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Assessment “freezes” hurt the ones they are intended to help

February 27th, 2006 No comments
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(The following was posted in response to an inquiry in the `About Camden` discussion forum.)

Under this type of exemption [an assessment "freeze"], people in lower-valued homes and in established areas of slower growth will over time pay a higher percentage of their actual tax bill than will somebody in a high-dollar house. For this example, I will use the current situation in fast-growing Gwinnett, but this would be true for any jurisdiction with a value offset exemption (“freeze”) where you have older, established neighborhoods as well as newer, actively-developing areas in the same tax district:

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Legislators encouraged to support millage rate bill

December 9th, 2005 No comments
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The following was sent today to those state legislators who publish an email address, as well as widely copied to media outlets and others:

CC: widely to legislators, media, others
RE: Property tax relief in 2006

Dear Legislator,

You will be asked to consider a number of bills in the upcoming session designed to protect Georgia taxpayers from rising property tax bills or to improve the millage rate public hearing process. Some proposals will update the “Taxpayers Bill of Rights” millage rollback (OCGA 48-5.32.1) while others seek to amend the state constitution.

I have reviewed many of those proposals and am available to discuss them with you. I can proudly say, however, that this simple bill to codify the millage rate calculation procedure that has been recommended and taught by the Department of Revenue for years will result in an IMMEDIATE tax cut for most Georgia property owners in the first year following enactment and protect them from “back door” tax increases resulting from rising assessments in following years.

http://www.millagerate.com/law/bill.htm

This bill accomplishes that and more:

1. It SIMPLIFIES the millage calculation process for cities, counties and school boards. The complicated and ineffective millage rollback is eliminated;

2. Not only does it eliminate systematic overtaxation, but it also ensures that no taxing authority UNDERFUNDS its budget by adopting an insufficient tax rate;

3. It ELIMINATES the need for constitutional amendments limiting property tax assessments, which cause inequities in the tax digest. A mathematical millage acts as its own “value offset exemption” or “assessment freeze.” Because this bill is NOT a constitutional amendment, you will be able to give your constituents meaningful property tax relief SOONER;

4. This law will not generate a legal challenge on constitutional grounds as have property assessment “freezes.” This bill merely codifies a procedure that has been taught and recommended by the Department of Revenue for decades;

5. Not only does this bill protect taxpayers from tax increases resulting from rising assessments, but for the first time taxpayers will actually be able to BENEFIT from rising property values in the form of LOWER TAX BILLS. This bill will provide significant relief to the elderly and others on fixed incomes in fast-growing areas, people who are currently being “taxed off” of their homesteads;

6. This bill promotes HONESTY in the property tax process. No longer will a city, county or school board tell its taxpayers that it needs a certain amount of property tax revenue, then adopt a tax rate that TAKES MORE tax dollars from them than necessary. This bill will also promote stability and predictability in the tax process;

7. This bill will force elected officials to “EARN” their tax cut by holding the line on the cost of government. It will also provide actual incentive to identify and implement non-tax revenue sources such as impact fees, local option sales taxes, etc., to minimize the taxing authority’s dependence on property taxes.

I know that you’ve seen more than your share of political showmanship in support of this or that legislation. However, I can PROVE, mathematically, the benefits described above and would appreciate the opportunity to do so. I can also show you how to explain to your constituents how this bill will benefit them.

While a number of legislators have expressed an interest in this legislation, I am still seeking sponsors. I am available to speak or meet with you, at your convenience, to discuss your support of this important legislation.

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Systematic overtaxation should concern every taxpayer

November 10th, 2005 No comments
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by Bob Griggs

I recently penned a guest commentary on the millage rate for publication in Georgia newspapers. The article was rejected by the Publisher of The Columbia County News-Times. According to the response, the News-Times “does not publish letters that originate from outside our local area unless those letters are in regard to a specific local issue…”

I thanked the Publisher for his consideration; it is certainly within his responsibilities to decline to publish. However, I disagree with his conclusion that the article had no local relevance. To confirm this, I took a look at Columbia County’s millage rates. Here is my response to the Publisher:

Thank you for your consideration.

This issue does have local application, however. For example, I can conclude simply by reviewing local millage rates for the past four years that the Columbia County Commission has consistently adopted mathematically incorrect rates. The same is true for Harlem, Grovetown and the School Board. In fact, it appears that no taxing authority in Columbia County sets the millage rate correctly.

The result is that property owners within your coverage area are either being OVERtaxed or UNDERtaxed. Because the rates are mathematically incorrect, it MUST be one or the other.

I consider it a significant local story that Columbia’s elected officials are probably taking more from the county’s taxpayers than is necessary to fund their respective budgets.

It is also interesting that the Columbia County Tax Commissioner’s web site almost accurately describes the correct process for calculating the rate. If you were to ask Ms. Allen to confirm my assertion, I am sure that she will agree that every Columbia taxing authority failed to follow the millage calculation procedure recommended by the state Department of Revenue.

I am available to assist you in your further investigation of Columbia County’s incorrect tax rates.

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The answer to high tax bills: just “do the math”

November 10th, 2005 No comments
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Property tax bills are hitting mailboxes across the state. For many Georgia homeowners, those bills are higher than they have to be.

A deficiency in Georgia’s property tax law allows taxing authorities to adopt any tax rate they choose, regardless of actual budget needs. Across the state, many Georgia cities, counties and school boards take advantage of this loophole to overtax property owners, in some areas by significant amounts.

There is only one correct way to calculate the millage rate, which is the multiplier that is applied to the value of your property to generate the tax dollars needed to fully fund the jurisdiction’s budget. To calculate the rate correctly, elected officials should divide the portion of the budget to be funded by property tax dollars by the Net Tax Digest, which is the total taxable value of all property within the city’s or county’s limits.

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Most Gwinnett cities adopt incorrect tax rates

November 2nd, 2005 No comments
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If you own property within the limits of one of Gwinnett’s cities, the chances are pretty good that you are being overtaxed.

According to Snellville activist and MillageRate.com founder Bob Griggs, not only will your tax bill be too high this year, but the tax rate for almost every taxing authority in the county was incorrectly calculated. As a result, many Gwinnett property owners will pay more in taxes than will be necessary to fund their hometown’s general budget.

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