Fulton County officials say they will roll back last year’s unpopular 17 percent property tax hike by 2016, and they’ve already taken a first step.
County commissioners have cut this year’s tax rate by nearly 11 percent – a move that could put a little more money in homeowners’ pockets. Some commissioners say they intend to finish the rollback next year and cut spending while they’re at it.
“This is a good first step,” County Commissioner Liz Hausmann told The Atlanta Journal-Constitution. “I think we’ll continue to reduce expenses the rest of this year.”
This year’s tax cut will create a $74 million hole in next year’s budget. Supporters say the county can cut taxes and spending without affecting popular services. But others fear services will be reduced.
“In my district, people are telling me that their tax bill is too low,” Commissioner Marvin Arrington told his colleagues as they debated the tax cut. “What people want to know is, when are the services going to be provided? What services are going to be provided? Are they going to be provided in a timely fashion?”
At their July 15 meeting, commissioners voted 5-2 to cut this year’s general fund tax rate – which pays for countywide services like libraries, courts and social services – from 11.781 mills to 10.5 mills. That would save the owner of a $275,000 house about $102 this year, assuming the home was worth the same as last year.
But residential property values this year rose nearly 10 percent overall in the county and much more in some areas, tax records show. If that $275,000 house gained 10 percent in value from last year, the owner would pay about $13 more in general fund taxes this year, even with the lower tax rate. And that’s not counting school and city taxes, which also could increase.
Still, Commissioner Bob Ellis said Fulton’s tax rate is headed in the right direction.
“Not every taxpayer’s going to be happy with it,” Ellis said. “Overall, it’s a pretty health rollback.”
Just a year ago, the commission voted 4-3 to raise the property tax rate for the first time since 1991, saying the move was needed to protect vital services.
That prompted two lawsuits seeking to overturn the tax hike. One has been withdrawn. The other is still pending, though last September a judge gave the county a preliminary victory.
But politics may accomplish what lawsuits have not. In 2013, the General Assembly re-drew county commission districts, and last year’s elections gave north Fulton Republicans a third seat on the seven-member commission. All three Republicans pledged to repeal the tax hike during last year’s campaign.
The new commission that took office in January has made government efficiency a priority. The county has several initiatives designed to streamline its bureaucracy.
County Manager Dick Anderson believes those initiatives will allow him to close the projected $74 million budget gap without jeopardizing services.
Others are skeptical. Arrington and Commissioner Emma Darnell voted against the tax cut. In a recent newsletter, Darnell warned constituents the tax cut will lead to reduced library hours and less money for senior services, the arts and other programs.
“I am concerned that the millage rate adopted by the Board of Commissioners does not adequately take into account the interests of all the taxpayers of Fulton County, irrespective of zip code,” Darnell said.
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