Fulton County Sued Over Retroactive Homestead Tax Clawbacks
Published by Cash Flow Deals · Last updated 2026-08-05
Two lawsuits filed in Fulton County Superior Court say the county retroactively revoked homestead exemptions after a co-owner died, then billed surviving family members years of back taxes. Phyllis Garrett got a $20,000 bill. Peggy Gates paid $7,400, more than 60% of her income. Fulton says it reinstated 291 exemptions but plaintiffs say no money has been refunded yet.
| Factor | Traditional Listing | Cash Flow Deals |
|---|---|---|
| Surprise tax lien or back-tax bill | Seller must resolve county liens before closing, often at the listing's expense | Net price locked before repairs and back-tax exposure are settled |
| Time to sell while a bill is disputed | Litigation and county review can stall a sale for months | Seller can move forward without waiting on a county appeal |
| Legal and tax complexity on the seller | Seller manages attorneys, county records, and paperwork alone | Straightforward close once the seller's numbers are clear |
What the Lawsuits Say Happened
Two proposed class actions filed in Fulton County Superior Court, Garrett v. Fulton County and Gates v. Fulton County, accuse the county of retroactively pulling homestead exemptions after a co-owner dies, then billing survivors years of back taxes with no warning. Phyllis Garrett, 70, bought her home with her mother in 2018; the county registered the exemption only under her mother's name, and after her mother died, Garrett got a bill for nearly $20,000 covering 2020 through 2023. Peggy Gates, 71, was billed $7,400 after Fulton retroactively revoked her late mother's exemption in December 2023, more than 60% of her income. Fulton County says it has reinstated 291 exemptions and removed liens; the plaintiffs say no money has actually been refunded yet.
Why This Matters Beyond the Two Named Homeowners
Atlanta Legal Aid attorney Stacy Reynolds described the pattern as common practice in Fulton County, hitting lower-income Black homeowners and heirs hardest and threatening the ability to pass a paid-off home to the next generation. A surprise five-figure tax bill lands the same way a lien does: it has to get resolved before a house can sell clean. Georgia's foreclosure filings statewide were up 39% year-over-year in the third quarter of 2025, with 3,125 properties affected, according to ATTOM Data. A retroactive tax bill is one more way a paid-off Fulton County home can end up in that pipeline.
What a Homeowner Facing a Surprise Tax Bill Can Do
Fighting a county tax bill in court takes time a homeowner facing foreclosure risk may not have. A seller who inherited a home with an exemption problem, or who's carrying a back-tax bill while deciding what to do next, can request a locked net-price offer from Cash Flow Deals, a real estate investment company, before repairs or liens get sorted out. Net price gets set first. Title transfers once, directly from seller to a real buyer whose own lender funds the purchase, and Cash Flow Deals gets paid as a separate line item on the closing statement.
Common questions
Can Fulton County really send a tax bill years after someone dies?
That's exactly what these lawsuits challenge. Two Fulton County homeowners describe getting bills for $7,400 and nearly $20,000 in back taxes after the county retroactively revoked a homestead exemption tied to a deceased co-owner.
Has Fulton County paid anyone back?
The county says it reinstated 291 exemptions and removed some liens. The plaintiffs' attorneys said as of August 2025 no money had actually been refunded.
Is this only a Fulton County problem?
The lawsuits center on how Fulton County specifically applied its exemption records, and the plaintiffs argue the retroactive billing itself was improper. Whether other Georgia counties have handled exemptions the same way isn't addressed in the reporting on these two cases.
How does a tax bill dispute affect selling a house?
An unresolved lien or back-tax bill has to get cleared before a title can transfer clean, which can hold up a traditional sale for months while the county reviews an appeal.
Is foreclosure activity rising in Georgia generally?
Yes. ATTOM Data recorded 3,125 foreclosure filings across Georgia in the third quarter of 2025, up 39% from a year earlier.
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What this means for your options
Rising foreclosure filings mean more distressed inventory competing for the same buyers. The homes that sell fastest are the ones priced and positioned before that competition grows.
Wait and see
Keep the property as-is and hope conditions improve. The mortgage, insurance, and upkeep keep costing money while you wait, with no set date for things to turn around.
List with a traditional agent
Standard MLS listing, typically 5-6% in commission, and a financed buyer whose deal depends on appraisal, inspection, and lender approval — any of which can fall through after weeks on market.
Sell to Cash Flow Deals
No repairs, no showings, no financing contingency on your side — our novation structure connects you with a bank-financed buyer at a price locked at signing. A no-obligation offer, usually within one business day.
See your no-obligation cash offer before you decide anything.