Brookhaven’s Property Tax Increase Is a Reminder That Assessment Reviews Matter More Than Ever

Brookhaven property owners recently received news that no taxpayer enjoys hearing. The city’s recent millage-rate increase has prompted a broader question: what should property owners focus on next?

Following a contentious public meeting, the Brookhaven City Council approved increasing the city’s millage rate from 2.74 mills to 3.85 mills—representing the first change to the city’s rate since 2015. For many homeowners and commercial property owners, the increase translates into hundreds of dollars in additional annual property taxes, with city officials citing rising costs for public safety, infrastructure, and municipal services as the primary drivers. That change also raises an important issue for property owners: the assessment used to calculate those taxes.

The debate surrounding the increase has largely centered on one question: Should property taxes be increasing this much?

As a property tax advisor, however, I believe there is another question every commercial property owner should be asking: Is my property being assessed correctly?

Those are two very different conversations, and the distinction matters.

Property Tax Bills Are Driven by Two Variables

Every property tax bill is determined by two primary components:

• Your property’s assessed value
• The applicable tax rate (millage rate)

Property owners have little control over the tax rate set by local governments.

They do, however, have the opportunity to review—and when appropriate, challenge—the assessed value used to calculate that tax bill.

That’s an important distinction, especially when rates change.

When millage rates increase, every dollar of assessed value carries a larger tax consequence.

If a property has been overvalued, the financial impact of that error becomes even greater.

Higher Rates Don’t Create Assessment Problems—They Magnify Them

Many commercial properties are assessed using mass appraisal methodologies that value thousands of parcels simultaneously.

While these systems are necessary, they don’t always reflect the unique characteristics of an individual property.

For example:

• Vacancies may not be fully considered.
• Deferred maintenance may not be reflected.
• Functional obsolescence may be overlooked.
• Comparable sales may no longer represent today’s market.
• Income assumptions may not align with actual operating performance.

These issues can exist whether or not tax rates increase. However, when rates rise, those inaccuracies cost more. A valuation issue that may have seemed relatively insignificant under yesterday’s tax rate can become much more expensive under tomorrow’s.

Brookhaven Is Part of a Larger Trend

Brookhaven isn’t alone. Its experience reflects a broader pattern.

Across Georgia—and throughout much of the country—local governments continue facing inflationary pressures, increased labor costs, public safety investments, infrastructure needs, and higher operating expenses.

As municipalities evaluate budgets, many are considering adjustments to millage rates or relying more heavily on property tax revenue to fund essential services.

Whether those decisions are the right policy choice is ultimately for elected officials and taxpayers to debate. For property owners, the practical question remains simpler:

For property owners, however, the practical question is much simpler: Am I paying taxes on a fair and accurate assessment?

Commercial Property Owners Should Think Beyond This Year’s Tax Bill

One of the biggest misconceptions about property taxes is that they’re only an annual expense.

In reality, an assessment often establishes the foundation for future tax bills. When that foundation is inaccurate, the financial impact may continue for multiple years.

If an inaccurate valuation goes unchallenged, its financial impact may continue for multiple years.

That’s why assessment reviews should be viewed as part of an organization’s broader real estate and financial strategy—not simply a reaction to receiving a tax bill.

What Businesses Should Do Now

For owners of commercial real estate, industrial facilities, multifamily housing, office buildings, retail centers, healthcare properties, and other investment assets, now is an excellent time to review current assessments.

An assessment review should evaluate questions such as:

• Does the assessed value reflect today’s market conditions?
• Have changes in occupancy or income been properly considered?
• Were comparable properties valued consistently?
• Are there physical or economic factors affecting value that haven’t been recognized?
• Are there opportunities to pursue an appeal under Georgia’s property tax process?

These reviews can identify opportunities to reduce future tax liabilities while ensuring that businesses pay only what they legally owe.

The Bottom Line

News about rising property taxes naturally focuses on millage rates. Those changes certainly matter, but they also create an opportunity for property owners to revisit something equally important—the accuracy of their property’s assessed value.

While taxpayers cannot influence every budget decision made by a local government, they can ensure the valuation used to calculate their tax bill is fair, supportable, and reflective of current market conditions. That makes assessment review a practical response to changing property taxes.

As property taxes continue evolving across Georgia, that conversation may be more valuable than ever.

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