Two bills to freeze or limit home assessment increases in hopes of holding down property taxes have been pre-filed for the upcoming General Assembly session.
Rep. Ed Lindsey (R-Atlanta) pre-filed a proposal backed by House Speaker Glenn Richardson (R-Hiram) and House Majority Leader Jerry Keen (R-St. Simons Island) to cap possible property assessment increases at 3 percent or the rate of inflation. A similar bill passed the state Senate last year.
Rep. Kevin Levitas (D-Atlanta), pre-filed a bill to effectively freeze assessments at the price the homeowner paid for their home.
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When the GOP is over thrown at the state level, it won’t be because of a Mark Foley type scandal or because the Kia plant closes. It’s going to be because our GOP leaders have transformed themselves into the enemy of the local government.
The party of “local control” has decided the definition of local is “Atlanta”. All tax reform proposals are designed to take money and/or authority away from local governments, and centralize that power under the gold dome.
The number one rule of politics is “all politics is local”. The local school board members, county commissioners, and city council members are going to tire of the “we’re from the state and we’re here to help” approach soon.
I have met with Edward Lindsey on this topic. He doesn’t understand Georgia’s property tax process and has no interest in actually correcting its deficiencies. His only interest is in pandering to an equally ignorant constituency. http://www.millagerate.com
Are there any Georgia Republicans left with attention spans that know how to use a calculator or do they still count on their fingers and toes?
Regardless of the COLA cap, your homeowner taxes are fixing to go up. Thanks to Sonny & Glenn:
http://www.ajc.com/search/content/2008/11/01/legtaxes.html
GOP legislators on defensive over property tax stands
By James Salzer
The Atlanta Journal-Constitution
Saturday, November 01, 2008
“Already facing a likely heavy Democratic turnout and a poor economy, Republican state lawmakers in re-election battles are also having to defend themselves against charges that their leaders want to raise property taxes.
Because of the state’s fiscal crisis, Republican Gov. Sonny Perdue withheld property tax grants that save homeowners $200 to $300 a year.
Then Republican House Speaker Glenn Richardson of Hiram, who has advocated eliminating property taxes in the past, said last week that the grants probably will disappear next year. County officials say that would all but guarantee property tax increases.”
Good morning. It is good to be back on Peach Pundit. Let me try and explain what HR 1 does and does not do.
Icarus questions whether this is an attack on local control. I don’t believe it does; however, let me first back up and explain the logic behind a reassessment cap. I believe property owners should be taxed based on their investment in their property and not on an unrealized gain set by a local bureaucrat. Not even the IRS dares to tax citizens on an unrealized gain. Local governments should not do so either.
Under HR 1, local elected officials will still be free to adjust their milage rate if they believe they are in need of greater revenue. The difference is that from now on they will have to do it openly through the front door and not hide behind reassessments to cover their increase in spending.
The end result is that you have a fairer property tax policy since it is tied to taxpayer’s own investment and you also have a more transparent local process. In addition, it should also lead to greater efficiency. Since elected officials should be loath to raising taxes on their constituents, they are more likely to make better use of the money they are presently getting before asking for more through a tax increase.
As to BobG’s point, he and I are trying to address two different problems built into how the property tax system works. I am focusing on the fairness of how the system treats the taxpayer. BobG is focused on the process of how the local governments calculate the millage rate. As I believe told BobG when we met, the two concerns are not necessarily mutually exclusive. If he can show me how his suggestions will lead to a better process, I’m open to listening.
Fundamentally, what BobG objects to is that he believes local governments essentially cheat when setting their budgets. If I understand his point — and Vic forgive me if I do not because of my limited attention span — it is that the millage rate should be set only after the local government has added up its projected spending and other sources of revenue and then must use property taxes to fill the gap. Instead, BobG argues that local governments are figuring how much revenue they can receive based on their millage rate and then budgeting how to spend it. BobG has a legitimate point; however, budgets cannot ever be created in a vacuum separate and apart from revenue.
As to Vic’s point, I am afraid the AJC did not quite get it right. The House GOP members are adamant that there will be no elimination of the Homeowners Tax Relief Grant in the present 2009 budget. However, we do need to look at how the process will work in future.
There has been some question as to whether the program has resulted in true tax relief to homeowners or whether local governments have simply taken the state money and increased spending. Personally, I favor having the money going directly back to the taxpayer rather than channeling it through the local governments as we presently do.
Let me close by saying that I believe that any changes in tax policy or the tax process, should focus on at least one of the following issues: Will it be more fair to the taxpayer; 2. Will it lead to more transparency in government? and 3. Will it promote more efficient government?
Show me any proposal that addresses these issues and let’s talk.
Rep. Edward Lindsey (R-Atlanta)
edward.lindsey@house.ga.gov
404-656-0298
BobG has something wrong? No freaking way!
Bill, Bill, Bill… your odd fixation on me is really starting to creep me out! I do not believe that the esteemed legislator said that I was wrong; only that we were focused on two different goals. Your inordinate desire to catch me in error has clouded your thinking!
To the Representative’s points… while it is admirable for Rep. Lindsey to attempt to eliminate a perceived “unfairness” (taxation on unrealized gain), I can show that 1) it doesn’t matter on what value a property owner pays as long as it is equitable in relation to other taxpayers; and 2) Lindsey’s “freeze” proposal will actually introduce MORE inequity.
And that’s not opinion… I can prove it mathematically.
Further, I can explain how Lindsey’s proposal is doomed to fail, just like every other attempt to “fix” Georgia’s property tax system starting with Roy Barnes’ “Taxpayers Bill of Rights” millage rollback.
Finally, I can explain (as I have to the entire State Legislature on many occasions over the years) how a simple change to the state’s tax law will solve the problems that Rep. Lindsey seeks to address WITHOUT further complicating the tax code and without causing even more problems.
This simple correction of a flaw in the tax code will not only be more fair to the taxpayer, but it will promote transparency not only in the tax process but in the budget-setting process as well.
It will actually guarantee that as values INCREASE, tax rates will DECREASE as long as the politicians hold the line on costs. Not only will the “back door tax increase” will be eliminated mathematically, but a growing tax base will actually produce the tax CUT that property owners should have been receiving each year.
It will eliminate several layers of unnecessary and often conflicting regulation, greatly simplifying the tax process not only for the taxpayer but for local governments. Cities, counties and school boards (and the taxpayers they represent) will be allowed to control their own destinies without undue interference by the state.
It will also promote more efficient government because it will FORCE local government to justify every expense. It will FORCE politicians to cut costs and/or aggressively pursue non-tax revenue sources like impact fees and other user fees.
I invite you to visit http://www.millagerate.com for more information. Check the blog at http://www.millagerate.com/blog for articles about the problems with assessment “freezes” and similar legislation.
Finally, here is a challenge: ask any county appraiser, assessor, Tax Commissioner or Board of Equalization member– the folks who understand the property tax process– what they think of assessment “freezes.”
Then ask your State Rep or Senator why cities, counties and school boards are not required to follow the procedure for calculating and adopting the millage rate that has been taught by the Department of Revenue for decades. Ask them why taxing authorities are allowed to adopt any tax rate they choose, regardless of how much money they actually NEED to fund their budget.
BobG,
This is your statement to which I was responding that you were wrong: “His only interest is in pandering to an equally ignorant constituency”
You were wrong in your statement that Edward was “pandering.”
Ed,
Is the Valdosta Daily Times wrong also?
http://www.valdostadailytimes.com/local/local_story_318230734.html?keyword=topstory
Published November 13, 2008 11:07 pm –
Perdue suspends tax relief grant
County, school system hit with $2.3 million loss
By Matt Flumerfelt
excerpts:
“VALDOSTA — A tax relief grant that has been reimbursed to Georgia counties since Roy Barnes occupied the governor’s mansion was suspended by Gov. Sonny Perdue, and it’s putting county governments and school systems in a financial bind.
Ever since the General Assembly established the Homeowner Tax Relief Grant in 1998, Georgia county governments have incorporated the reimbursement into their yearly operating budgets. The grant began as a campaign promise by then-candidate Barnes to counter a promise to eliminate the state car tag tax by opponent Guy Millner.
The governor’s announcement suspending this year’s reimbursement means that county governments and school systems throughout Georgia are scrambling to find ways to make up the shortfall. The current directive from the governor’s office is to delay reimbursement only, according to the Association of County Commissioners of Georgia Web site. Lowndes County Manager Joe Pritchard said the governor is obligated by law to honor the grant, but counties and school boards will have to find ways in the meantime to cover the cost of the tax credit out of their own reserves or else bill taxpayers retroactively. The expected outcry from taxpayers if they are billed in 2009 for a credit they received and paid with their 2008 property tax bill is causing concern for county commissioners across the state as they try to plan what to do in response to the governor’s announcement.
Sewell Brumby, legislative counsel for State
Senator Tim Golden, D-Valdosta, stated, “While there may be some room for debate and these are uncharted waters, it appears to me that the grants for this year could be withheld if the General Assembly so amends the general appropriations act at the upcoming session.””
Tim Golden is still in the legislature?
Vic:
Actually the Valdosta Times got it right. Gov. Perdue temporarily suspended the payments but it will take an act of the General Assembly to withdraw the HTRG from the 2009 budget.
As I stated earlier, the GOP House Caucus is adament that the HTRG will remain in the 2009 budget. Whie we face difficult economic times, we should not balance the budget by raising taxes on Georgia’s homeowners.
Rep. Edward Lindsey (R-Atlanta)
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