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Board denies tax appeal from Mike's Cafe buyer who paid prior owner's delinquent personal property taxes
Summary
The board denied an appeal seeking refund of interest and penalties after a buyer of a business paid delinquent personal property taxes assessed to a prior owner; county staff cited state law that personal property taxes "follow the assets."
The Henry County Board of Commissioners denied a refund request from a business owner who paid delinquent personal property taxes and sought waiver of interest and penalties.
Deputy Tax Commissioner Lynn Carty explained that Ms. Martha Hernandez, who bought the business operating as Mike's Cafe, paid outstanding personal property taxes that were delinquent from the prior owner. Carty cited state code (OCGA 45-5-1 and 45-5-2), saying tangible personal property used in a business is subject to annual ad valorem tax and that taxes can follow assets, making buyers responsible unless addressed at purchase.
Hernandez told the board she bought the restaurant using a notary rather than a closing attorney, said paperwork and tax notices had remained in the prior owner's name, and stated she did not know about the outstanding amounts until the tax commissioner's office notified her in 2023. She said she paid the assessed amount and asked the board to refund interest, penalties and fees totaling $1,765.40.
After the public hearing and brief questions, a motion to deny the refund request carried unanimously. The motion as read for the record referenced the refund amount of $1,765.40, which included interest, penalties and a $30 fee. County staff noted that buyers are expected to conduct due diligence when purchasing business assets and that the tax office does not waive interest and penalties in such situations.
