Savannah Chamber

46 Savannah Area Chamber of Commerce 2015 Economic Trends 25 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, some municipalities and the state. The Chatham Area Transit Authority levies a small tax in the City of Savannah and Garden City only. 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: $ 230,000 Fair Market Value of Residence x .40 40% Assessment Ratio $ 92,000 Assessed Value - $ 12,000 Homestead Exemption $ 80,000 Net Assessed Value 2014 Millage Rates (1) Unincorporated Chatham County City of Savannah Other Municipalities State of Georgia 0.100 State of Georgia 0.100 Bloomingdale 0.0 Public Schools 15.881 Public Schools 15.881 Garden City*** 4.000 County M&O* 11.543 City w/Transit 12.480 Pooler 4.179 Special Service District* & Transit 4.130 1.000 County M&O 11.543 Port Wentworth 4.177 Add Other Municipality **see table on right Chatham Transit 1.000 Thunderbolt 6.288 Total 41.004 Tybee Island 4.158 Total 32.654 Vernonburg 0.0 (1) From the Georgia Department of Revenue, Local Government Services Division, 2014 Georgia County Ad Valorem Tax Digest Millage Rates. https://etax.dor.ga.gov/ptd/adm/taxguide/gen/rate.aspx *Sales tax rollback of 1.131 is deducted from M&O, insurance premium rollback of 0.917 is deducted from SSD.(Net rates are reported in this table). **If you live in one of the municipalities listed in the table above, use the Unincorporated Chatham County tax rates, subtract the Special Service District rate of 4.13 and add the municipality's rate into your calculations. Add the Transit rate of 1.0 if the area is served by CAT. ***Property tax for Garden City was implemented in the fall of 2014, includes transit. Continuing with the example above, a $230,000 home with a homestead exemption would have a net assessed value of $80,000. In unincorporated Chatham County (not in a municipality), this home would have a 2014 property tax of $80,000 x .032654, which is $2,612.32. The same home located in the City of Savannah would have property taxes of $3,280.32. The City of Savannah provides services such as trash removal and recycling, water and sewer, and fire protection to city residents, while county residents pay for these services separately. 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 $230,000, then multiply the answer by $1,000. Unincorporated Chatham County has an Effective Tax Rate of $11.36, while the City of Savannah has an Effective Tax Rate of $14.26 per $1,000 of fair market value. 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. Georgia maintains its modest tax rates via a fiscally conservative government, a constitutionally mandated balanced budget and a pro-business climate. The state's maximum corporate income tax rate, 6%, has not changed since 1969.

• Cover