Property Tax Assessment Appeals represent a specialized tax-legal service that helps individuals and entities protect themselves from unjustifiably increased tax liabilities. In Georgia, property tax depends either on an individual's income or on the asset value (for companies). It is common for tax authorities to disagree with the market value of the property declared by the taxpayer and to revalue it, which automatically increases the tax and imposes penalties. In such cases, a qualified dispute based on alternative audit reports and correct legal interpretation is essential. This service allows you to refute incorrect assessments by the Revenue Service and save significant amounts.
What does this service cover?
The property tax dispute service includes:
- Analysis of Tax Audit Act: Lawyers detailly study the act compiled by the Revenue Service and the grounds for accrual to find procedural or substantive violations.
- Alternative Valuation: Collaboration with certified auditors and appraisers to establish the real market value of the property for the disputed period.
- Preparation of Complaint: Drafting a qualified complaint for submission to the Dispute Resolution Council of the Ministry of Finance.
- Court Representation: If administrative appeal does not yield results, filing a lawsuit in court and defending the client's interests in all instances.
- Tax Settlement: Negotiating with the tax authority regarding the restructuring or reduction of debt.
Common Real-World Scenarios
Typical cases where this service is needed:
- Incorrect Land Categorization: The tax authority taxed agricultural land as non-agricultural (commercial), which sharply increased the tax.
- Amortized Building: A company has an old factory on its balance sheet which is effectively ruins, but the tax authority values it as an active commercial space.
- Income Threshold: An individual was charged property tax on the grounds that their family income exceeds 40,000 GEL, but in reality, the income was less (e.g., a loan was counted as income).
- Revaluation Methodology: The tax authority used an irrelevant method for property valuation (e.g., compared it to land in the city center), which does not reflect reality.
Georgian Legal Framework
Property tax is regulated by Chapter XXIX of the Tax Code of Georgia. The Code defines the marginal rates of tax (e.g., no more than 1% of the property value for organizations). The dispute resolution procedure is outlined in Section XIV of the Code (Tax Dispute). Resolutions of local municipalities are also important, as property tax is a local tax, and the specific rate (within the legal limit) is set by the municipality. In appeals, the burden of proof is crucial — according to the Tax Code, the tax authority must prove the fact of the tax offense.
Process: How does a specialist work?
The process begins immediately upon receipt of the assessment notice. The lawyer evaluates the prospect of appeal. If a dispute is decided upon, the lawyer first applies to the Mediation Council of the Revenue Service or directly to the Dispute Resolution Council. The main tool is alternative expertise. The lawyer presents evidence that the prices used by the tax authority are inflated. The process may last several months, but filing a complaint suspends the forced enforcement of the tax debt, giving the business breathing room.
Why Legal.ge?
Tax disputes require specific knowledge where jurisprudence and finance intersect. Legal.ge features tax law specialists who have successful experience in debating with state auditors. They know the nuances of the tax system and can protect your business from unfair financial burdens. Do not pay extra — appeal incorrect assessments with professionals.
Updated: ...