Why is my Georgia assessed value 40% of my home's value?

Georgia uses a uniform statewide assessment ratio. Under O.C.G.A. § 48-5-7, taxable tangible property is assessed at 40 percent of its fair market value and taxed on that 40 percent figure.

The math. Fair market value (FMV) × 40% = assessed value. Assessed value × millage rate (minus exemptions) = your tax bill.

• A home with an FMV of $400,000 has an assessed value of $160,000.
• If your county's combined millage is, say, 30 mills (0.030), the pre-exemption tax is $160,000 × 0.030 = $4,800.

Read your notice correctly. Your Annual Notice of Assessment shows both the fair market value and the assessed (40%) value. The 40% ratio is fixed by statute and is the same for every residential parcel in the state — you cannot appeal the ratio itself. What you can appeal is the fair market value, because lowering FMV proportionally lowers the assessed value and the tax.

FMV is defined by statute as the amount a knowledgeable buyer would pay and a willing seller would accept in an arm's-length, bona-fide sale (O.C.G.A. § 48-5-7 and O.C.G.A. § 48-5-2). That definition is the target of a value appeal: comparable sales, condition, and uniformity all bear on what FMV should be.

Uniformity angle. Because everyone is assessed at the same 40%, a uniformity appeal compares your assessed value to those of similar homes. If comparable properties carry lower assessed values than yours for equivalent homes, the assessment is not uniform — a recognized ground under O.C.G.A. § 48-5-311.

Practical takeaway: never argue the 40% ratio — it is locked statewide. Argue the fair market value, and remember that every $10,000 you knock off FMV reduces your assessed value by $4,000.