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76 Savannah Area Chamber of Commerce 2020 Economic Trends 26 Infrastructure: Taxes Savannah / Georgia Tax Summary Real and Personal Property Tax Taxes on real and tangible personal property are levied by the city, county, school district, and some municipalities. The Chatham Area Transit Authority levies a small tax in the City of Savannah, unincorporated Chatham County, and small parts of Garden City. Georgia law requires that the fair market value be determined on all property to be taxed. Millage rates are applied to the assessed value, which is 40% of the fair market value. Owner-occupied homes are allowed a homestead exemption; Chatham County has a homestead valuation freeze exemption. The following table shows how to calculate the taxable value (net assessed value) of an owner-occupied home: $ 250,000 Fair Market Value of Residence x .40 40% Assessment Ratio $ 100,000 Assessed Value - $ 2,000 Homestead Exemption $ 98,000 Net Assessed Value 2018 Millage Rates (1) Unincorporated Chatham County City of Savannah Other Municipalities** State of Georgia 0.000 State of Georgia 0.000 Bloomingdale 0.0 Public Schools 18.881 Public Schools 18.881 Garden City 3.690 County M&O* 11.543 City w/Transit 12.856 Pooler 3.754 Special Service District* & Transit 4.911 1.150 County M&O 11.543 Port Wentworth 4.160 Add Other Municipality **see tables on right Chatham Transit 1.150 Thunderbolt 6.148 Total 44.430 Tybee Island 3.931 Total 36.485 Vernonburg 0.0 (1) From the Georgia Department of Revenue, https://www.chathamcountyga.gov/Government/PropertyTaxRates *If you live in one of the municipalities listed in the table above, use the Unincorporated Chatham County tax rates, eliminate the Special Service District rate and add the municipality's rate into your calculations. Add the Transit rate of 1.15 if the area is served by CAT. Continuing with our example above, a $250,000 home with a homestead exemption would have a net assessed value of $98,000. In unincorporated Chatham County (not in a municipality), this home would have a 2019 property tax of $98,000 x .036485, which is $3,576. The same home located in the City of Savannah would have property taxes of $4,354. The City of Savannah provides services such as trash removal and recycling, and water and sewer to city residents, while county residents pay for these services separately. Chatham County residential property owners benefit from a homestead valuation freeze exemption, which effectively raises the homestead exemption the same amount that the property appreciates. There is no increase in residential property taxes until the sale of the property, at which point a new basis is established. Some find it useful to compare real and personal property taxes using an Effective Tax Rate per $1,000 of fair market value. To find this rate, divide the property tax on the home listed above by its fair market value, which in this case is $250,000, then multiply the answer by $1,000. Unincorporated Chatham County has an Effective Tax Rate of $14.30 per $1,000 of fair market value, while the City of Savannah has an Effective Tax Rate of $17.41 per $1,000 of fair market value. Georgia maintains its modest tax rates via a fiscally conservative government, a constitutionally mandated balanced budget and a pro-business climate. Beginning in 2019, the state's maximum corporate income tax rate lowered to 5.75% after having been 6% since 1969.