If it did not arrive last week, Whitfield County property owners should expect to receive in the mail this week a real estate assessment. Those assessments will feature an average increase of 22% for residential and 15% for commercial/industrial property, according to the Whitfield County Assessors Office.
"I believe this digest is fair and equitable," Ashley O'Donald, chief appraiser of the Whitfield County Assessors Office, said in a news release. "However, you may disagree with your assessment. My staff is ready to assist you, whether you simply want an explanation regarding your value change or would like to file an appeal of your value."
Based on that new assessment, a property owner's estimated tax bill will increase, O'Donald said. However, in August, millage rates will be rolled back to "reduce or eliminate the impact on people's pocketbooks," Jevin Jensen, chairman of the Whitfield County Board of Commissioners, said in a news release.
"It is very disappointing the Board of Assessors chose a 22% countywide increase of residential property values since inflation is at a 40-year high," Jensen said. "Housing prices have spiked but are likely to ease over time as interest rates rise and the likelihood of a recession increases."
The inflation of home prices is "artificial," he said, adding that new home sales are starting to slow and home building material prices are decreasing, too. The market is correcting itself, Jensen said, and based on that, he encouraged the assessor to approve a smaller increase in assessments than the independent government body finally chose.
The date of property assessment was Jan. 1, 2022, and based on the previous year, O'Donald said. The recent increase in interest rates had no effect on the assessment, he said. However, housing market sales trends through June 1 have shown no change.
(READ MORE: Hot real estate market affects property values in North Georgia counties)
"This is the most bullish market I've seen in my 20-plus years in the assessment business. The market has soared," O'Donald said, attributing the increase to a lack of available housing, low interest rates, increased construction costs and high rental prices.
"Any taxpayer who feels like the assessed value is incorrect, I encourage them to come to the office and speak to appraisal staff, or call us, or use our online appeals module," O'Donald said in a follow-up phone interview.
Property assessment appeals can be filed until Aug. 15, he said.
On the assessor's site, O'Donald said, taxpayers can compare their property's assessed value against comparable properties that have recently sold - evidence that can be used to appeal property assessments.
Another concern Jensen raised is that the residential and commercial assessments were not increased at the same rate, and "that creates a math problem because I have to roll back everybody's [millage] rates - no matter if you're residential or commercial - at the same amount."
If the commission has to roll back millage rates to account for the increases in property assessment - a 22% average, but up to 30 to 40% for some people, he said in a follow-up phone interview - that leads to a tax reduction because businesses had a smaller assessment increase.
Jensen said he is working for a change in Georgia law that will fix this issue.
"We're going to work on something that will give us more capabilities to individually roll back assessments, but it's not legal the way the law is written right now," Jensen said. "But we're working with our state legislature and hope to have a solution that the voters will have to approve and the state legislature will have to help me with."
That plan should be brought to the public for feedback in about 30 days, and he said it could be passed and in place for next year's property assessment. His broader goal is comprehensive property tax reform that Jensen said he will advocate for when the General Assembly meets in early January.
(READ MORE: Walker County will host public hearings about reduced millage rate)
When asked about reducing pressure in the housing market, Jensen said there's plenty of development underway in the county, but it will take time for the new housing to reach the market. With the supply improving and higher interest rates tamping down demand, he said he thinks the housing market will "moderate next year."
Contact Andrew Wilkins at awilkins@timesfreepress.com or 423-757-6659. Follow him on Twitter @tweetatwilkins.