The Gwinnett County Board of Commissioners on Tuesday voted to maintain the county’s property tax rate at 6.95 mills, and most homeowners will not see an increase in the amount paid to the county despite rising home values because of the value offset exemption.
The value offset exemption freezes the taxable value of homeowners’ properties the year they become eligible, which is the first Jan. 1 they own and live in their homes. It applies to the home and up to five acres of land.
However, commercial land owners and those who own rental properties could see a tax increase because the value offset does not apply to them.
Ray Lunsford and his wife, who own six rental properties in the county, told Gwinnett commissioners during a public hearing on Tuesday that keeping the millage rate the same would cause rent increases for their tenants.
“These people who live in these rental properties, all of them are on fixed incomes,” he said.
Lunsford wanted to avoid having to tell his tenants that they would be getting another tax increase, as he did three years ago, he said.
“Because I can’t afford to pay it, they’re going to have to pay it,” he said.
Property owners who are eligible for the homestead exemption automatically get the value offset exemption.
This year, those who are qualified for the homestead exemption, are eligible for the state’s homestead tax relief grant. Gov. Brian Kemp and state legislatures approved the grant that provides a credit on tax bills, for those who qualify for the homestead exemption, equivalent to an $18,000 reduction in assessed value.
“We estimate the credit for the average Gwinnett homestead at $143 for the county portion of their taxes,” Buffy Alexzulian said at Tuesday’s public hearing.
Property taxes are based on the millage rate set by the county government, schools and cities. One mill equals a dollar tax per $1,000 of assessed property value.
In June, The Atlanta Journal-Constitution reported that maintaining the millage rate will generate an additional $18.5 million in revenue compared to what the county budgeted in January, according to Alexzulian, with rental and commercial property owners mostly paying the difference.
Gwinnett County Chairwoman Nicole Love Hendrickson said, although she hears resident’s concerns about housing affordability, it is also to remember the millage rate help fund county services.
“Holding the rate the same as last year allows us to continue delivering the high-quality services residents expect and deserve while avoiding placing an undue burden on Gwinnett homeowners facing a tight economy,” Love Hendrickson said.
Property tax bills will be mailed in August and payments will be due in October, county officials said.
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