Ad valorem tax, more commonly known as property tax, is a large source of revenue for local governments in Georgia.  The basis for ad valorem taxation is the fair market value of the property which is established as of January 1 of each year. The tax is levied on the assessed value of the property which by law, is established at 40% of fair market value. The amount of tax is determined by the tax rate (mill rate) levied by various entities (one mill is equal to $1.00 for each $1,000 of assessed value, or .001) multiplied by the assessed value.

Several distinct entities are involved in the ad valorem tax process.

The County Tax Commissioner is an officer established by the Constitution and elected in all counties (except one).  The official’s responsibility is receiving tax returns filed by taxpayers or designating the Board of Assessors to receive them; receiving and processing applications for homestead exemptions or designating the Board of Assessors to receive and process them; serving as agent of the State Revenue Commissioner for the registration of motor vehicles; and performing all functions relating to billing, collecting, disbursing, and accounting for ad valorem taxes collected in the county.

The County Board of Assessors, appointed for fixed terms by the county commissioners, are responsible for determining taxability; the appraisal, assessment, and the equalization of all assessments within the county.  They notify taxpayers when changes are made to the value of the property; they receive and review all appeals filed; and they insure that the appeal process proceeds properly.  In addition, they approve all exemptions claimed by the taxpayer.  

The County Board of Equalization, appointed by the Grand Jury, is the body charged by law with hearing and adjudicating administrative appeals to property values and assessments made by the Board of Assessors (Note:  an arbitration method of appeal is available to the taxpayer in lieu of an appeal to the board of equalization at the option of the taxpayer at the time the appeal is filed).

The Board of County Commissioners, an elected body, establishes the budget for county government operations each year, and then they levy the mill rate necessary to fund the portion of the budget to be paid for by ad valorem tax.

The County Board of Education, an elected body, establishes the annual budget for school purposes, and they then recommend their mill rate, which, with very few exceptions, must be levied for the school board by the county commissioners

The State Revenue Commissioner exercises general oversight of the entire ad valorem tax process.  In addition, the State of Georgia levies as valorem tax each in the amount which can not exceed one-fourth of one mill (.00025).

Property taxes, along with collection of sales tax, licenses and permit fees, fines and forfeitures, and charges for services, bring in the majority of the funds used to fund the Athens-Clarke County Government.  Some of the services and benefits provided by tax collection are, administration of the county government and public school system, fire and police protection, libraries, good streets and roads, parks, and hospitals.