Watching your tax dollars
The Atlanta Journal-Constitution has been following discussions of a possible Fulton County tax increase for more than a year. It also has covered debates in the General Assembly about reining in county spending. Last fall the AJC’s own investigation found Fulton County spends more on some key services than surrounding counties. But the newspaper found Fulton spending in most areas examined was in line with comparable urban counties across the country.
Two state legislators are urging Fulton County residents who are against a 17 percent property tax hike to contact the County Commission to voice their opinions, and opposition leaders say a lawsuit is likely if the increase is approved.
On Wednesday, County Commissioners will try to take the first step in the process of approving Fulton’s first countywide tax hike since 1991. The increase would cost the owner of a $275,000 home an extra $140 a year.
The legislators, who have long complained Fulton County spends too much, say the tax hike would violate a Fulton County property tax cap imposed by the General Assembly last year. They’ve urged constituents to contact Commission Chairman John Eaves to express their opposition and say hundreds have responded.
“I think the message is being delivered very succinctly that this would not be a wise course of action for the Fulton County Board of Commissioners to take in defiance of state law,” said Rep. Lynne Riley, R-Johns Creek.
The chairman’s office said the issue has not generated more public interest than other significant issues that come before the commission. Eaves said he won’t be swayed by what he called “an orchestrated attempt” to influence the commission vote. He said the tax increase is needed to protect popular services.
“We haven’t increased our millage rate for many years. We don’t get any credit for that,” Eaves said. “Our backs are against the wall in terms of providing quality services.”
Many residents of predominantly Republican north Fulton have long believed they get little in return for their county tax dollars. Responding to those concerns, Republicans in the General Assembly last year passed a law that prohibits Fulton from raising property taxes until 2015.
Last summer, the Democratic-led commission passed a resolution repealing the tax cap, citing their home rule powers under the state constitution. In January, they approved a 2014 budget that assumes they will raise the tax rate. They will vote Wednesday on advertising the new tax rate and scheduling several hearings to solicit public feedback. A formal vote to approve the tax increase would be scheduled for July 9.
It’s the second time commissioners will vote on advertising the tax rate. Two weeks ago, with some commissioners absent, the measure failed to get enough votes. Eaves said he’s confident it will pass Wednesday.
State Sen. John Albers of Roswell said he’s heard from more than 1,000 tax opponents who have contacted the county.
Vesta Smith of Alpharetta said she thinks Fulton should cut spending instead of raising taxes.
“If all the different departments would stop mismanaging their funds, they would have plenty of money to handle things,” Smith said. “There’s too many hands in the pot on every level of government.”
A spokesman for Eaves’ office said the chairman had received calls and e-mails, but didn’t know how many.
Commissioner Bill Edwards, who is open to a tax increase if it’s needed, said no constituents have contacted him in recent days about the tax hike. Commissioner Liz Hausmann, who opposes an increase, said she’s heard from many constituents.
“I haven’t gotten one where they said, `We understand your predicament, and it’s OK to raise my taxes,” Hausmann said.
Eaves said many residents oppose tax increases but also complain when the county cuts services. Budget cuts this year led Fulton to close most libraries one or two days a week, and many residents have objected. Residents also have opposed cuts to Grady Memorial Hospital and arts programs.
“We are a tremendously diverse county with a wide range of services,” Eaves said. “They cost money.”
Fulton wouldn’t be the only local government to raise property tax rates in the wake of the Great Recession. As property values plummeted, Cobb (16 percent), DeKalb (26 percent) and Gwinnett (21 percent) all raised tax rates to generate more revenue.
But Fulton’s budget has drawn more scrutiny, and its tax hike might face a legal challenge.
“What’s going to happen if they proceed with this is millions of dollars will be spent in the courts,” Albers said.
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