Of all the Fulton County property tax exemptions available for taxpayers, the homestead exemption is arguably the most beneficial. This is because applying it to your property tax is relatively easier and faster than most exemptions, not to mention that its deductions can be substantial. Here are the things that you must know about homestead exemption – what it is, what its qualifications are, and its amounts are.
Basically, a homestead exemption represents a reduction in the homeowner’s/taxpayer’s property taxes for the applicable year. Your annual notice of assessment, property tax record, and property tax bill will reflect the type of homestead exemption for which you qualified under the law. In fact, you can file a Fulton County property tax appeal on the ground of denial of exemptions, including the homestead exemption.
You can apply for the applicable homestead at any time of the year. But emphasis must be made that your application must be filed between January 1 and April 1 for the homestead exemption to become effective for the current taxable year. For example, when you file your homestead exemption application after April 1, 2016, your property tax records will be updated for the exemption in the following year (i.e., 2017).
While there are several types of homestead exemption, Fulton County rules that for all homestead exemptions, you have to be the owner and actually reside in the property on January 1 to quality for it. Failure to comply with any or all of the basic criteria will mean disqualification for the homestead exemption for the applicable taxable year.
Under Fulton County property tax laws, the home covered by the homestead exemption should be your legal residence for all intents and purposes. This means that it is the address listed on your legal documents, such as your vehicle registration and income tax returns. You cannot claim homestead exemption on vacant land, on rental property, or on more than one property.
Once your homestead exemption application has been approved, you need not apply for it every year (i.e., automatic application). But you have to reapply for homestead exemption under a few circumstances, such as change in property ownership or relocation to another property that will be considered your primary residence.
You will obviously enjoy tax savings benefits from a homestead exemption. Keep in mind that a homestead exemption will ultimately reduce your property tax bill that, in itself, is already a valid justification for hiring a tax consultant to look into the matter of homestead exemption denial.
The actual assessment deduction that you can enjoy will depend on several factors including the type of homestead exemption and the location of the applicable property. Studies have shown that you can save about $600 in annual property tax for a basic homestead exemption when your primary residence is in unincorporated Fulton County. But when you live in the City of Atlanta, you can save as much as $1,200 on annual property tax on average for a basic homestead exemption, too.
The actual amount for the homestead exemption will vary, too. For the basic exemption in the City of Atlanta and Fulton County, it is $30,000 while the statewide school tax exemption is $10,000. Each type of exemption has its set of eligibility requirements so you should study the requirements of each to determine if you qualify. You should apply for as many Fulton County property tax exemptions as you are eligible for.
