.74% 15.38% 14.18%
11.82%

The average level of uniformity indicates the equality of assessment between individual properties. This graph is showing a decrease of 2.36%, which is an improvement over the 1996 percentage.

1993 1994 1995 1996 1997

Figure 2 1998 Legislative Report

Average Level of Assessment Bias
Acceptable Range: 95% to 110%

103.40% 103.20%

103.27%

103.00%

102.96%

102.80% 102.76%

102.60%102.43% 102.40%

102.20%

102.00% 101.80%

101.98%

101.60%

101.40%

101.20%

1993 1994 1995 1996 1997

The average level of assessment bias as measured by the Department's sales ratio study is shown on this graph.
Figure 3 1998 Legislative Report

Total Values
(Billions)

160

157.2 This graph shows the

147.3

140

131.7 137.0 136.1

changes in the total

120

values for the past five

100

year.

80

60

40

Figure 4

20

1998 Legislative Report

0 1993 1994 1995 1996 1997

Average Millage Rate

25.60

This graph shows the

25.40

25.44 25.28

fluctuations in the

25.20 25.00

25.17

25.16 millage rate during the

24.80

the past five years.

24.60

24.40

24.20

24.23

24.00

23.80

Figure 5

23.60

1993 1994 1995 1996 1997

1998 Legislative Report

1997 DIGEST VALUES BY PROPERTY CLASS

Mobile Homes .4% Motor Veh. 9.9%
Timber .4% Utility 6.3%
Industrial 6.9%

Residential 44.1% Agricultural 5.4%

Residential 44.1% Agricultural 5.4% Comm. 26.6% Industrial 6.9% Utility 6.3% Timber .4% Motor Veh. 9.9% Mobile Homes .4%

Comm. 26.6%
FIGURE 6

Total Revenues
(Billions)

6.00

This graph shows a

5.00

5.0

steady increase in the

total revenues from 1993

4.00

4.1 4.2

to 1997.

3.00

3.1 3.3

2.00

1.00 0.00

1993 1994 1995 1996 1997

Figure 7 1998 Legislative Report

1997 REVENUE BY TAX TYPE
REVENUE TOTALS = 5.01 BILLION

State .0400 0.81%
Cities .324 6.45%
School 2.981 59.42%

County 1.671 33.32%
FIGURE 8

State .0400 County 1.671 School 2.981 Cities .324

1997 COUNTY TAX REVENUE Revenue Totals = 1.671 Billion

Mobile Homes .01 Billion Motor Vehicle .16 Billion
Timber .01 Billion Utility .09 Billion
Industrial .16 Billion

Residential .67 Billion
Agricultural .09 Billion Commercial .47 Billion
FIGURE 9

Residential .67 Billion Agricultural .09 Billion Commercial .47 Billion Industrial .16 Billion Utility .09 Billion Timber .01 Billion Motor Vehicle .16 Billion Mobile Homes .01 Billion

1997 SCHOOL TAX REVENUE Revenue Totals = 2.981 Billion

Mobile Homes .01 Billion Motor Vehicle .30 Billion
Timber .08 Billion Utility .16 Billion
Industrial .29 Billion

Residential 1.18 Billion
Agricultural .12 Billion Commercial .87 Billion
FIGURE 10

Residential 1.18 Billion Agricultural .12 Billion Commercial .87 Billion Industrial .29 Billion Utility .16 Billion Timber .08 Billion Motor Vehicle .30 Billion Mobile Homes .01 Billion

1997 STATE TAX REVENUE Revenue Totals = 40.5 Million

Mobile Homes .2 Million
Motor Vehicle 3.9 Million Timber .1 Million Utility 2.5 Million
Industrial 4.0 Million

Residential 17.3 Million
Agricultural 2.1 Million Commercial 10.4 Million

Residential 17.3 Million Agricultural 2.1 Million Commercial 10.4 Million Industrial 4.0 Million Utility 2.5 Million Timber .1 Million Motor Vehicle 3.9 Million Mobile Homes .2 Million

FIGURE 11

PUBLIC UTILITIES

Public Utilities
O.C.G.A. Section 48-2-18 requires the Commissioner to annually propose assessments for public utility property and to insure that these properties are assessed at the same overall average assessment level as other property in the county. Each utility company is required to annually return their properties indicating location, description, type of property and valuation. The Commissioner's staff inspects these returns to
insure the accuracy of each utility company's declarations.
The location of the property must include the county within which it is located, the tax district within that county, (i.e. County, City, etc) and a physical address such as a street name. These property returns also include a physical description of the property. The utility company is required to identify the property's designated type, operating or non-operating. Operating property is defined as any property required, directly or indirectly, for the operation of the utility. Non-operating property would then be any property not required for the operation of the utility.
In determining each county's proposed assessments for 1998 public utilities and airlines, the Commissioner calculated the equalization ratios using 1997 digest totals and ratio statistics. This method insured that proposed public utility values were set at the same overall average assessment level as other properties.
Once these values and equalization ratios were approved by the State Board of Equalization, assessments were issued to the counties and utility companies. Each county board of tax assessors then determined the final assessment of utility properties by either accepting the State's proposed values or substituting their own in issuing assessment notices to the utility companies.
Table 1 below shows each county's 1998 equalization ratio as proposed by the state and the ratio finally determined by the county board of tax assessors. In most instances where the ratio used by the county exceeds the state proposal, it is due to the county's having preformed an update or revaluation, although there are some instances where the county has greater reliance on their own sales ratio study and has decided not to use the state's proposed rate:

COUNTY NAME
Appling Atkinson Bacon Baker Baldwin Banks Barrow Bartow

Public Utility Equalization Ratios - Table 1

PROPOSED RATIO
40.00% 40.00% 35.08% 40.00% 40.00% 40.00% 40.00% 40.00%

FINAL RATIO
40.00% 40.00% 35.08% 40.00% 40.00% 40.00% 40.00% 40.00%

COUNTY NAME
Brantley Brooks Bryan Bulloch Burke Butts Calhoun Camden

22

PROPOSED RATIO
40.00% 37.13% 37.59% 40.00% 40.00% 40.00% 34.15% 40.00%

FINAL RATIO
40.00% 37.13% 37.59% 40.00% 40.00% 40.00% 34.15% 40.00%

Ben Hill Berrien Bibb Bleckley
COUNTY NAME
Chatham Chattahoochee Chattooga Cherokee Clarke Clay Clayton Clinch Cobb Coffee Colquitt Columbia Cook Coweta Crawford Crisp Dade Dawson Decatur Dekalb Dodge Dooly Dougherty Douglas Early Echols Effingham Elbert Emanuel Evans Fannin Fayette Floyd Forsyth Franklin Fulton Gilmer Glascock Glynn Gordon Grady Greene Gwinnett Habersham Hall Hancock Haralson Harris Hart Heard Henry

36.34% 32.64% 36.26% 36.14%

36.34% 32.64% 36.26% 36.14%

PROPOSED RATIO
40.00% 40.00% 40.00% 34.09% 40.00% 40.00% 40.00% 40.00% 37.38% 40.00% 40.00% 40.00% 40.00% 40.00% 36.49% 40.00% 34.05% 28.33% 36.91% 37.64% 37.28% 36.90% 37.44% 37.53% 40.00% 40.00% 40.00% 35.57% 40.00% 40.00% 35.88% 36.69% 40.00% 40.00% 37.25% 36.82% 37.70% 36.39% 37.46% 34.93% 35.43% 40.00% 36.60% 37.74% 37.68% 40.00% 30.13% 40.00% 37.42% 36.64% 40.00%

FINAL RATIO
40.00% 40.00% 38.46% 34.09% 40.00% 40.00% 40.00% 40.00% 37.38% 40.00% 40.00% 38.66% 40.00% 40.00% 36.49% 40.00% 34.05% 28.33% 36.91% 37.64% 37.28% 40.00% 37.44% 37.53% 40.00% 40.00% 40.00% 35.57% 40.00% 40.00% 35.88% 40.00% 40.00% 40.00% 37.25% 40.00% 37.70% 40.00% 37.46% 40.00% 40.00% 40.00% 36.60% 37.74% 40.00% 40.00% 40.00% 40.00% 37.42% 40.00% 40.00%

Candler Carroll Catoosa Charlton
COUNTY NAME
Jenkins Johnson Jones Lamar Lanier Laurens Lee Liberty Lincoln Long Lowndes Lumpkin Macon Madison Marion McDuffie McIntosh Meriwether Miller Mitchell Monroe Montgomery Morgan Murray Muscogee Newton Oconee Oglethorpe Paulding Peach Pickens Pierce Pike Polk Pulaski Putnam Quitman Rabun Randolph Richmond Rockdale Schley Screven Seminole Spalding Stephens Stewart Sumter Talbot Taliaferro Tattnall
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40.00% 40.00% 33.22% 40.00%

40.00% 40.00% 33.22% 40.00%

PROPOSED RATIO
37.45% 40.00% 37.73% 37.75% 40.00% 37.92% 40.00% 36.15% 37.19% 40.00% 37.84% 35.47% 40.00% 37.34% 40.00% 40.00% 40.00% 32.62% 36.97% 40.00% 35.95% 37.40% 37.69% 36.36% 40.00% 34.41% 40.00% 40.00% 33.85% 37.37% 40.00% 40.00% 34.43% 37.44% 34.59% 40.00% 40.00% 40.00% 37.86% 40.00% 40.00% 33.92% 36.57% 37.09% 35.27% 34.99% 40.00% 31.96% 36.96% 36.60% 40.00%

FINAL RATIO
40.00% 40.00% 37.81% 37.75% 40.00% 40.00% 40.00% 36.15% 37.19% 40.00% 37.84% 35.47% 40.00% 37.34% 40.00% 40.00% 40.00% 32.62% 36.97% 40.00% 40.00% 37.40% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 33.85% 37.37% 40.00% 40.00% 34.43% 40.00% 34.59% 40.00% 40.00% 40.00% 37.86% 40.00% 40.00% 33.92% 36.57% 40.00% 35.27% 40.00% 40.00% 40.00% 36.96% 36.60% 40.00%

Houston Irwin Jackson Jasper Jeff Davis Jefferson
COUNTY NAME
Towns Treutlen Troup Turner Twiggs Union Upson Walker Walton Ware Warren Washington Wayne Webster Wheeler White Whitfield Wilcox Wilkes Wilkinson Worth
State- wide Average

40.00% 40.00% 40.00% 36.80% 40.00% 40.00% PROPOSED RATIO
40.00% 40.00% 40.00% 35.78% 35.38% 40.00% 33.34% 32.42% 37.55% 40.00% 33.29% 40.00% 40.00% 36.01% 36.91% 37.56% 37.77% 33.81% 40.00% 37.85% 40.00%
37.42%

40.00% 40.00% 40.00% 40.00% 40.00% 40.00% FINAL RATIO
40.00% 40.00% 40.00% 40.00% 35.38% 40.00% 33.34% 40.00% 37.55% 40.00% 40.00% 40.00% 40.00% 40.00% 36.91% 37.56% 37.77% 33.81% 40.00% 40.00% 40.00%

Taylor Telfair Terrell Thomas Tift Toombs

40.00% 40.00% 40.00% 40.00% 40.00% 40.00%

40.00% 40.00% 40.00% 40.00% 40.00% 40.00%

24

PREFERENTIAL AGRICULTURAL ASSESSMENT

Preferential Agricultural Assessment
In the 1983 legislative session, House Bill 230 was passed establishing preferential assessment of tangible real property devoted to bona fide agricultural purposes.
By statute, all real property is assessed at 40% of fair market value, however, House Bill 230 provided for a 30% level of assessment or 75% of the value at which other taxable real property is assessed. Property devoted to bona fide agricultural purposes was defined as follows:
I. Tangible real property where the primary use is good faith production of agricultural products including:
a. horticultural b. floricultural c. forestry d. dairy e. livestock f. poultry g. apiarian products and all other forms of farm products h. $100,000 or less of the fair market value of real property devoted to the storage or processing
of agricultural products. i. excludes the value of any residence located on the property.
II. Property qualifying for preferential assessment is limited to 2000 acres and must be owned by either
a. one or more natural or naturalized citizens;
b. a family farm corporation, owned by related individuals and deriving at least 80% of its gross income from agricultural pursuits on property located in Georgia.
In making application for preferential assessment, qualifying taxpayers must have signed a covenant (contract) agreeing to continuously maintain the property in agricultural pursuits for a period of 10 years. Transfers of ownership were allowed, provided the property was transferred to another qualifying entity that agreed to continue the property in agricultural pursuits for the remainder of the covenant period. Otherwise, the covenant was breached and a penalty imposed. Penalties ranged from 15 times the tax savings if the breach occurred during the first year of the covenant, to a minimum of 3 times the tax savings if a breach occurred during the tenth year of the covenant.
Since the passage of HOUSE BILL 230, several amendments have affected the provisions of preferential assessment.
I. In 1985, the General Assembly amended the statute to allow transfers of property under preferential assessment without a penalty being assessed. These types of transfers included:
a. up to 3 acres of land, to be used for residential purposes and occupied by parties related to
25

the covenant holder; b. mineral exploration; and c. for purposes of land conservation, federal agricultural assistance programs or for agricultural
management purposes. II. The amendment also reduced the penalty to the actual tax savings realized during the
covenant for breaches occurring as a result of foreclosure. III. A 1986 amendment added a provision allowing a reduced penalty of the actual tax savings
for breaches occurring as a result of an owner becoming medically unable to continue the property in agricultural uses. IV. In 1987, the statute was again amended to relax the penalties for covenant breaches. Rather than penalties being assessed at 3 times all years tax savings, the amendment set up a penalty amount of only one year's tax savings times a factor of 2 to 5 depending on the year of the covenant in which the breach occurred. Currently, the preferential assessment program will allow a covenant holder to transfer up to 5 acres of land to be used for residential purposes and occupied by parties related to the covenant holder.
26

Fiscal Impact
The Table 2 below shows for each tax year, since the beginning of this program, the state-wide number of parcels, the total value eliminated, the total tax dollar loss and the percentage change of each category. For 1997 the number of approved parcels for preferential assessment has continued to increase.
Preferential Assessment Fiscal Impact - Table 2

Year Parcels Percentage Total Value Percentage Total Tax Percentage Change Eliminated Change Dollar Lost Change

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997

10,001 11,839 12,642 13,446 15,306 16,978 19,947 23,086 23,243 18,388 17,836 22,226 23,501 23,915

N/A +18.4% + 6.8% + 6.4% +13.8% +10.9% +17.5% +15.7% + .7% - 20.9% - 3.0% +24.6% + 5.7% + 1.8%

86,969,884 105,327,904 115,411,332 119,970,016 134,584,711 148,115,075 176,780,216 204,261,412 180,985,796 145,151,076 137,170,751 165,278,063 174,157,485 181,350,311

N/A +21.1% + 9.6% + 3.9% +12.2% +10.1% +19.4% +15.5% - 11.4% - 19.8% - 5.5% +20.5% + 5.4% + 4.1%

1,588,974 N/A 1,992,707 +25.4% 2,227,704 +11.8% 2,370,396 + 6.4% 2,864,733 +20.9% 3,782,095 +32.0% 4,010,259 + 6.0% 4,657,783 +16.1% 4,232,187 - 9.1% 3,542,375 - 16.3% 3,362,403 - 5.1% 4,249,807 +26.4% 4,410,076 + 3.8% 4,654,542 + 5.5%

The Department will continue to monitor this program and provide data each year as required by law.

Table 3( pages 27 through pages 32), illustrates a county by county breakdown of the preferential agricultural assessment local impact fiscal analysis for 1997.

Figures 12 & 13 (Pages 33 and 34), show the trends which have occurred for the past ten year. Steady increases have continued to occur for 1997.

We feel the decreases which occurred in 1992 and 1993 are a result of the implementation of conservation use and the transfer of preferential agricultural covenants without penalty to conservation use covenants. The increase in 1997 is the continuation of the previous trend along with increased interest in South Georgia where conservation use values and fair market values continue to be approximately the same.

The Department will continue to monitor this program and provide data each year.

27

Table 3 County Name
Appling Atkinson Bacon Baker Baldwin Banks Barrow Bartow Ben Hill Berrien Bibb Bleckley Brantley Brooks Bryan Bulloch Burke Butts Calhoun Camden Candler Carroll Catoosa Charlton Chatham Chattahoochee Chattooga Cherokee Clarke Clay Clayton Clinch

Parcel Count
408 486
63 259
31 52 54 51 38 362 21 82 106 461 37 62 451 86 340 23 165 307 18 75
0 16 55
4 0 153 0 147

PREFERENTIAL AGRICULTURAL ASSESSMENT FOR 1997

Assessed Value Eliminated

State Tax Saved County Tax Saved

School Tax Saved

2,122,036

531

15,916

28,053

2,415,066

604

26,655

33,207

305,942

76

3,812

3,518

3,153,632

788

23,971

52,981

352,427

88

4,501

5,868

622,323

156

4,538

6,472

363,584

91

2,933

7,097

703,565

176

4,727

13,020

414,229

104

6,213

8,388

2,286,589

572

28,011

25,724

108,704

27

1,476

1,943

559,530

140

6,474

7,498

491,857

123

7,221

7,944

3,304,292

826

34,795

45,831

297,950

74

2,145

5,065

470,823

118

4,152

4,897

4,369,246

1,092

20,976

47,625

446,812

112

8,472

7,873

3,606,387

902

44,186

38,011

304,703

76

5,229

4,875

1,211,832

303

11,984

13,936

1,643,391

411

8,546

29,335

105,416

26

371

1,528

277,075

69

3,576

4,569

0

0

0

0

144,378

36

316

1,545

642,114

161

5,751

6,421

47,140

12

323

978

0

0

0

0

1,441,618

360

22,432

13,003

0

0

0

0

1,052,071

263

9,311

14,729

Special Tax Saved 0 0 0 0 0 0 364 0 0 0 326 0 15 19 0 90 0 0 0 0 0 0 0 1,389 0 0 0 0 0 0 0 4,471

Total Tax Savings
44,500 60,466
7,406 77,740 10,457 11,166 10,485 17,923 14,705 54,307
3,772 14,112 15,303 81,471
7,284 9,257 69,693 16,457 83,099 10,180 26,223 38,292 1,925 9,603
0 1,897 12,333 1,313
0 35,795
0 28,774

28

County Name
Cobb Coffee Colquitt Columbia Cook Coweta Crawford Crisp Dade Dawson Decatur Dekalb Dodge Dooly Dougherty Douglas Early Echols Effingham Elbert Emanuel Evans Fannin Fayette Floyd Forsyth Franklin Fulton Gilmer Glascock Glynn Gordon Grady

Parcel Count
0 186 155
22 30 117 115 349 80 17 454
1 180 400
21 10 367 184 69 237 369 67
2 0 35 85 14 37 79 88 12 243 343

PREFERENTIAL AGRICULTURAL ASSESSMENT FOR 1997

Assessed Value Eliminated

State Tax Loss County Tax Loss School Tax Loss

0

0

0

0

1,789,632

447

7,320

29,976

1,845,885

461

25,600

16,798

291,794

73

1,955

5,255

287,865

72

1,937

4,462

620,980

155

3,395

12,730

767,149

192

11,315

15,331

2,444,999

611

28,729

35,954

481,770

120

2,770

6,711

202,225

51

1,880

3,640

3,701,213

925

40,713

43,859

53,270

13

139

1,264

1,047,874

262

12,574

13,622

3,005,533

751

36,066

53,498

644,730

161

7,221

11,644

61,418

15

595

1,112

3,252,564

813

18,880

40,332

872,985

218

9,725

10,956

528,478

132

4,547

9,671

1,336,616

334

11,395

19,381

2,448,523

612

18,578

25,709

621,450

155

5,520

8,700

24,800

6

157

295

0

0

0

0

257,644

64

2,703

4,341

982,580

246

3,046

17,047

46,852

12

252

663

765,740

191

7,505

15,897

411,320

103

2,563

5,313

509,583

127

7,979

7,241

477,774

119

3,593

8,198

1,291,851

323

9,120

23,770

2,927,405

732

20,318

42,447

Special Tax Loss 0 0 0 0 0 1,512 0 0 0 0 0 139 0 0 4,636 0 0 0 916 0 0 0 0 0 322 983 0 6,460 0 0 555 0 0

Total Tax Loss
0 37,743 42,859
7,283 6,471 17,792 26,838 65,294 9,601 5,571 85,497 1,555 26,458 90,315 23,662 1,722 60,025 20,899 15,266 31,110 44,899 14,375
458 0
7,430 21,322
927 30,053
7,979 15,347 12,465 33,213 63,497

29

County Name
Greene Gwinnett Habersham Hall Hancock Haralson Harris Hart Heard Henry Houston Irwin Jackson Jasper Jeff Davis Jefferson Jenkins Johnson Jones Lamar Lanier Laurens Lee Liberty Lincoln Long Lowndes Lumpkin Macon Madison Marion McDuffie McIntosh

Parcel Count
145 1
215 0
517 182 128 140 181
93 64 371 210 92 73 334 267 42 102 57 140 286 93 47 28 103
8 7 354 335 142 110 29

PREFERENTIAL AGRICULTURAL ASSESSMENT FOR 1997

Assessed Value Eliminated

State Tax Loss County Tax Loss School Tax Loss

809,122

202

7,323

9,709

55,000

14

553

1,142

2,402,401

601

16,099

27,099

0

0

0

0

3,637,167

909

100,895

61,177

960,662

240

9,012

14,334

1,111,390

278

7,288

18,282

1,392,172

348

5,707

23,904

1,146,775

287

10,909

16,915

1,306,028

327

12,207

28,079

795,157

199

6,600

9,828

2,283,507

571

25,461

38,112

2,463,397

616

18,760

47,190

1,489,666

372

17,015

23,313

1,082,286

271

7,435

13,799

1,951,315

488

22,474

22,440

1,674,914

419

24,069

19,613

214,530

54

2,939

3,057

836,644

209

7,781

10,583

541,414

135

4,467

9,091

949,382

237

9,838

17,127

1,699,597

425

11,047

24,016

3,494,045

874

43,681

55,206

312,003

78

3,763

5,554

213,089

53

2,485

3,448

1,025,098

256

14,353

16,197

52,026

13

267

746

82,019

21

845

1,203

2,948,769

737

26,574

46,001

1,485,749

371

13,271

16,194

1,247,832

312

9,371

18,717

857,300

214

7,870

11,574

139,008

35

1,286

2,155

Special Tax Loss 0 187 144,144 0 0 0 0 0 0 6,491 398 0 2,907 0 0 0 0 0 0 0 0 0 0 0 386 0 0 0 0 0 0 0 0

Total Tax Loss
17,234 1,896
187,943 0
162,981 23,586 25,848 29,959 28,111 47,104 17,025 64,144 69,473 40,700 21,505 45,402 44,101 6,050 18,573 13,693 27,202 35,488 99,761 9,395 6,372 30,806 1,026 2,069 73,312 29,836 28,400 19,658 3,476

30

County Name
Meriwether Miller Mitchell Monroe Montgomery Morgan Murray Muscogee Newton Oconee Oglethorpe Paulding Peach Pickens Pierce Pike Polk Pulaski Putnam Quitman Rabun Randolph Richmond Rockdale Schley Screven Seminole Spalding Stephens Stewart Sumter Talbot Taliaferro

Parcel Count
477 40
511 29
349 65 75 19 17 12
329 8
36 50 321
6 51 148 71 48 198 192 15 64 93 483 135 98 10 126 291 151 156

PREFERENTIAL AGRICULTURAL ASSESSMENT FOR 1997

Assessed Value Eliminated

State Tax Loss County Tax Loss School Tax Loss

2,367,023

592

23,836

40,239

517,702

129

8,024

8,537

6,198,253

1,550

81,211

46,546

323,111

81

1,971

3,932

1,655,186

414

14,438

22,332

1,110,343

278

11,070

16,100

414,304

104

2,403

5,593

205,273

51

790

5,002

246,410

62

2,362

4,961

133,635

33

1,189

2,312

2,208,685

552

21,932

34,235

111,960

28

985

2,452

376,884

94

5,600

5,842

712,128

178

4,565

9,899

2,090,114

523

15,707

31,351

99,223

25

850

1,388

350,073

88

4,022

4,971

1,310,582

328

15,989

19,882

678,092

170

8,496

8,632

500,539

125

7,454

8,209

1,985,043

496

16,887

14,134

1,053,167

263

7,237

14,576

104,440

26

617

2,149

291,929

73

3,784

7,293

542,710

136

7,104

8,548

3,954,627

989

51,321

60,110

1,255,462

314

7,925

19,196

792,165

198

9,149

14,916

61,810

15

543

1,020

1,006,266

252

11,413

12,448

1,734,074

434

18,034

26,705

1,045,070

261

16,586

15,968

975,595

244

16,203

15,892

Special Tax Loss 0 0 0 0 0 0 0 1,575 655 0 0 0 0 0 0 0 0 1,311 0 0 0 0 154 0 0 0 0 2,538 0 0 1,075 0 0

Total Tax Loss
64,667 16,690 129,307
5,984 37,184 27,448
8,100 7,418 8,040 3,534 56,719 3,465 11,536 14,642 47,581 2,263 9,081 37,510 17,298 15,788 31,517 22,076 2,946 11,150 15,788 112,420 27,435 26,801 1,578 24,113 46,248 32,815 32,339

31

County Name
Tattnall Taylor Telfair Terrell Thomas Tift Toombs Towns Treutlen Troup Turner Twiggs Union Upson Walker Walton Ware Warren Washington Wayne Webster Wheeler White Whitfield Wilcox Wilkes Wilkinson Worth Total

Parcel Count
433 297 339 240 62
10 144
2 167
96 199 312
1 24 107 158 296 246 147 256 125 331 40 191 356 313 161 511 23,915

PREFERENTIAL AGRICULTURAL ASSESSMENT FOR 1997

Assessed Value Eliminated

State Tax Loss County Tax Loss School Tax Loss

2,737,708

684

43,113

33,400

2,531,561

633

20,259

23,037

1,399,273

350

11,546

19,058

1,810,113

453

21,540

26,428

1,597,250

399

9,599

14,056

65,153

16

601

766

767,468

192

4,924

9,547

36,530

9

201

146

816,204

204

12,802

9,941

469,645

117

4,147

7,881

1,473,692

368

20,632

19,895

1,245,965

311

13,628

22,988

21,329

5

125

181

273,284

68

2,987

4,304

872,990

218

3,431

14,177

1,909,456

477

20,680

32,276

1,414,413

354

15,912

25,573

1,292,805

323

15,668

21,357

944,052

236

8,664

16,794

1,695,624

424

20,178

23,400

1,089,467

272

18,015

14,119

1,142,475

286

12,243

12,567

413,325

103

2,852

6,593

1,711,971

428

3,520

29,275

2,016,229

504

31,251

25,425

2,401,392

600

18,705

30,162

1,258,553

315

12,236

19,508

3,603,808

901

39,900

42,705

181,350,311

45,335

1,867,804

2,554,485

Special Tax Loss 0 0 0 0 2,133 0 767 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 186,918

Total Tax Loss
77,197 43,929 30,954 48,421 26,187
1,383 15,430
356 22,947 12,145 40,895 36,927
311 7,359 17,826 53,433 41,839 37,348 25,694 44,002 32,406 25,096 9,548 33,223 57,180 49,467 32,059 83,506 4,654,542

32

Preferential Agricultural Assessment Revenues (Millions)

5.00 4.50 4.00 3.50 3.00 2.50

4.7

4.6

4.1

4.2

3.8

4.4 4.2

3.4 3.5 2.9

2.00

1.50

1.00

0.50

0.00

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997

The tax revenue lost due to properties being under the preferential agricultural assessment program is shown on this graph.
Figure 12 1998 Legislative Report

Preferential Agricultural Assessment Values
(Millions)

250.00

200.00 150.00 100.00

204.2

176.8
148.1 134.6

181.0 165.3
145.1 137.1

181.3 174.1

The graph at the left is showing the trends in the amount of taxable value eliminated due to preferential assessment covenants for the past 10 years.

50.00

0.00

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997

Figure 13 1998 Legislative Report

CONSERVATION USE VALUATION

Conservation Use Valuation
In 1991, the Legislature embraced the "current use" valuation concept although it was called "conservation use". This bill provided for the assessment for ad valorem tax purposes of certain qualifying properties based on current use value rather than fair market value. The bill provided for the Commissioner to develop a table of current use land values to be used in all counties. The current use values result from a legislative formula which takes into account the income the land is capable of producing when growing certain crops and timber, and factors founded in market data using only farmer to farmer land sales.
The data is grouped into the nine agricultural districts in Georgia. The tax year 1997 was the sixth year of the conservation use program and county tax digests are continuing to show that taxpayers are still filing conservation use applications.
The law also opens an opportunity for agricultural land owners in preferential covenant to convert to a conservation use covenant if they choose to do so. The valuation differential between conservation use values and fair market values is most significant in the Urban Areas of North Georgia and other parts of the State where strong residential and commercial development is occurring and agricultural land owners interest is greatest in those transitional areas.
Difficulties in Administering Conservation Use Valuation
The conservation use statute requires the Commissioner to develop the table of land values for use by the counties. This was a significant increase to the Property Tax Division's field staff and now consumes fully of the available man-hours. Accordingly , there has been a cutback in the amount of technical assistance the Department has been able to provide to the appraisal of non-operating public utility property as required by statute. This under staffing is the motivation behind the Departments request in 1996 legislative sessions for assessing the non-operating public utility properties to be shifted to the counties.
The Department continues to be understaffed in administering this program and finds it increasingly difficult to develop annual valuations for conservation use covenants using such limited resources.
The Property Tax Division employs ten Principal Property Tax Appraisers and one upper management positions for approximately 3 months in the preparation of the market study and development of the regulations even though these positions are already fully engaged with existing duties. The market study required gathering, editing and qualifying sales, personally interviewing taxpayers, inspecting sales, transferring tax map information to soil maps and applying planimetric measurements
35

to soil maps. The total cost for personnel, expenses and other costs associated with the development of values are approximately 300,000 annually.

Fiscal Impact
Several reports, graphs and charts have been compiled to show the fiscal impact of conservation use valuation:
Conservation Use Assessment for 1997- Table 4(below), represents the 10 counties most affected by Conservation Use Assessment Covenants. Shown in this table is a listing by counties of the number of applications (parcel count), assessed value eliminated from the digest and the amount of tax loss for each county.
The total amount of taxes loss in these 10 counties accounted for approximately 38% of the total amount of taxes lost state-wide.

COUNTY NAME
Cherokee Columbia Forsyth Hall Henry Jackson Lumpkin Morgan Oconee Walton

Conservation Use Fiscal Impact - Table 4

PARCEL COUNT
1956 2897
817 1728
890 817 649 734 1013 691

ASMT VALUE ELIMINATED 102,736,800
32,600,051 50,432,760 56,208,126 40,627,890 34,878,820 31,125,294 44,144,952 33,323,098 32,967,421

TAX LOSS TOTAL
2,888,961 813,967
1,095,344 1,313,053 1,464,360
982,587 842,242 781,650 882,904 916,887

Figure 14 on Page 42 shows the amount of revenue loss for tax years 1993, 1994, 1995, 1996 and 1997. The amount of revenue loss has continued to increase since the inception of the Conservation Use Program.
Figure 15 on Page 43 illustrates the trend of an ever increasing amount of value removed annually from the Statewide taxable digest. As the graph shows, from 1993 to 1997 the amount of value removed increased from 651 million to 1,193.4 million, an increase of 542.4 million dollars.
Table 5 on the following pages provides a listing in county order, of the number of parcels receiving Conservation Use Assessment, the amount of value eliminated from the taxable digest in each county and the tax dollars lost in each appropriate taxing district ( State, County, School, Special) and the Total tax dollar lost. Special districts include the Hospital Authority, Fire District, Industrial Authority and etc.
36

TABLE 5 County Name
Appling Atkinson Bacon Baker Baldwin Banks Barrow Bartow Ben Hill Berrien Bibb Bleckley Brantley Brooks Bryan Bulloch Burke Butts Calhoun Camden Candler Carroll Catoosa Charlton Chatham Chattahoochee Chattooga Cherokee Clarke Clay Clayton Clinch Cobb

CONSERVATION USE ASSESSMENT FOR 1997

Parcel Count

Assessed Value State Tax Loss Eliminated

County Tax Loss

School Tax Loss

33

207,787

52

1,558

2,747

45

137,485

34

1,577

1,890

126

1,036,404

259

12,903

11,919

1

10,900

3

83

183

353

4,193,428

1,048

53,550

69,647

455

21,810,528

5,453

159,126

226,829

1,085

27,934,799

6,984

225,912

545,120

666

19,240,752

4,810

129,420

351,505

0

0

0

0

0

9

86,398

22

1,058

972

102

1,257,718

314

17,073

22,483

41

529,584

132

6,208

7,096

69

486,085

122

7,119

7,851

151

2,688,734

672

28,298

37,293

137

2,357,960

589

17,409

40,085

1,416

25,102,680

6,276

222,949

261,068

0

0

0

0

0

578

13,945,100

3,486

264,399

245,713

0

0

0

0

0

197

3,744,053

936

64,530

59,905

226

3,860,978

965

38,402

44,401

403

5,484,822

1,371

28,521

95,018

249

6,266,274

1,567

22,172

90,855

138

610,750

153

8,068

10,071

31

1,374,951

344

8,789

27,471

0

0

0

0

0

262

5,084,111

1,271

45,610

50,597

1,956

102,736,800

25,684

703,747

2,132,532

163

4,241,047

1,060

61,665

80,580

2

50,525

13

786

456

142

3,880,368

970

18,044

71,166

0

0

0

0

0

634

19,955,457

4,989

152,659

350,570

Special Tax Loss

Total Tax Loss

0

4,357

0

3,501

0

25,081

0

269

0

124,245

0

391,408

27,508

805,524

0

485,735

0

0

0

2,052

3,716

43,586

0

13,436

142

15,234

0

66,263

0

58,083

12,089

502,382

0

0

0

513,598

0

0

48

125,419

0

83,768

0

124,910

0

114,594

3,060

21,352

3,017

39,621

0

0

0

97,478

26,998

2,888,961

1,739

145,044

0

1,255

17,547

107,727

0

0

133,242

641,460

37

TABLE 5

CONSERVATION USE ASSESSMENT FOR 1997

County Name
Coffee Colquitt Columbia Cook Coweta Crawford Crisp Dade Dawson Decatur Dekalb Dodge Dooly Dougherty Douglas Early Echols Effingham Elbert Emanuel Evans Fannin Fayette Floyd Forsyth Franklin Fulton Gilmer Glascock Glynn Gordon Grady

Parcel Count

Assessed Value Eliminated

469

11,035,301

670

8,468,795

2,897

32,600,051

322

6,033,863

932

14,769,580

140

1,219,718

29

199,864

68

535,182

349

8,341,576

6

81,740

16

695,552

0

0

7

118,503

51

1,762,040

127

5,204,869

23

263,453

15

158,446

423

6,772,462

211

2,028,080

13

36,529

2

23,488

585

12,002,576

160

6,296,396

551

7,389,633

817

50,432,760

1,175

15,035,828

352

18,766,490

859

18,041,160

5

8,002

61

2,197,787

837

14,795,775

72

686,996

State Tax Loss
2,759 2,117 8,150 1,508 3,692
305 50
134 2,085
20 174
0 30 441 1,301 66 40 1,693 507
9 6 3,001 1,574 1,847 12,608 3,759 4,694 4,510 2 549 3,699 172

County Tax Loss School Tax Loss

45,285 117,599 218,420
40,701 80,212 18,016
2,348 3,077 77,435
899 1,808
0 1,422 19,735 50,383 1,528 1,765 58,277 17,279
277 208 75,949 36,191 77,517 157,295 81,532 184,010 112,396 125 16,527 104,458 4,789

184,841 77,066
587,127 93,525
302,777 24,375 2,939 7,455
150,149 969
16,505 0
2,109 31,822 94,208
3,267 1,988 123,936 29,402
384 329 142,831 156,339 124,211 875,008 212,907 389,800 233,586 114 37,714 270,949 9,961

Special Tax Loss 0 0 0 0 36,681 0 0 0 0 0 1,808 0 0 11,766 0 0 0 11,750 0 0 0 0 21,573 9,175 50,433 0 154,607 0 0 3,586 0

Total Tax Loss
232,885 196,782 813,967 135,734 423,362
42,696 5,337
10,666 229,669
1,888 20,295
0 3,561 63,764 145,892 4,861 3,793 195,656 47,188
670 543 221,781 215,677 212,750 1,095,344 298,198 733,111 350,492 241 58,376 379,106

0

14,922

38

TABLE 5
County Name
Greene Gwinnett Habersham Hall Hancock Haralson Harris Hart Heard Henry Houston Irwin Jackson Jasper Jeff Davis Jefferson Jenkins Johnson Jones Lamar Lanier Laurens Lee Liberty Lincoln Long Lowndes Lumpkin Macon Madison Marion McDuffie McIntosh

CONSERVATION USE ASSESSMENT FOR 1997

Parcel Count

Assessed Value Eliminated

225

1,995,392

445

23,444,530

588

20,763,672

1,728

56,208,126

78

864,575

225

4,130,361

355

10,240,340

337

8,449,056

110

1,204,146

890

40,627,890

196

11,255,144

602

7,742,205

817

34,878,820

647

23,398,316

5

190,477

0

0

6

112,541

311

1,104,338

142

2,273,673

229

4,598,462

11

87,716

0

0

120

5,827,394

22

284,763

181

1,170,170

43

582,012

60

1,205,719

649

31,125,294

7

192,027

349

4,804,107

6

69,517

151

1,859,958

39

2,523,335

State Tax Loss
499 5,861 5,191 14,052
216 1,033 2,560 2,112
301 10,157
2,814 1,936 8,720 5,600
48 0
28 276 568 1,150
22 0
1,457 71
293 146 301 7,781
48 1,201
17 465 631

County Tax Loss School Tax Loss

18,058 235,619 139,032 387,836
23,983 38,798 67,017 34,740 11,443 378,762 93,418 86,326 265,878 255,809
1,407 0
1,617 15,132 21,145 37,938
906 0
72,905 3,434
13,664 8,168 6,377
317,487 1,730
42,996 522
17,108 23,341

23,945 486,474 234,214 810,115
14,542 61,955 168,454 145,070 17,761 873,500 139,114 129,217 668,409 350,534
2,429 0
1,318 15,737 28,762 77,208
1,582 0
92,073 5,069
18,933 9,196
17,290 456,382
2,996 52,364
1,043 25,109 39,112

Special Tax Loss 0 78,882 1,245,820 58,981 0 0 0 0 0 201,921 5,628 0 39,580 0 0 0 0 0 0 0 0 0 0 0 2,118 0 0 0 0 0 0 0 0

Total Tax Loss
42,502 806,836 1,624,257 1,270,984
38,741 101,786 238,031 181,922
29,505 1,464,340
240,974 217,479 982,587 611,943
3,884 0
2,963 31,145 50,475 116,296
2,510 0
166,435 8,574
35,008 17,510 23,968 781,650
4,774 96,561
1,582 42,682 63,084

39

TABLE 5 County Name
Meriwether Miller Mitchell Monroe Montgomery Morgan Murray Muscogee Newton Oconee Oglethorpe Paulding Peach Pickens Pierce Pike Polk Pulaski Putnam Quitman Rabun Randolph Richmond Rockdale Schley Screven Seminole Spalding Stephens Stewart Sumter Talbot Taliaferro Tattnall

CONSERVATION USE ASSESSMENT FOR 1997

Parcel Count

Assessed Value Eliminated

State Tax Loss

County Tax Loss School Tax Loss

278

2,432,848

608

24,473

41,358

35

425,646

106

6,598

7,019

78

1,719,010

430

22,523

12,878

288

5,244,911

1,311

31,994

63,831

34

298,344

75

2,598

3,976

734

44,144,952

11,036

440,125

640,015

173

2,913,633

728

16,899

39,334

65

3,276,513

819

4,158

79,849

903

26,078,631

6,520

249,964

522,766

1,013

33,323,098

8,331

298,084

576,489

12

84,482

21

881

1,309

724

26,911,135

6,728

237,097

589,354

103

2,579,240

645

38,327

39,978

220

10,148,557

2,537

65,052

141,065

37

338,865

85

2,545

5,083

440

9,958,710

2,490

85,346

139,322

421

5,218,477

1,305

59,960

74,102

4

8,058

2

98

122

132

2,973,793

743

37,262

37,856

0

0

0

0

0

192

8,906,068

2,227

75,883

63,411

0

0

0

0

0

135

2,435,309

609

14,392

50,094

116

5,688,986

1,422

73,730

142,110

0

0

0

0

0

17

111,113

28

1,471

1,689

7

54,916

14

347

840

235

5,117,907

1,279

59,112

96,370

237

3,539,080

885

30,994

58,395

4

35,328

9

401

437

0

0

0

0

0

887

9,471,737

2,368

150,317

144,728

1

16,850

4

280

274

32

205,250

51

3,269

2,504

Special Tax Loss 0 0 0 0 0 0 0 30,317 68,790 0 0 0 0 0 0 0 0 8 0 0 0 0 3,478 0 0 0 0 15,799 0 0 0 0 0 0

Total Tax Loss
66,439 13,723 35,831 97,136
6,649 1,091,176
56,961 115,143 848,040 882,904
2,211 833,179
78,950 208,654
7,713 227,158 135,367
230 75,861
0 141,521
0 68,573 217,262
0 3,188 1,201 172,560 90,274
847 0
297,413 558
5,824

40

TABLE 5 County Name
Taylor Telfair Terrell Thomas Tift Toombs Towns Treutlen Troup Turner Twiggs Union Upson Walker Walton Ware Warren Washington Wayne Webster Wheeler White Whitfield Wilcox Wilkes Wilkinson Worth Total

CONSERVATION USE ASSESSMENT FOR 1997

Parcel Count

Assessed Value Eliminated

State Tax Loss

County Tax Loss School Tax Loss

2

54,377

14

435

495

3

14,654

4

137

200

15

456,609

114

5,434

6,666

634

22,470,728

5,618

135,553

195,887

713

23,396,100

5,849

215,769

274,904

2

10,393

3

75

66

160

4,301,366

1,075

23,658

17,205

0

0

0

0

0

11,385

5,730,564

1,433

50,601

96,159

26

170,166

43

2,382

2,297

0

0

0

0

0

578

24,704,028

6,176

144,766

209,984

340

4,847,095

1,212

53,148

76,341

15

214,550

54

843

3,484

691

32,967,421

8,242

357,038

551,597

16

84,198

21

947

1,523

53

307,399

77

3,720

5,078

1

9,436

2

87

168

355

3,425,611

856

40,764

47,273

0

0

0

0

0

3

17,882

4

190

197

649

22,178,896

5,545

153,116

353,686

6

58,835

15

118

1,006

0

0

0

0

0

434

5,522,479

1,381

43,117

69,363

178

1,060,223

265

10,357

16,433

121

1,211,281

303

13,397

14,354

55,425 1,193,418,787

298,358

9,821,526

19,525,447

Special Tax Loss 0 0 0 21,947 0 10 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,303,764

Total Tax Loss
944 341 12,214 359,005 496,522 154 41,938
0 148,193
4,722 0
360,926 130,701
4,381 916,887
2,491 8,875
257 88,893
0 391 512,347 1,139
0 113,861
27,055 28,054 31,949,095

41

Conservation Use Fiscal Impact- Revenues
(Millions)

35.00

30.00

25.00 20.00 15.00

15.80

20.40

24.00

27.00

31.90

10.00

5.00

This graph shows the amount of tax revenue lost for tax years 1993, 1994, 1995, 1996 and 1997.
Figure 14 1998 Legislative Report

0.00 1993 1994 1995 1996 1997

Conservation Use Fiscal Impact- Values
(Millions)

1200.0 1000.0
800.0 600.0

1193.4 1036.7 920.7 811.9
651.0

This graph illustrates a trend of an ever increasing amount of value being removed annually from the State-wide taxable digest.

400.0

200.0 0.0

1993 1994 1995 1996 1997

Figure 15 1998 Legislative Report

TIMBER

Timber Impact Report
Prior to 1992 timber was taxed annually as part of the tax digest. At that time, approximately 82 counties placed some value on standing timber, the other counties either did not tax timber or could not identify the value separate from the land value.
Along with Conservation Use Valuation the amendment to the Georgia Constitution which was approved by the electorate in 1991 also provided for a one time assessment on harvested timber versus the annual taxation of timber as part of the value of the real estate. Timber is taxed once at its current market value when harvested.
Pursuant to O.C.G.A. Section 48-5-7.4(s), see Table 6 on the following pages regarding the 1996 timber revenue. The attached report shows the total assessed value (100%) of timber and the revenue for county and school purposes as reported on each county's 1997 digest.
Effective January 1, l996, a change in the timber tax law affected the billing of owner harvest's transactions and the Department's requirement to develop annual average timber value tables. The Department is developing timber prices on an annual rather than a quarterly basis. Table 7 on pages 50 through 54 shows the average timber value table that has been developed for the 1998 owner harvest timber values. This is the first table which has been developed since the change in the timber laws.
Figures 16 & 17 on Pages 48 and 49 shows the relationship between the fair market value of timber founded in the industry and the actual revenues levied on harvested timber.
The local tax officials have not had any method of confirming where timber has been harvested and whether or not the taxes were paid on timber. This has posed many problems in the past, however, funding was approved for a Satellite Imagery Project whereby the Department will purchase satellite photographs to be provided to all counties in helping solve this problem. This subject will be discussed under the Satellite Imagery Project Section beginning on page 55.
44

Table 6 County Name
Appling Atkinson Bacon Baker Baldwin Banks Barrow Bartow Ben Hill Berrien Bibb Bleckley Brantley Brooks Bryan Bulloch Burke Butts Calhoun Camden Candler Carroll Catoosa Charlton Chatham Chattahoochee Chattooga Cherokee Clarke Clay Clayton Clinch

Assessed Value
8,000,000 5,255,316 2,385,472 2,271,515 5,860,146 1,228,446 1,169,264
514,808 3,948,885 1,930,587 1,752,270 1,886,955 8,237,186 4,848,744 4,521,055 10,175,740 7,183,548 1,940,818
978,269 19,122,873
2,715,273 3,755,256
160,435 12,484,001 3,169,815
421,268 1,105,614 2,082,447
839,997 1,300,000 1,091,831 10,000,000

County
56,000 46,021 32,204 15,201 63,114
9,764 9,354 3,295 64,288 23,650 24,195 21,832 122,885 50,815 37,205 85,431 34,481 30,975 11,974 257,585 21,614 19,527
568 148,330
37,658 447
9,857 14,569 13,037 19,305 5,328 96,000

TIMBER REVENUE FOR 1997

School

Total

County Name

Assessed Value

105,760

161,760 Cobb

353,753

72,266

118,287 Coffee

6,659,757

27,433

59,637 Colquitt

3,616,770

33,687

48,888 Columbia

6,244,407

107,885

170,999 Cook

4,045,361

13,390

23,154 Coweta

2,687,148

23,993

33,347 Crawford

3,541,488

10,384

13,679 Crisp

2,042,047

79,965

144,253 Dade

112,230

21,719

45,369 Dawson

101,288

30,912

55,107 Decatur

7,189,442

26,889

48,721 Dekalb

337,627

133,031

255,916 Dodge

7,700,000

62,403

113,218 Dooly

2,710,392

81,153

118,358 Dougherty

895,095

105,828

191,259 Douglas

470,949

73,631

108,112 Early

2,783,852

32,256

63,231 Echols

9,701,638

10,692

22,666 Effingham

9,436,686

308,834

566,419 Elbert

3,344,056

31,226

52,840 Emanuel

11,839,961

70,495

90,022 Evans

1,769,343

2,406

2,974 Fannin

14,797

196,498

344,828 Fayette

499,663

63,333

100,991 Floyd

3,000,837

4,912

5,359 Forsyth

214,566

11,056

20,913 Franklin

1,430,816

43,211

57,780 Fulton

1,343,815

18,379

31,416 Gilmer

1,292,075

14,079

33,384 Glascock

2,625,851

21,662

26,990 Glynn

5,887,095

160,000

256,000 Gordon

17,473

County School

Total

2,759 27,661 54,172 41,838 27,477 15,589 52,237 23,994
814 940 79,084 915 77,000 28,188 10,025 4,582 16,981 100,897 98,698 30,230 89,629 20,100
94 2,948 29,228
805 6,768 12,847 8,047 18,722 44,271
88

7,652 117,012
32,913 115,584
64,726 57,774 70,015 34,112
1,743 2,076 78,005 8,316 100,100 48,245 16,165 9,937 33,824 131,438 186,469 51,833 139,120 19,463
176 12,532 51,248
3,830 20,260 28,570 18,089 43,222 101,023
316

10,411 144,673
87,085 157,422
92,203 73,363 122,252 58,106
2,557 3,016 157,089 9,231 177,100 76,433 26,190 14,519 50,805 232,335 285,167 82,063 228,749 39,563
270 15,480 80,476
4,635 27,028 41,417 26,136 61,944 145,294
404

TABLE 6

TIMBER REVENUE FOR 1997

45

County Name
Grady Greene Gwinnett Habersham Hall Hancock Haralson Harris Hart Heard Henry Houston Irwin Jackson Jasper Jeff Davis Jefferson Jenkins Johnson Jones Lamar Lanier Laurens Lee Liberty Lincoln Long Lowndes Lumpkin Macon Madison Marion

Assessed Value
6,019,672 9,475,844 1,578,642 1,119,181
833,872 7,719,858 2,946,649 3,759,822
937,544 963,416 2,233,045 2,967,309 4,325,340 557,976 3,535,063 6,538,571 7,558,699 3,770,119 5,793,709 6,603,545 1,257,720 1,262,517 7,618,997 2,487,750 5,551,216 3,762,379 7,953,905 4,585,620 405,993 2,543,692 1,097,790 1,772,720

TABLE 6

County

School

42,740 85,593 17,444
7,465 5,879 234,298 27,581 24,552 3,872 9,422 20,812 24,925 48,228 4,229 43,483 55,578 87,604 56,439 79,374 59,434 10,691 13,332 49,523 34,754 69,890 29,368 111,116 23,616 4,344 22,919 9,780 13,162

87,285 118,601
29,588 13,173 13,209 140,887 44,200 68,880 10,482 13,247 48,010 40,444 72,190 11,372 58,046 97,752 101,287 44,148 84,009 80,563 22,450 19,544 107,656 38,187 98,812 61,816 128,615 65,758
7,154 44,642 11,637 27,920

Total

County Name

130,025 McDuffie

204,194 McIntosh

47,032 Meriwether

20,638 Miller

19,088 Mitchell

375,185 Monroe

71,781 Montgomery

93,432 Morgan

14,354 Murray

22,669 Muscogee

68,822 Newton

65,369 Oconee

120,418 Oglethorpe

15,601 Paulding

101,529 Peach

153,330 Pickens

188,891 Pierce

100,587 Pike

163,383 Pol k

139,997 Pulaski

33,141 Putnam

32,876 Quitman

157,179 Rabun

72,941 Randolph

168,702 Richmond

91,184 Rockdale

239,731 Schley

89,374 Screven

11,498 Seminole

67,561 Spalding

21,417 Stephens

41,082 Stewart

Assessed Value 3,766,120 6,615,120 5,534,479 1,217,665 5,683,675 2,521,106 5,027,544 2,613,074 723,866 608,201 1,441,543 2,320,777 7,643,065 1,067,080 1,681,890 228,595 5,735,924 810,000 2,194,082 1,404,451 5,593,951 1,621,997 0 6,590,152 1,628,000 1,118,298 1,537,495 6,838,269 1,872,269 858,753 792,306 3,226,069

TIMBER REVENUE FOR 1997

County

School

34,573 62,182 51,181 16,706 67,720 15,379 43,639 28,639
4,198 2,654 11,085 18,000 71,310 9,646 25,565 1,580 62,808 6,764 25,199 17,373 75,686 27,120
0 39,080 11,038 15,612 20,310 88,629 12,301
9,919 7,313 36,777

55,249 102,534 117,884
18,192 49,621 30,707 65,358 39,196 10,496 14,822 29,018 39,221 106,009 23,369 33,217
4,014 88,046 10,660 31,160 22,275 67,927 27,444
0 95,689 31,860 28,595 27,629 103,942 21,849 15,363 13,921 38,229

Total
89,822 164,716 169,065
34,898 117,341
46,086 108,997
67,835 14,694 17,476 40,103 57,221 177,319 33,015 58,782
5,594 150,854
17,424 56,359 39,648 1,463,613 54,564
0 134,769
42,898 44,207 47,939 192,634 34,150 25,282 21,234 75,006

46

County Name
Sumter Talbot Taliaferro Tattnall Taylor Telfair Terrell Thomas Tift Toombs Towns Treutlen Troup Turner Twiggs Union

Assessed Value
2,871,306 4,344,000 3,069,959 5,999,536 1,737,474 7,677,738 3,470,660 7,286,547 2,868,685 4,725,475
0 3,039,291 4,294,734 2,898,478 5,597,135
1,407

County

School

31,297 84,969 52,159 96,253 13,900 62,343 41,404 48,253 24,736 30,390
0 48,689 37,923 40,579 56,139
8

49,272 63,509 46,663 79,194 20,155 104,571 42,862 72,784 38,010 59,305
0 38,538 83,490 41,593 108,305
11

Total

County Name

Assessed Value

County

School

80,569 Upson

2,308,347

24,007

36,356

148,478 Walker

913,775

3,591

15,753

98,822 Walton

1,949,879

23,067

34,123

175,447 Ware

14,354,668 161,490 259,532

34,055 Warren

7,648,455

77,249 126,352

166,914 Washington

8,014,007

73,488 139,764

84,266 Wayne

15,149,703 195,431 235,578

121,037 Webster

1,606,161

24,141

20,816

62,746 Wheeler

2,435,750

22,750

26,793

89,695 White

208,836

1,650

3,460

0 Whitfield

1,073,073

2,149

18,320

87,227 Wilcox

5,543,123

85,918

69,899

121,413 Wilkes

12,221,203 121,723 155,087

82,172 Wilkinson

10,500,384 100,384 157,506

164,444 Worth

3,009,280

33,283

38,669

19 Total

593,103,112 6,184,996 8,966,486

Total
60,363 19,344 57,190 421,022 203,601 213,252 431,009 44,957 49,543
5,110 20,469 155,817 276,810 257,890 71,952 15,151,482

47

State-Wide Timber Values
(Millions)

700

634.1 618.5

This graph shows the

593.1

assessed values reported

600

555.8

by the counties and school

500

493.1

systems from timber sales

400

and harvests for the tax

years 1993 through 1997.
300

200

100

0 1993 1994 1995 1996 1997

Figure 16 1998 Legislative Report

State-Wide Timber Revenues
(Millions)

18
16
14 11.5
12
10

16.1 13.4

15.9 15.1

This graph shows the amount of timber revenues realized by counties and school systems from timber sales and harvests for tax years 1993 through 1997.

8

6

4

2
0 1993 1994 1995 1996 1997

Figure 17 1998 Legislative Report

GEORGIA APPRAISAL PROCEDURES MANUAL

Appraisal Procedures Manual
In 1997, O.C.G.A. Section 48-5-269.1 was amended to require the Commissioner to develop and maintain a procedural manual for use by county property appraisal staffs in appraising tangible real and personal property for ad valorem tax purposes.
During the last year, the Department has made excellent progress on the Development of the Georgia Appraisal Procedures Manual (APM). We already have a steadily growing working group of active Interested Parties now consisting of over 110 individuals. The Department regularly communicates via email with this "APM Group". The members are from DOR, local government, industry, homeowners, the Attorney General's Office, General Assembly and the new media. There are lawyers, CPA's, professional tax practitioners, educators and lawmakers represented.
Already we have circulated four drafts and have held three statewide public hearings. Dozens of individuals have submitted officials public comment and the hearings were attended by hundreds of individuals and broadcast over the Gerogia Statewide Academic and Medical Systems (GSAMS) teleconferencing network.
The entire process is documented on our website to allow for broad circulation and instant access by the general public. A newsgroup has been created allowing anyone with access to the Internet to post questions or offer input. The URL for the primary page on our website is:
http://www2.state.ga.us/departments/dor/ptd/cas/appman/index.html
The newsgroup is on the `news.doas.state.ga.us' server and is named `ga.dor.ptd.advalorem'.
This year we are forming six individual task forces to focus on specialized areas and seek consensus on what should be included in the manual. These task forces are composed equally of taxpayers and county representatives. Examples of issues they will address are "Economic Life Groups and Depreciation Tables", "Personal Property Return and Reporting form Revision", "Valuation of Urban Land", etc.
We have scheduled four additional drafts and three more public hearings for this year. Our plans are to have the Appraisal Procedures Manual in place by October 1, 1999.
Anyone interested in receiving updated information concerning the status of the Appraisal Procedures Manual, or would like to be added to the APM Group mailing list, may call our office at 404-656-4240. We will be happy to accommodate their request.
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SATELLITE IMAGERY PROJECT

Satellite Imagery Project
The Property Tax Division of the Georgia Department of Revenue will implement its satellite imagery project during the final half of 1999. The Department's project will consist basically of ground cover change detection using satellite imagery for the discovery of timber harvests. The pilot project's success opened the doors for the now existing satellite imagery project that will encompass the entire state of Georgia.
In 1997 the Georgia legislature appropriated funds to implement the satellite imagery project. The initiative for this approach came from the Timber industry, partly due to the response to the increasing concerns form several local governments that many timber harvests were not being reported for taxation. Many of the larger timber companies currently use satellite imagery to manage the forest growth and harvests for their companies and recommended this solution as a more effective means of monitoring harvest collections than extensive government regulation and intrusive enforcement. The timber industry joined forces with the Georgia Department of Revenue to support this satellite imagery project to improve the local tax authorities ability to tract timber harvests and to verify the accuracy of the timber harvests and to verify the accuracy of the timber harvest reports.
In early 1998, the Property Tax Division of the Georgia Department of Revenue established bid specifications for the purchase of imagery and for the manipulation of that imagery for the purpose of comparing ground cover changes from one year's images to another. The company winning the bid was Pacific Meridian Resources who has had much experience in this field.
The satellite imagery process begins through the selection of raw satellite imagery. The Department has begun the project by purchasing 30-meter imagery. Using two years of satellite data, software will be used to "subtract" the previous year's image form the current year's image. The results will be " changed polygons" that indicate areas where ground cover has changed . In order to accurately detect ground cover changes, the imagery must be adjusted for elevation distortions and the land use should also be categorized (i.e. Urban Land Cropland, Timberland, Water & Rivers, etc.).
The contract is still underway, with delivery of CD's to the counties anticipated by June 1999. We feel the cooperation between the Department, Pacific Meridian Resources and the GIS Clearinghouse will provide the counties with the most efficient and accurate means of detecting timber harvests that have not been reported and taxed.
The plan is to administer the entire project from within the Department in the following years. Therefore, in order to continue administering the project, we have recommended that funding for the use of satellite imagery for ground cover change detection be approved annually. (See the "Recommendations" Section of this report.)
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RECOMMENDATIONS

Generally, the state of property tax administration in Georgia is excellent due in large part to the dedication of the state and county staffs, however, the strain of maintaining a uniform and fair system with limited resources is beginning to show. Trends show assessment quality beginning to again deteriorate and the trend cannot be stopped without either another round of expensive revaluations in the next three years or a greater centralization of expertise that can be made available to counties. With the passage of conservation use, new digest review procedures, the development of public utility equalization ratios and the new method of timber taxation, although significant efficiencies have been achieved, the resources of the Property Tax Division of the Department have been exhausted to the point that it has become necessary to cut back severely on state provided services.
It is our impression that Georgia is not taking advantage of an opportunity to reduce the overall cost of property tax administration by centralizing certain aspects of the process. The Department believes the following improvements will significantly reduce the cost to Georgians of our system of taxation while improving the uniformity of assessments:
1. Increase the level of state appraisal expertise provided to the counties - Since the new procedure for digest review shifted the responsibility for making the necessary property revaluations to maintain uniformity from the state to the counties, we have realized this change has exceeded the resources of most counties. Assessors turned to outside revaluation companies and paid over $40 million in the few years following the passage of House Bill 1279 to upgrade their values. Unfortunately, the task of maintaining equity continues to exceed county resources and statistical analysis of sales shows uniformity again slipping.
The Department recommends the State provide more technical assistance to the counties to help them maintain uniformity of assessments. Additional field appraisers at the state level will effectively remove the necessity of counties having to turn to disproportionally expensive outside revaluation companies. The cost to the state will be a fraction of the cost to the counties and is completely reimbursed by the state's 1/4 mill levy. The constant presence of the local state experts is preferable to the roller coaster changes and politically explosive atmosphere that accompany revaluations by outside companies. This will restore stability and public confidence to the system and result in an overall tax savings to Georgians.
Georgia currently employs only 10 field staff positions for the administration of ad valorem tax. Of these 10 positions, one is
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dedicated solely to the training of tax officials and board of equalization members as required by Georgia law, and one is dedicated the majority of the time to the Georgia Appraisal Program
in demonstrating, programing and supporting the Department's low cost mass appraisal system currently used by approximately 100 counties. Of the other eight positions, most are required to also instruct training courses offered through the Georgia Certification Program for County Tax Assessors and Appraisers. These extra duties make it increasingly difficult for the staff to fulfill their regular duties, i.e., conservation use studies, public utility valuation, technical assistance to counties, digest reviews and ratio studies, timber tax administration, satellite imagery project needs, special projects that are needed from time-to-time and other various duties. As a comparison to the 10 field staff positions employed by Georgia for the administration of ad valorem tax Tennessee employs 95 positions, Florida employs 63, and Alabama employs 55.
2. Continue Funding for Satellite Imagery - For fiscal year 1998, $250,000 was funded for the implementation of Satellite Imagery as a tool for verifying timber harvests throughout the state. And although funding has been provided for continuing this project during the 1999 and 2000 fiscal year, this project is an on-going one that requires the purchase of additional imagery every year or every other year in order to compare the ground changes that have occurred. The project also demands certain computer software and hardware for providing source data to county tax officials and other agencies interested in this technology. Training to both state and county officials is also required in insuring that the use and editing of the data is accurate for the intended use. In order to maintain the project, it is recommended that continuous funding be provided the Department for this purpose.
3. Conduct Research Into Rapidly Evolving Technologies - The past year has constituted a period of impressive change toward modernization of the Revenue Department, so as to provide accurate, fair and cost effective administration of the state tax laws. A commitment has been made to provide taxpayers and county tax officials with the information needed utilizing the most up-to-date technology available. This commitment has the future possibility of enhancing compliance and providing critical information for tax policy makers and those involved in taxpayer issues, as well as providing quality customer service to all interested parties. To this means, we have developed and continue to enhance a web site as a source of communication for public information services, and communication with other agencies and county tax officials. Current usage includes access to Codes, Rules and Regulations, electronic
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data regarding property tax procedures, homestead exemptions, filing requirements, county millage rates, digest values, motor vehicle valuations, and state and county telephone and address information. In the future, we see the web site allowing for the electronic filing of public utility returns and the distribution and transfer of mass appraisal updates. The possibilities are endless. Therefore, in order to meet the requirements of O.C.G.A. Section 48-5-270 which requires the Commissioner to actively seek out technological advancements and systems that will improve the uniformity, fairness, and efficiency of property valuations and assessments and include these recommendations in the annual budget request, we recommend that general discretionary funding for research and development of appraisal technologies in the form of computer systems, data collection systems and data distribution systems using the Internet be made available.
4. Reinstate Budget Funds for Minimum Staff Supplements - Up until the early 1990's the Department's budget provided for funding of one-half of the salaries of state-required minimum appraisal staffs and special salary supplements for appraisers obtaining specialized training and proving expertise in appraisal skills. Although the statutory authority still exists, neither of these programs have been funded for the last several years. The Department believes there is benefit to be gained in reinstating the staff grants to counties to encourage proper staffing levels and assessment practices.
The Department desires to provide to the legislature all information necessary for the proper evaluation of legislative impact and implementation of property tax policies. It is hoped this report can be a tool for further understanding the state of Property Tax Administration in Georgia. The staff of the Property Tax Division will be able to provide more information or clarification of information upon request.
Respectfully Submitted,
T. Jerry Jackson Revenue Commissioner
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