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Understanding personal property assessments (Part 2)
Last week I began the recap of the Early County Tax Assessor’s explanation of personal property assessments. On September 14, the following information was shared by Shauna Jordan to the Development Authority of Early County Board of Directors and public.
For assessment purposes, January 1 is critical. Generally, property owned and in place as of January 1 is what is considered for that tax year. For example, if a business purchases equipment and does not place it into service until January 8, 2026, that equipment would generally become part of the following year’s reporting rather than the January 1 valuation.
The same basic January 1 principle also applies to real property. Business personal property returns are then generally due by April 1.
Another important thing to understand about personal property is that it depreciates or loses value over time. Personal property is very different from land or a commercial building. Machinery, equipment, computers, servers, furniture and similar assets lose value as they age.
The purpose of “depreciation schedules” is to recognize that loss of value over the useful economic life of the asset. Even relatively new equipment begins moving through the applicable depreciation schedule. After determining the depreciated value, Georgia’s assessment ratio is then applied.
In Georgia, taxable property is assessed at “40% of fair market value” before the applicable millage rate is applied. The steps for determining the property tax involve the original asset cost, the depreciation schedule, assess the value, apply the millage rate and the result is the property tax.
Businesses are also not required to replace equipment simply because it reaches the end of an estimated economic-life schedule. A business may continue operating an older piece of machinery for many years. If it continues to own and use that equipment, the equipment may remain on its asset list but at a significantly depreciated value.
Shauna added: “I’ve seen businesses with equipment that has been in service for decades. At that point, the taxable value associated with that particular asset can be very small. The business has the right to continue using that equipment as long as it remains useful.”
This becomes especially important when trying to forecast future tax revenue from a large industrial or technology project. Different pieces of equipment can be purchased in different years and placed into different depreciation groups. One phase of a project could be in its first year while another phase is in its fourth year.
A large development may also contain multiple businesses or tenants. For example, in a co-location data center, multiple tenants could potentially own equipment within the same building. Those businesses may replace equipment at different times and may have separate personal property reporting obligations.
That makes it extremely difficult to take the total announced investment of a project and calculate one simple, fixed personal property tax number that will remain constant year after year. The value can change significantly as equipment ages, depreciates, is replaced, added, or removed.
Another important point made by the Tax Assessor is that her office does not simply decide what a business’s personal property should be worth. Businesses file detailed returns identifying their assets, additions and deletions. The Assessor’s Office reviews and processes those returns according to Georgia law and applicable depreciation schedules.
“The office has the authority to ask questions and, when appropriate, conduct audits. However, personal property assessment is governed by state requirements,” stated Shauna. “It is not a negotiable number simply determined locally. There are checks and balances throughout the process and businesses are responsible for accurately reporting their assets.”
Additionally, Shauna stressed that one of the most important points for local officials and residents to understand is that “personal property investment and taxable value are not the same thing.”
A company may make a very large investment in machinery, technology, servers or equipment, but those assets are subject to depreciation according to their economic life.
Some equipment may be replaced frequently. Other equipment may remain in service for decades. In a large, phased development, multiple generations of equipment could be operating at the same time and at very different points in their depreciation schedules.
That is why forecasting personal property revenue, particularly for a very large industrial or technology project, can be complicated .
Before ending her explanation of personal property assessments, Shauna welcomed the Development Authority Board of Directors and others to visit her office. She is happy to answer questions and help explain the assessment process. She concluded with: “We want taxpayers, businesses, local officials, and the public to understand how the system works and what Georgia law requires.”
The Development Authority and I greatly appreciate Shauna sharing this information and her knowledge to help us all understand the role and responsibility of the Early County Tax Assessors Office.
Published in the Early County News on September 30, 2026.
