Homestead Exemption

This week, I'll be sending out my annual Homestead Exemption letter to remind all my clients who purchased homes during 2012 to register for their Homestead Exemption. To understand more about the Georgia Homestead Exemption and learn more about your qualifications for the Exemption, visit the Georgia Department of Revenue website or call Sara Hibbard for more information at 404-660-2481. What Is The Homestead Exemption? Generally, a homeowner is entitled to a homestead exemption on their home and land provided the home was owned by the homeowner and was their legal residence as of January 1 of the taxable year. Application for homestead exemption must be filed with the tax commissioner's office, or in some counties the tax assessor's office has been delegated to receive applications for homestead exemption. A homeowner can file an application for homestead exemption for their home and land any time during the calendar year. To receive the homestead exemption for the current tax year, the homeowner must have owned the property on January 1 and filed the homestead application by the same date property tax returns are due in the county. Property tax returns are required to be filed by April 1. Homestead applications that are filed after this date will not be granted until the next calendar year. Exemptions Offered by the State and Counties The State of Georgia offers homestead exemptions to all qualifying homeowners. In some counties they have increased the amounts of their homestead exemptions by local legislation above the amounts offered by the State. As a general rule the exemptions offered by the county are more beneficial to the homeowner. Homestead Exemptions Offered by the State Standard Homestead Exemption The home of each resident of Georgia that is actually occupied and used as the primary residence by the owner may be granted a $2,000 exemption from state, county and school taxes except for school taxes levied by municipalities and except to pay interest on and to retire bonded indebtedness. The $2,000 is deducted from the 40% assessed value of the homestead. The owner of a dwelling house of a farm that is granted a homestead exemption may also claim a homestead exemption in participation with the program of rural housing under contract with the local housing authority. Individuals 65 Years of Age and Older May Claim an exemption from state tax on their home and 10 acres of land surrounding the home Individuals 65 years of age or over may claim an exemption from all state ad valorem taxes on their home and up to 10 acres of land surrounding the home. Ad valorem tax for state purposes will be due on the assessed value of land that exceeds the 10 acre limitation. Individuals 65 Years of Age and Older May Claim a $4,000 Exemption Individuals 65 years of age or over may claim a $4,000 exemption from all state and county ad valorem taxes if the income of that person and his spouse does not exceed $10,000 for the prior year. Income from retirement sources, pensions, and disability income is excluded up to the maximum amount allowed to be paid to an individual and his spouse under the federal Social Security Act. The social security maximum benefits for 2012 is $60,792. The owner must notify the county tax commissioner if for any reason they no longer meet the requirements for this exemption. Visit https://etax.dor.ga.gov/ptd/adm/taxguide/exempt/homestead.aspx for additional Exemption opportunities. Sara Hibbard is a licensed Realtor in the state of Georgia. Sara enthusiastically represents buyers and sellers of residential real estate in the north Atlanta metro area. Contact Sara Hibbard with all your real estate questions regarding the Atlanta metro real estate market in general or specifics regarding the relocation / buying / selling process. Sara is easily reached at 404-660-2481. Sara Hibbard is Glad Georgia Real Estate is on Your Mind!