Comments on: Assessment “freezes” hurt… an update http://www.millagerate.com/blog/assessment-freezes-hurt-an-update/ Promoting Honesty in Taxation in Georgia Mon, 18 Jul 2011 19:20:00 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: MillageRate.com » Lindsey Is a Danger to the Georgia Property Tax System http://www.millagerate.com/blog/assessment-freezes-hurt-an-update/comment-page-1/#comment-1339 MillageRate.com » Lindsey Is a Danger to the Georgia Property Tax System Fri, 13 Feb 2009 02:52:24 +0000 http://www.millagerate.com/blog/?p=34#comment-1339 [...] tax rates which will wipe out any benefit of ‘frozen’ assessments. Even worse, a freeze will shift the cost of government onto those less able to [...] [...] tax rates which will wipe out any benefit of ‘frozen’ assessments. Even worse, a freeze will shift the cost of government onto those less able to [...]

]]> By: MillageRate.com Admin http://www.millagerate.com/blog/assessment-freezes-hurt-an-update/comment-page-1/#comment-55 MillageRate.com Admin Wed, 08 Mar 2006 15:24:03 +0000 http://www.millagerate.com/blog/?p=34#comment-55 Greetings, Manny. The problem with looking at the difference solely in terms of the size of the tax bill or solely in terms of the value of the property is that it is an incomplete comparison. Of course, one house is more valuable than the other-- that was part of the premise of our comparison. And because the tax bill is simply the product of applying the millage rate to the taxable value, the tax bill of the more valuable home will be higher. You have to compare in terms of the constitutionally-established tax liability. All similarly-situated property owners are required to pay taxes on 40% of their property's Fair Market Value. For now, forget about the obvious fact that anybody who receives an exemption of any type is not paying on his/her full Fair Market Value. Because the exemption is larger for a certain class of property than for another, the owner of the first part pays a lower percentage of his/her tax obligation than does the other. The high-dollar home's tax bill is a lower percentage of its value than is the tax bill of the lower-valued home. It's not necessary a matter of dollars and cents; it is a matter of equity. Greetings, Manny. The problem with looking at the difference solely in terms of the size of the tax bill or solely in terms of the value of the property is that it is an incomplete comparison.

Of course, one house is more valuable than the other– that was part of the premise of our comparison. And because the tax bill is simply the product of applying the millage rate to the taxable value, the tax bill of the more valuable home will be higher.

You have to compare in terms of the constitutionally-established tax liability. All similarly-situated property owners are required to pay taxes on 40% of their property’s Fair Market Value.

For now, forget about the obvious fact that anybody who receives an exemption of any type is not paying on his/her full Fair Market Value. Because the exemption is larger for a certain class of property than for another, the owner of the first part pays a lower percentage of his/her tax obligation than does the other.

The high-dollar home’s tax bill is a lower percentage of its value than is the tax bill of the lower-valued home.

It’s not necessary a matter of dollars and cents; it is a matter of equity.

]]> By: Manny Carvalho http://www.millagerate.com/blog/assessment-freezes-hurt-an-update/comment-page-1/#comment-54 Manny Carvalho Sat, 04 Mar 2006 06:54:49 +0000 http://www.millagerate.com/blog/?p=34#comment-54 How about you look at it this way. Using your numbers. The newer house at the end of six years of 12% evaluation with a fair market value of 702,464 (frozen FMV of 597,025) pays $6,687 in taxes assuming a 25 mil rate. The older house after six years of 2% evaluation pays $1,159 in taxes assuming the same tax rate. So, the newer house pays 5.8 times more taxes (6,687/1,159) and has 6.1 times more value (702,464/115,960). How's that unreasonable? How about you look at it this way. Using your numbers.

The newer house at the end of six years of 12% evaluation with a fair market value of 702,464 (frozen FMV of 597,025) pays $6,687 in taxes assuming a 25 mil rate.

The older house after six years of 2% evaluation pays $1,159 in taxes assuming the same tax rate.

So, the newer house pays 5.8 times more taxes (6,687/1,159) and has 6.1 times more value (702,464/115,960).

How’s that unreasonable?

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