Defining Fair Market Value in Georgia

Property tax is an ad valorem tax, which means according to value.

All real property is taxable unless the property has been exempted by law. Real property is comprised of the and generally anything that is erected, growing or affixed to the land.

Each county has a Board of Assessors, which is responsible for valuing all properties on an annual basis. The Board of Assessors operates under Georgia Revenue Codes.

Property owners need to be aware of two specific codes that apply to their property:

First, all properties must be appraised at their Fair Market Value. Fair Market Value is the amount that one should reasonably expect the property to sell for under normal circumstances, i.e., neither the buyer nor the seller is under any undue pressure to sell or purchase the property. Along with Fair Market Value, the county needs to maintain uniformity. In other words, they need to treat all like kind properties uniformly.  So, just because your value seems fair based on what you can sell it for, it may still be over-assessed as it relates to uniformity. 

Second, all properties will be assessed at a rate of 40% of their appraised value for tax purposes. As an example, if the fair market value of your property is determined to be $100,000, your assessed value will be $100,000 * 40% = $40,000.

A property tax rate will then be applied to this assessed value to generate your tax bill.  These tax bills will include both the fair market value and the assessed value of the property. But the bill is calculated based upon the assessed value.

Do you want to learn more about how Commercial Property Tax Professionals can help you minimize your property tax burden? Contact their office at (678) 466-6815 or email them at