Gwinnett may lose $6 million

By Patrick Fox

The Atlanta Journal-Constitution

Gwinnett County’s attempts to issue tax statements took a slight detour Wednesday.

Commissioners assembled to set a temporary mill rate of 11.18 mills that was intended to fulfill a judge’s requirement, but they voted it down after the judge who requested it changed his directive.

The measure was proposed to comply with Superior Court Judge R. Timothy Hamil’s request Tuesday that the County Commission set a uniform mill levy before he would grant a temporary collection order for 2009 taxes.

That mill rate, agreed on in court by attorneys for the county and 14 of its 15 cities, was set at 11.18 mills.

But Hamil amended his request Wednesday and asked attorneys to draw up an order using last year’s millage rate of 10.97 for all residents. He further requested the order apply the levy against the 2009 tax digest. Hamil may grant the county’s request for a temporary collection order as early as Friday.

By using the 2009 tax digest, the county stands to collect about $6 million less in revenues than had the higher rate been approved.

Commission Chairman Charles Bannister said if a settlement isn’t worked out for a permanent mill levy to make up the difference, more budget cuts could be in the offing.

A mill levy is the number of dollars a taxpayer must pay for every $1,000 of assessed value on property. 

The county is seeking permission to issue tax notices, despite the fact it has not formally established a mill levy. That action is tied up until the county resolves a service dispute with its 15 cities.

The county had originally sought a millage rate of 10.94 for taxpayers in unincorporated Gwinnett County and 12 for taxpayers in cities. Under that proposal, city residents would have paid as much as $74 more in county property taxes on a $200,000 home.

But Hamil suggested he would not allow a two-tiered mill rate, so attorneys for the county and cities hammered out the compromise of 11.18 mills.

County tax notices usually are mailed out by mid-July, and the delay has left many local governments in a bind. Gwinnett school officials have said they may have to draw on reserves or borrow money if tax revenues are delayed much longer.