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Committee advances permissive market-assessment option letting counties use purchase price as assessed value
Summary
Representative Washburn presented a permissive resolution that would let counties opt to set assessed value at purchase price for all property types, with reassessment allowed for renovations over $50,000. Members raised concerns about institutional investors and valuation methods; the committee advanced the measure.
A Georgia subcommittee advanced House Resolution 250 (LC280648), a permissive measure that would allow counties to use the property's purchase price as the assessed value and maintain that assessment until the property sells again.
Representative Washburn, who presented the resolution, described it as an "option" for counties and said it would apply to all types of property, not only homestead properties. "The option is they can choose a system in which the purchase price becomes the assessed value and is on all types of property not just homestead," Washburn said.
Washburn said the bill includes a mechanism to allow reassessment if value increases due to major renovation or addition exceeding $50,000. Members probed whether the approach would disadvantage individual homeowners if institutional investors held properties long-term. Representative Kelly voiced concern that institutional investors buying neighborhoods could shift burdens to individual homeowners; Washburn said he did not share that concern and preferred to keep the bill permissive.
Committee members also discussed technical valuation options if rentals were assessed by income: Washburn suggested a 12% capitalization rate or a gross rent multiplier of 5 as possible approaches if the committee adopts rent-based guidance.
Following discussion, the committee moved and seconded the measure, recorded ayes by voice and advanced the resolution for further consideration. The transcript records no roll-call tally or a statewide fiscal estimate in committee.
The presentation drew multiple members’ comments asking for follow-up on policing non–arms-length transactions, potential local qualification safeguards, and the interaction with other pending legislation that addresses residential assessments.
