The deadline for filing the annual personal property tax return in Georgia is approaching. The return must be filed no later than November 1, and the calculated tax must be paid no later than November 15.
Let’s take a look at who is required to file a return and what to keep in mind before submitting it.
Who Needs to File a Return
An individual—including a sole proprietor—is required to file a return if both of the following conditions are met:
- they own taxable property within Georgia;
- the family’s income for the previous year exceeds 100,000 GEL (the new threshold that will apply when filing the return)
If there is taxable land in Georgia, the return must be filed regardless of the family’s income.
Who is considered a family member
For property tax purposes, family members include the taxpayer, their spouse, minor children and stepchildren, as well as parents, children, stepchildren, brothers, sisters, grandparents, and grandchildren who permanently reside together and maintain a joint household.
If the taxable property belongs to two or more family members, one of the adult family members may file a joint family tax return, listing all family members and the taxable property and land owned by them.
What Income Is Taken Into Account
When assessing the 100,000 GEL threshold, the income of an individual and their family members received during the relevant tax year is taken into account.
Specifically, this includes income from economic activities, other income and benefits not related to economic activities, as well as salaries that have been accrued but not yet paid “in cash”.
However, certain types of income are excluded from the calculation. For example, the Revenue Service guidelines specify the value of property received from family members through inheritance or as a gift, as well as a number of other income types listed in the document.
What Assets Must Be Declared
Taxable assets include, in particular, real estate owned by an individual—including real estate under construction, buildings, structures, and parts thereof—as well as certain vehicles and other assets listed in the regulations.
For individuals engaged in economic activities, in certain cases, assets recorded on the balance sheet as fixed assets, unregistered equipment, and leased property are also taken into account.
Separate rules apply to land. In particular, land owned by an individual, as well as state-owned land that an individual owns or uses, may be subject to taxation.
Property is reported on the tax return at market value, while land is reported based on area: non-agricultural land in square meters, and agricultural land in hectares.
An individual may determine the value of the property independently based on the estimated sale price. You can also refer to available information on market prices or consult a qualified appraiser for an evaluation.
What Period Does the Information Cover?
In the declaration, information on taxable property is reported for the previous tax year, while information on taxable land is reported as of April 1 of the current tax year.
If the return was filed last year
Before filing the tax return, we recommend that you:
- check the details of your property and land holdings in Georgia;
- determine your family’s total income for the previous year;
- check whether any information has changed compared with last year’s tax return; and
- confirm whether you are required to file a tax return this year.
Key dates:
- 1 November — deadline for filing the tax return;
- 15 November — deadline for paying the tax.
If you need assistance in determining whether you are required to file a tax return and what information should be included, REVERA’s specialists can help assess your situation.
