Tax free in Fulton County
The number of homes that wouldn’t pay Fulton County general fund property taxes under House Bill 628 varies by commission district. There are far more tax-free homes in south Fulton and Atlanta districts (4-6) than in the three northern commission districts (1-3).
District Tax-free homes
District 1 (Johns Creek/Alpharetta) 4,266
District 2 (Roswell/Milton) 8,320
District 3 (Sandy Springs/Buckhead) 7,196
District 4 (Atlanta) 15,079
District 5 (Atlanta/College Park) 18,802
District 6 (South Fulton) 25,446
Grand Total 79,109
SOURCE: Fulton County Tax Assessor’s Office
Proposed tax breaks for Fulton County homeowners would cost the county government nearly $38 million in revenue and could shift more of the property tax burden to affluent north Fulton.
An analysis of the legislation’s impact by the Fulton Tax Assessor’s Office shows nearly 60,000 homeowners in the county’s three southern-most commission districts would pay no county general fund property taxes if state lawmakers approve a proposal to increase the homestead exemption. Less than 20,000 homeowners in the three northern districts would pay no taxes.
Supporters say House Bill 628 would grant needed tax relief and benefit homeowners, regardless of where they live.
“At the end of the day, what we’re proposing is a tax cut for everyone,” said state Rep. Brad Raffensperger, R-Johns Creek, who sponsored the measure.
HB 628 is the latest effort by Republicans in the General Assembly to rein in what they see as Fulton County’s free-spending ways. The measure would double Fulton’s regular property tax exemption to $60,000, giving a tax break to every property owner with a homestead exemption. To qualify, they must own and occupy the home.
Under the proposal, the owner of a home worth $275,000 would get a $353 tax break. The owners of homes worth $150,000 or less would pay no county general fund property taxes.
According to the analysis, the proposal would cost Fulton nearly $38 million in tax revenue annually.
Opponents say the measure could devastate funding for popular county programs.
“I hope it will not pass,” said Sen. Vincent Fort, D-Atlanta. “It will lead to cuts to Grady (Memorial Hospital), libraries, Meals on Wheels. This is not just hype.”
Forcing budget cuts is one aim of the bill’s supporters. Many north Fulton residents have said for years they pay too much and get too little for their county tax dollars. Last year’s 17 percent property tax increase rekindled those sentiments.
“I hear from constituents who work, live and play in Fulton County that they can’t afford to retire and continue to live in Fulton County,” said House Speaker Pro Tem Jan Jones, R-Milton.
But even some who are sympathetic to the bill’s intent worry it could shift the tax burden to their north Fulton constituents.
“I’m always for property tax relief,” said Sen. Brandon Beach, R-Alpharetta. “I do worry that north Fulton will be carrying the load.”
The tax assessor’s analysis suggests those worries are well founded. Under the bill, 25,466 homeowners in County Commission District 6 in south Fulton would pay no county general fund property taxes. Just 4,266 homeowners in District 1 in north Fulton would pay no taxes.
In all, 79,109 Fulton homeowners would pay no general fund property taxes under HB 628, according to the analysis.
With fewer homeowners paying property taxes, those left paying them – including the owners of commercial property and more expensive homes – could be asked to pay more in the form of a future tax increase.
“Why would a north Fulton legislator support that?” asked County Commission Chairman John Eaves. “I don’t think it’s going to pass.”
Indeed, HB 628 is stalled in the House. Monday, lawmakers tabled the bill after it failed to gain the two-thirds majority needed to pass. Raffensperger hopes it will win approval this week.
Even if it passes the House, the Senate poses another hurdle. A similar measure died there without a vote in 2013. If the homestead bill passes the House but fails to pass the Senate this year, it could still win Senate approval next year.
Raffensperger said he appreciates the concern about shifting the tax burden. But, he said, he doesn’t think the bill would favor residents in certain parts of the county because homeowners in all parts of the county would get a break. As for Fulton County’s budget, he said, it’s “quite flush” after last year’s tax hike.
“There is more than enough money over there,” he said.
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