Gwinnett residents will escape a county property tax increase for the third consecutive year after the Board of Commissioners on Tuesday voted to keep the county tax rate at its current level.
The decision means many residents will see their county tax bill shrink as the value of their property continues to decline. Declining property values and a stable tax rate also will mean $14.8 million less revenue for the county general fund, which pays for police and fire protection and other key services.
But Chairwoman Charlotte Nash said county commissioners anticipated the decrease in revenue when they approved this year's budget in January. They balanced the operating budget in part by freezing vacant police and fire positions, but left county services largely intact.
The current operating budget for fiscal 2012, which began Jan. 1, is $913.1 million. The tax rate is typically set this time of year.
Local governments rely heavily on property taxes to pay for core services. Generally, the more real estate is worth, the more money governments collect.
Property values have plummeted in the wake of the Great Recession, and many governments have trimmed spending and raised tax rates to balance their budgets.
Gwinnett County last raised its property tax rate in 2009, when commissioners increased it 21 percent. That angered many residents but pleased credit rating agencies, which have cited the move in awarding Gwinnett their top ratings.
Other metro Atlanta counties — including Cobb, DeKalb and Clayton — also have seen big tax increases in recent years.
Gwinnett County commissioners rejected a staff proposal to raise the tax rate — currently 13.02 mills — by 6 percent this year. That would have more than offset declining property values, boosting tax revenue by $3.7 million. It would have cost the owner of a $170,000 house an extra $45.24 in property taxes.
Commissioners voted unanimously to keep the tax rate the same.
At a rate of 13.02 mills, the owner of a $170,000 home will pay about $761 in county taxes this year, the same as last year. But if their home value declined, they would see a decrease in their tax bill.
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