The General Assembly's war on property taxes kicked into high gear Tuesday when the state Senate overwhelmingly approved two measures to cap property assessments.
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The proposals, which would have to be approved by voters in November, would essentially force cities, counties and school districts to raise tax rates — rather than assessments — if they want anything more than a minimal increase in revenue.
Lawmakers say if they limit property assessment increases, they will be making it tougher politically for local officials to raise more revenue.
"Taxes ought to be visible and hard to raise," said Senate President Pro-tem Eric Johnson (R-Savannah), the sponsor of one of the bills. "Having a school board raise taxes just one mill can get a candidate beat.
"What this really does is stop the back-door tax increases. That is where the real frustration is."
The proposed constitutional amendments, which passed the Senate 53-3 and 48-7, now head to the House, where House Speaker Glenn Richardson (R-Hiram) has been promoting major property tax legislation for months.
Both Senate measures get at a common complaint about local governments and taxes. Even when cities, counties and school districts don't raise the tax rates, the assessed value of property being taxed grows. So homeowners pay higher tax bills. Lawmakers argue that raising property assessments allows city councils, county commissions and school boards to get more revenue without having to take the politically more difficult step of raising the tax rate.
Lawmakers have approved local bills in the past to freeze property assessments. However, those measures applied only to select counties.
The proposals by Johnson and Sen. Chip Rogers (R-Woodstock) would take that idea statewide. Essentially, property values could only go up minimally until a property owner sells. Then the property could be reassessed at fair market value.
Johnson's measure would apply only to homes. Rogers' would take in all property, including commercial real estate. Also, Rogers' proposal would allow counties to opt out of the restrictions in some circumstances.
While Republicans pushed the resolutions, Democrats split on the issue.
Sen. Kasim Reed (D-Atlanta), supported the resolutions. "We need to ease the burden on our homeowners. In some cases, property taxes have nearly doubled in less than a decade," he said.
"If we do not change the way property taxes are assessed, we will soon face an affordability crisis in the metropolitan region. This bill will help insure that working people can continue to live in our community."
However, Sen. Vincent Fort (D-Atlanta), opposed both resolutions, saying local governments should make taxing and spending decisions free from state government control.
The Georgia School Boards Association opposes the resolutions. Angela Palm, an association official who testified before a Senate committee against the measures, noted that school districts have 20-mill tax rate caps. Many districts are already near or at that cap, so they would be severely limited if the proposals went into effect.
Most of what school districts spend goes toward personnel — teachers, administrators, office staff, bus drivers and the like.
"There are some issues when you start limiting the amount of resources that local school boards can raise," Palm said.
The two measures are [Senate Resolution 686] and [Senate Resolution 796]

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Comments
By undecided
Apr 4, 2008 8:22 AM | Link to this
I'm, trying to make up my mind about this issue. The "identical house next door" argument makes sense. But consider this. If I bought my house 10 years ago, my mortgage is a lot lower as well. And maybe I am paying a lower or higher interest rate on my loan. If the person next door in the identical house has a higher mortgage - is that "fair"? T Also, my new neighbor's taxes will be frozen so theirs will not go up either.
By bill
Mar 11, 2008 8:29 PM | Link to this
Taxes are figured by multiplying the digest by the millage rate. If you limit or cap the digest with a freeze on assessments, and the taxes or budget goes up, guess what other figure will go up.. the millage rate will skyrocket.. if one person lives next door to you in the identical house and has lived there for the past 10 years, their assessment will be lower than your, provided your house has sold a time or two in the past. By selling, your assessment will follow the sales price whereas your neighbor will stay the same... how is this equal??? this is a penalty on people who sell or move constantly. Not only will they get a break with a smaller assessment, but the homeowner who moves a couple of times will be picking up more of the tax burden by paying a higher millage rate on a larger assessment. It is a terrible, one sided bill and it should not pass.... If put to the voters, they will only see "freeze assessed values" and of course will pass it, thinking it will keep taxes low... but guess what.. not... its' just like when the timber companies wanted the timber value taken off the digest. It was put on the ballot and the voters said.. lets given them a break,, we all pay too much now... well, all that assessed value was removed from the digest.. and guess who had to make up the difference.. you got it.. the tax payer who voted to remove the value from the digest in the first place.. shot themselves right in the pocketbook.. and this is exactly what will happen with this bill.. vote "NO" for your own sake... A word to the wise is efficient.
By ROACH
Feb 13, 2008 3:32 PM | Link to this
DO NOT LET THIS HAPPEN, IT WILL CREATE A NIGHTMARE. IT SOUNDS GOOD, BUT IT'S UNFAIR TO CHARGE ONE PERSON MORE FOR SAME GOVERMENT SERVICE THAN THE PERSON NEXT DOOR. JUST ASK ANYONE WHO HAS MOVE TO FLORDIA IN LAST FIVE YEARS.
By Smokey
Feb 13, 2008 12:48 PM | Link to this
If someone purchases a home at a certain price, they are saying that the house is worth that much. The seller pays taxes on the capital gain income generated and the buyer should pay property taxes at the FMV. Just because an assessor comes through and says that my property value has increased does not mean that my salary and ability to pay has increased. I feel that I should pay when I get the money in my pocket.
By Smokey
Feb 13, 2008 12:46 PM | Link to this
If someone purchases a home at a certain price, they are saying that the house is worth that much. The seller pays taxes on the capital gain income generated and the buyer should pay property taxes at the FMV. Just because an assessor comes through and says that my property value has increased does not mean that my salary and ability to pay has increased. I feel that I should pay when I get the money in my pocket.
By Dave
Feb 13, 2008 7:40 AM | Link to this
I can tell you one thing if you replace property taxes with a state sales tax people will be buying everything on the internet or out of state and business in this state will go down the tubes and people will start moving away from GA. Republicans tell you now everything is just about taxes you want lower taxes have lower spending as any Libertarian will tell you.
By Harry White
Feb 12, 2008 11:16 PM | Link to this
I think this is a small baby step to relieving the tax burden from the middle class. Governing boards have for years used this assessing of properties for years to raise extra revenue without openly raising taxes, but can claim to their citizens that, "they have not raised taxes". And the school board officals voicing their opposition because they have almost reach the 20 mill cap set by law. Here's an idea, spend the money wisely like all normal people do. Don't have the money, do without or find another program that is not needed and use those funds.
By Brock
Feb 12, 2008 10:30 PM | Link to this
The proponents of these bills seek transparency at the local level, by requiring county commisioners, and boards of education to raise millage publically. GA Code 48-5-311(as amended by SB 177, 1999, The Taxpayer Bill of Rights),already has accounted for this. It requires that when total assessment value of the overall tax digest in a year rises, then the local authority must advertise and hold 3 public hearings when they adopt a millage for the new year that results in a net revenue gain over the previous year. Essentially, it achieves transparency when the reassessment is not revenue neutral.
That 1999 law achieved the laudable goal of transparency without all the potential disasterous effects of the new bills, most especially lack of equity among taxpayers. But of course, SB177 was passed by Democrats, and the current majority party can make no political hay with it.
By Teddy know diving
Feb 12, 2008 10:30 PM | Link to this
GA liberal, I thought you'd moved to TAX-a-Chutes with your buddy Teddy "let me drive you home Mary Jo"?
Do us all a favor and shut the hell up! You can give ALL of your money to education if you want, no one is stopping you. But, don't ask those of us with brains to continue throwing money at a problem that government can't solve with more taxes. For the children my ***!
By GaLiberal
Feb 12, 2008 10:11 PM | Link to this
Here we go with more whining about property taxes and assessments and how it all costs too much and it's unfair. Georgia has one of the LOWEST property taxes in the country and yet we wonder why our schools consistently rank in the cellar. I know someone that recently moved here from Texas (no income tax state) and his property taxes in TX were about double what he pays now for a house that was smaller. If you don't like your taxes, then move somewhere houses are cheaper or taxes are lower. Otherwise, just shut up and pay your taxes like a good citizen does.
But to satisfy the whiners out there, let's scrap entire property tax system and replace it with a state-wide sales tax on all goods and services. Say 25%. The Georgia Legislature would then develop a fair formula to allocate this tax money to each county for schools and other necessary government purposes. While we're at it, lets scrap the state income tax system as well. I'm sure the legislature would allocate the money fairly and without regard to political agendas, favors, or ideology. So long as the counties continue to put Rethuglicons in office. But we should just trust out elected officials. After all, we did elect them.
When you vote Rethuglicon, you vote against your own best interests. And this ill-conceived political theater is living proof.
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