My Property Tax went Up?
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I am hearing from people who are surprised that their property tax bill is higher this year. After all, they say, didn’t we keep Gwinnett County from raising our taxes?
Technically the tax increase proposed by the Commissioners was not voted down – it was just never voted for. The Commissioners passed a budget back in March that required a large increase in property tax revenue to make it work. When they started to vote for the increase the citizens complained, so they backed off and didn’t set a tax rate at all. Instead they went back and tried to adjust the budget. The process dragged on and on, but the Commissioners could not come up with a tax rate – so the County went to Court and asked a judge to set the rate, requesting an increase over last year’s rate. The judge refused to take the hit by setting the rate himself (it is really the Commissioners job anyway) and sent it back to the Commissioners. But again the Commission could not agree on the rate, so the judge left it the same as last year and a temporary tax bill (the one you are now holding in your hands) was sent out.
The rate is temporary because it is the Commissioners who have to come up with the final tax bill. But the school system and others who live off revenue from property taxes just couldn’t wait any longer and so something had to be done.
So – my bill should be the same as last year?
You would think that, but no. By the time the tax bills went out all of the property values had been adjusted for 2009. The failing economy (most importantly home prices) meant that most of the appraisals were lower in 2009 than they were in 2008. The final tax you pay is computed by multiplying a tax rate (Millage Rate) by a percent of the property value. When the judge ordered a bill to be sent out with last year’s millage rate the County realized that the actual revenue it received would be lower, but there was no time to go back and change all of the appraisals in their computer system to match last year’s higher values. With the property values reduced, the County will actually get $6.2M less revenue than last year.
So – are you saying my bill should have been lower this year?
Well, it should have been, but, again, no. For years, the State has been offering a credit to Georgia property owners called the Homeowners Tax Relief Grant which resulted in a reduction of as much as $275 in your property tax. But with funds drying up governments are scrambling to find money, and so this year the State dropped the program. This was really a subsidy for property owners that came from other tax revenues, and in my opinion it is better to have it out in the open and paid for by individual property owners – but it is still a shock to see the increase.
Also realize that the portion of your property tax that goes to pay for the County Government is less than 40% of your total tax bill. Most of the bill goes to pay for the Gwinnett County Public School System. Here is the breakdown from my personal tax bill:
School Taxes 64%
GA State Taxes 0.8%
Stormwater Fee 1.2%
County Taxes 34%
So – can I appeal my tax bill?
You should know the answer by now. The only appeal homeowners have is to appeal the valuation of their property. Unfortunately that needs to be done at the first of the year, and at this point there is nothing you can do until the County starts the process all over again in 2010. And then you will just be appealing what will be the basis of your 2010 tax bill.
One more thing and then I will shut up. The bill sent out is technically a temporary bill, because the County Commission STILL has not set an official rate. They could keep the existing rate (the one from last year) or they could decide to raise (or lower) the rate. If they do decide to change the rate then they will need to send out an amended bill within the next month. I think that is unlikely – the Commissioners just don’t seem to be able (or willing) to set a tax rate and so will probably just make more cuts and live with the revenue they have until next year.
Response to David Hancock’s article in Talk Gwinnett “My Property Taxes Went Up.”
By Representative Tom Rice, Georgia House District 51
I don’t want to pay more taxes than anyone else does. That is why I co-sponsored HB 480, the Title Fee bill which replaces the sales and ad valorem taxes on your vehicle with a one time fee of 7% or a max of $1500. Immediately or over time Georgia vehicle owner will save tax money with HB 480. This is just one indication of the Republican caucus’ continuing commitment to tax policy that promotes growth and reduces the cost to the tax payer.
David Hancock is partially correct when he says, with regard to the Homeowner’s Tax Relief Grant (HTRG), that “But with funds drying up governments are scrambling to find money, and so this year the State dropped the program.” In fact the HTRG was not funded for 2010 because there was no tax surplus (as the grant originally was conceived to be taken from) from which to fund it. However, the state did not drop the program. Instead we passed legislation to continue the HTRG when there are surplus tax revenues.
Additional indications of our intent to protect property owners are found in the following legislation passed in the 2009 session:
• Capped property tax assessment increases at 0% through 2011* (HB 233
• Required all distressed properties be considered when determining local values (SB 55)
• Instituted an expedited and cost effective process for assessment appeals (SB 240
* Four attempts were made to pass a constitutional amendment (HB 1) that would have given the taxpayers the ability to vote on capping all property tax assessments at a maximum increase of 3% per year or CPI whichever is less. It required a two thirds vote (120) to pass but, with a few courageous exceptions, the other party stymied our efforts. It is too bad for tax payers that the Republican’s 106 votes were not enough.