Republicans in the General Assembly this week renewed their fight to remake Fulton County government with two bills that could mean big tax breaks to county homeowners — and steep cuts in spending for public services.
One, House Bill 521, would allow voters to double Fulton’s basic property tax homestead exemption to $60,000. The other, House Bill 522, would provide an additional $30,000 homestead exemption for senior citizens age 70 or older who have lived in their homers for more than 10 years.
Both bills – introduced Monday – would put money back in homeowners’ pockets. Under HB 521, for example, the owner of a $275,000 house would get a $353 property tax break. The owner of a $150,000 house would pay no county general fund property taxes.
Referendums would be held on both tax breaks during the 2016 presidential preference primary.
The bills’ sponsor, state Rep. Brad Raffensperger, R-Johns Creek, is a former Johns Creek City Council member who won his seat last month in a special election. He said during that campaign he “heard loud and clear that taxpayers are tired of being taken advantage of.”
“This is tax relief for our homeowners,” Raffensperger said.
Several other Republicans co-sponsored the bills, including Speaker Pro Tem Jan Jones of Milton, a key force behind the 2013 push in the General Assembly to control Fulton’s spending.
Fulton officials have said such tax breaks could mean tens of millions of dollars in budget cuts to libraries and other popular services. Even some Republicans worry the breaks could shift the tax burden to those who own commercial properties or more expensive homes.
“It’s very attractive on the surface,” said County Commissioner Lee Morris, an Atlanta Republican. “But I think it needs a very in-depth analysis.”
The bills renew a long-running tussle between Republicans in the General Assembly and a Fulton County Commission controlled by Democrats.
Two years ago, Republicans passed a slew of bills designed to reshape a county government they see as bloated and unresponsive. Among other things, they capped Fulton’s property tax rate for two years, made it easier to fire employees and redrew commission districts to give north Fulton residents a third seat on the seven-member board.
Last year, the County Commission defied the tax cap, approving a 17 percent property tax increase. Opponents filed two lawsuits seeking to overturn the tax hike.
One lawsuit was later withdrawn. The other, filed by several Republican legislators, is still pending, but a judge gave the county a preliminary victory in the case last September.
Chairman John Eaves, a Democrat, said commissioners and legislators had begun to bridge some of their past divides. A new slate of county commissioners took office in January.
“This legislation is ill-timed and counterproductive,” Eaves said. “It goes against collegiality and partnership.”
The budget impact of the proposed tax cuts is unclear. Two years ago, a proposal to double Fulton’s regular homestead exemption passed the state House of Representatives but died in the Senate. At the time, county officials said it would cost $48 million in revenue for libraries, Grady Memorial Hospital and other popular services.
Raffensperger said he has little patience for predictions that such legislation would be a financial blow to the county. “I’m more concerned about the taxpayers, from one end of the county to the other,” he said.
Raffensperger said he’s especially worried about older residents. “We have seniors that have been in the same home for years and are having trouble staying there,” he said.
If voters approve them, the tax breaks would be phased in over two years, beginning in 2017.
At least one county commissioner – newly elected Republican Bob Ellis of Milton – isn’t worried about the tax breaks. He said the commission is already trying to cut spending. It passed a 2015 budget in January that assumes this year’s property tax rate will be rolled back somewhat this summer.
If the tax breaks pass, “we’ll just have to make whatever adjustments that requires of us,” Ellis said. “We’re trying to reduce our own expenditures over time and be more efficient so we’re in a position to provide taxpayer relief.”
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