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With the recent tax rebate approved by the county for homestead exemption homes, some may be wondering how to homestead their homes.

Last week, the Troup County Board of Commissioners approved a one-time property tax rebate of $150 for homesteaded properties. The rebate will automatically appear on this year’s tax bills for homesteaded residences and will only cover the county portion of property taxes.

Many might wonder why the commissioners issued the rebate rather than lowering the millage.  

Tax Commissioner Shane Frailey said the rebate helps control who is getting the tax relief.

“If they had lowered the millage, that would have been across the board,” Frailey said. “No apartment complex is going to get $150 off for an apartment. This is not going to go towards any commercial property.”

It’s also not helping landlords.

“It goes to actual homeowners. So if you own 10 different homes, you only get it on that one homesteaded property. That’s really giving the money back to hardworking homeowners,” Frailey said.

While $150 might not seem like much, it’s likely more savings for the average homeowner than if the millage rate had been reduced. 

Frailey noted that because the tax relief isn’t being spread out among all taxpayers, homeowners are seeing greater relief. He said if the commissioners had reduced the millage by half a mill, owners of a $150,000 house would only see savings of $30.

“That’s $120 more that they are getting off their taxes,” Frailey said. 

Applications for homestead exemptions must be filed between Jan. 1 and April 1, so it’s too late to apply to get the rebate this year, but Frailey recommended doing so anyway as other discounts are available.

“It only takes five minutes and it could save you some money,” Frailey said. 

Several types of homestead exemptions are available to reduce the burden of ad valorem taxes on Georgia homeowners. The exemptions only apply property owned by the taxpayer and occupied as their single legal residence.

Once granted, homestead exemptions are automatically renewed each year and residents do not have to reapply unless there is a change of ownership or a different kind of exemption is requested.

Several homestead exemptions are available through the state. A local exemption is also available for older residents. County exemptions supersede the state exemption amount when the local exemption is greater than the state exemption. 

Troup County has such an exemption, which allows taxpayers 65 years and older with a $22,000 or less gross income, or social security disability receive an exemption of $10,000 on Local County Maintenance and Operation (M&O) and Local School Bond. Taxpayers 65 and older with a $40,000 or less gross income may receive an exemption up to $40,000 on Local School M&O.

All residents can apply for the Standard Homestead Exemption, which is available to homeowners who otherwise qualify by ownership and residency requirements. The standard homestead exemption deducts $2,000 from the 40%, assessed value of the homestead properties. The exemption applies to the maintenance and operation portion of the mill rate levy of the county and the county school system and the State mill rate levy. It does not apply to the portion of the mill rate levied for debt repayment.

The Standard Elderly School Tax Homestead Exemption is an increased homestead exemption for homeowners 62 and older where the net income from all family members residing in the homestead does not exceed $10,000 for the preceding year. This exemption applies only to school tax but it does include taxes levied to retire bonded indebtedness. The amount of the exemption is up to $10,000 deducted from the 40% assessed value of the homestead property.

The Standard Elderly General Homestead is available to homeowners who otherwise qualify and who are 65 and older where the net income of the applicant and spouse does not exceed $10,000 for the preceding year. Social Security income and certain retirement income are excluded from the calculation of the income threshold. This exemption, which is in an amount lip to $4,000 deducted from the 40% assessed value of the homestead property applies to county taxes, school taxes, and the state tax and it does apply to taxes levied to retire bonded indebtedness.

The Disabled Veterans Homestead Exemption is available to certain disabled veterans or to the unremarried spouse or minor children in an amount up to $60,000 deducted from the 40% assessed value of the homestead property plus an additional sum determined according to an index rate set by United States Secretary of Veterans Affairs.

The Floating or Varying Homestead Exemption is an exemption which is available to homeowners 62 or older with gross household incomes of $30,000 or less. The exemption applies to state and county ad valorem taxes but it does not apply to school tax. The exemption is called a floating exemption because the amount of the exemption increases as the value of the homestead property is increased. Since, however, the exemption replaces any other state and county exemption already in place for the property, taxpayers should be very careful in making application since in many instances the granting of this exemption will initially at least increase the amount of taxes levied on the property.