Mayors say property assessment freeze could hurt budgets

Metro Atlanta mayors worry a state proposal to limit or freeze home values set by local tax assessors could create severe budget shortfalls for cities.

Several mayors voiced their concerns at a Tuesday lunch meeting with Lt. Gov. Casey Cagle at East Lake Golf Club in Atlanta.

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“You will be capping our one source of revenue,” Decatur Mayor Bill Floyd complained during a question and answer session with Cagle.

On Monday, state Rep. Edward Lindsey (R-Atlanta) filed legislation to put a 3 percent cap on increases in home appraisals by local governments. Another lawmaker, Rep. Kevin Levitas (D-Atlanta), has introduced a bill that would limit or cap appraisals.

Homeowners have long accused local governments of raising their home values to raise revenue without increasing property tax rates. The higher the properties are assessed, the bigger the tax bills.

In 2007, the Georgia Senate passed two proposals that would limit such hikes in property values. Earlier this year, House Speaker Glenn Richardson (R-Hiram) tried, unsuccessfully, to wipe out all property taxes that local governments, school boards and other taxing authorities collect.

But Lindsey’s bill is backed by Richardson and House Majority Leader Jerry Keen (R-St. Simons).

Several mayors expect the bill to pass. But they want caps of their own — on the kinds of properties affected by the legislation.

“I think our concern is if it’s on commercial and residential it has a much bigger impact,” said Roswell Mayor Jere Wood. “I think a lot of us expect a cap to be passed but I think there needs to be some limits on it.”

Cagle assured the mayors that the proposed legislation would not restrict how much local governments can increase the value of commercial properties.

Floyd told Cagle that if the state imposes limits or a cap on property appraisals, it should allow local governments to raise revenue from other forms of taxation.

“We don’t get one penny in sales tax revenue from the state of Georgia,” Floyd said. “If you want us to reduce our property taxes, give us access to other forms of revenue.”

The mayors want the Georgia Legislature to pass a bill allowing local governments to increase or institute their own 1 percent sales tax.

House Speaker Pro-Tem Mark Burkhalter (R-John’s Creek), another featured speaker at the event, told the mayors that if cities want to raise sales taxes they should bring the proposal to a citywide vote.

“I don’t think the state should do it for you,” said Burkhalter.