MillageRate.com

One of the most dangerous pieces of tax legislation in this year’s legislative session continues to make its way toward passage. As we have described here on many occasions, Rep. Edward Lindsey’s (R-Atlanta) proposal to cap property tax assessments is mathematically flawed, completely unnecessary and will only serve to “constitutionalize” additional unfairness in the state’s property tax code.

Lindsey is correct about one probable consequence of his law, although he counts higher taxes as a benefit:

Lindsey said his proposal would force local city councils, school boards and county commissions to “look voters in the eye” and raise millage rates if they want more money.

Whether they “look voters in the eye” or not, it is true that an assessment cap will force cities and counties to increase the millage rate, completely erasing any limit on increases in individual tax bills that Lindsey’s cap may have produced.

Rep. Lindsey is absolutely wrong. Making his error even more egregious is the fact that there is a simpler, more effective and less harmful way to accomplish the same purpose—a mathematically-computed millage rate.

Property tax cap draws flak from cash-hungry cities | ajc.com

Once again, Rep. Lindsey proposes to “fix” the unfairness in the state’s property tax system by introducing yet more inequity:

State Rep. Edward Lindsey (R-Buckhead) said the current crisis sheds light on a flaw in the system — that assessments are a tax on an unrealized gain — an issue that draws some complaints when values are rising but seems just plain unfair when they tumble.

The following correspondence was sent this morning to various reporters, state legislators and those quoted in the article:

D.L.,

If you will give me a little time I can show you, mathematically and without question:

1. Rep. Lindsey’s tax "freeze" proposal, if adopted, will introduce MORE unfairness into the tax system and financially harm the most vulnerable taxpayers;

2. There is a VERY simple solution to the "problem" that Lindsey seeks to solve. The problem isn’t "tax on unrealized gain;" there is a foundational flaw in the property tax code that politicians REFUSE to fix because it would result in more fairness and transparency and LESS power in their hands;

3. If that flaw is fixed, it would not matter AT ALL whether or not property owners were taxed on "unrealized gain." Lindsey’s concern would become a non-issue.

The solution isn’t anything new; the state Department of Revenue has taught this simple concept to tax commissioners, assessors, appraisers and Board of Equalization members for decades. I learned the solution to the problem from the state 15 years ago!

There are numerous other benefits as well to simply "doing the math." I am a former Board of Equalization Chairman with training in property tax matters. I publish the site at www.millagerate.com where I explain the problem, the solution and how the State Legislature could very easily eliminate many of the problems with the tax system, and without a constitutional amendment.

I field dozens of inquiries a year on Georgia property tax matters. This time every year, I contact every legislator to educate them and encourage them to address the root problem with the tax code. While a handful, including Lindsey, have expressed an interest only Senator Curt Thompson has offered significant assistance when, several years ago, he asked Legislative Counsel to draft a bill.

I am angered to see the AJC present Lindsey’s proposal without challenge, when he has no clue what he is doing. I invite you to meet with me to discuss this topic.

You can help move this issue in the right direction by contacting your representatives in the State Senate and House of Representatives and directing them to MillageRate.com.

Property tax fight gears up | ajc.com

State legislators appear to be bent on adopting tax ‘reform’ that can be shown, mathematically, to cause more harm than good. You can help me head off this idiocy by contacting your legislator and directing them to MillageRate.com.

“Property owners in Georgia deserve predictability in their property tax bill,” Rogers said. “It is senseless that a homeowner can be sacked with a 50 percent increase in property taxes just because a government bureaucrat claims the home value has increased on paper.

“This is unfair and it must be addressed.”

Senate leaders back effort to limit tax assessments | ajc.com

The following was sent to all Georgia State Senators today in the wake of the failure of SR-796 and House Speaker Glenn Richardson’s attempt to eliminate the car tag tax.

Senators,

Earlier this week, the House failed to approve SR-796, Sen. Chip Rogers’ constitutional amendment to impose a statewide assessment “freeze” and other restrictions on local taxing authority. The resolution became the vehicle for other tax reform efforts including a plan to eliminate the ad valorem tax on automobiles.

The most prevalent argument against SR-796 was its effect on local control of tax revenue generation. The argument is a valid one; SR-796 would have imposed “one size fits all” restrictions that could not address all situations. In many cases, taxing authorities could have been prevented from raising badly-needed funds. Even worse, I can easily illustrate how SR-796 would have ELIMINATED the tax cut– never again would a Georgia property owner’s tax rate DECREASE.

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A former Dade County Commissioner has challenged the constitutionality of floating homestead exemptions. Twenty-four counties including Cobb, Fulton and Gwinnett, and dozens of cities have approved some type of floating exemption that, in essence, ‘freezes’ the taxable value of your property at a certain level, usually until you move.

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