The Georgia Dept. of Revenue has informed Coweta County that an additional levy of $108,173 in taxes is needed to correct property assessments the state claims are lower than the 40 percent of fair market value required by law. But the commissioners Oct. 7 decided to appeal the Dept. of Revenue Sept. 19 letter that said the county’s combined ratio was 35.94 percent. The commissioners said taxpayers should not be burdened with another tax bill unless completely necessary.

“This is not a good time to talk about increasing property values when property prices are staying the same or going down,” said County Administrator Theron Gay, noting that the county’s own ratio study indicates a higher ratio than the 35.94 percent stated in the letter and recommending that commissioners approve an appeal of the state’s position.

Property taxes are calculated on an average 40 percent of the fair market value of a piece of property multiplied by the millage rate. Based on the 2007 tax digest, the state maintains that the county’s 35.94 percent ratio “deviates substantially from the proper assessment ratio of 40 percent.” Therefore, the letter continued, “additional state tax in the amount of $108,173 is being assessed against the county governing authority.” That amount is due within five days after appeal rights have been exhausted or the final date for payment of 2007 taxes in the county, the letter said.

“Is the state saying we didn’t assess high enough?” asked Chairman Tim Higgins.

“Yes,” answered Gay, who said later that the main sticking point, from the state’s perspective, was on residential assessments.

After a brief discussion commissioners voted to approve filing an appeal of the state’s decision.

Property is assessed in categories such as residential, commercial and on large and small tracts of land. Assessment ratios are required to fall within a range of 36-44 percent of the fair market value. A 40 percent figure is the average between the two figures.

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