Oh please! Not again. Sorry, but it is a never ending saga.
Our neighbors in Fulton County are in a bit of a snit over what they see as unfair treatment of homeowners vs commercial property owners as it relates to assessments. They have observed that homeowners are assessed based on comparable sales, while commercial real estate assessments are calculated by other means, often resulting in under-assessment of these properties. Not surprisingly, the homeowners assert this means under-payment of property taxes by commercial property owners.
Do they have a point?
Yes, they do. Despite what our head cheerleader would like you to believe there is quite a bit of turnover in the residential real estate market making comparable-sales assessments not only possible, but also the most reasonable method of assessing market value.
Commercial properties do not see that kind of sales turnover and the businesses that own them would balk at that form of assessment anyway. Businesses view these properties, these buildings, as assets, and for business and tax purposes, assets depreciate, representing the fact these service life of an asset and the need to replace it. Helps explain why they love the occasional teardown and rebuild. Plus, local governments will shield these "re-developments" from any taxes for a few years, allowing for that depreciating assets algorithm to kick in.
The folks in Fulton have observed that when commercial properties do go on the market and do sell, they often command a market price twice or more than the county's assessment. Anything else would be man-bites-dog headline news. It turns out this isn't just Fulton, but DeKalb as well, and we have an existence proof very close to home. Prior to selling to the city, the owners of the building that is now city hall, were appealing the counties assessment of $2M. Before the appeal was resolved they sold that very same property to the city for $4M. For all the time these properties are not assessed in the same way your home always has been the commercial property owners have been carrying one half the tax burden you bear. The next time some soft-brained adultling whines that apartment dwellers pay the "full tax" you might try reminding them that apartments are commercial properties.
You might also remember, at the ballot box, how this city has bent over backwards for commercial properties, and their propaganda notwithstanding, they have done little for you. After all, have you heard of the mayor or anyone on council reaching out to the county to create an assessment process that more accurately marks commercial properties to true market value? No? Well, have you heard any of them dismissively point out it is the county, not the city that assesses property? Thought so.
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