Note: Originally published in July, this research summary has been updated to reflect new data; specifically, the official net tax digest amount which was not then available from the county Tax Commissioner.
This Gwinnett city is experiencing explosive growth and, thereby, a significant increase in its tax digest. The opportunity exists this year to pass the benefits of that growth on to the city’s taxpayers, but that will most likely not happen.
At the time that the city adopted its millage rate, the official net tax digest amount had yet to be provided by the county Tax Commissioner. City finance personnel anticipated a 12.5% increase in the tax digest based on certificates of occupancy issuances and other local indicators.
Suwanee adopted a general fund (maintenance & operations) millage of 3.820 although, based on the finance staff’s own numbers, the mathematical millage was 2.216. Although Suwanee has budgeted for $1,534,160 in property tax dollars to fund its 2005-2006 budget, the proposed rate (a 1.604 difference, 72% higher than necessary) would overtax the property owners of Suwanee by at least $1,110,310.
The city received its official net tax digest number in early September; the digest was slightly lower than expected. The mathematical millage based on the official net tax digest is 2.441.
The rate adopted by the city will take at least $867,118 more from the taxpayers than is required to fully fund the adopted budget; slightly less than the city would have realized based on its own projections, but still considerably higher than necessary.
The owner of a $150,000* home in Suwanee will pay $229.20 in city property taxes to fund the M&O portion of the budget, $82.77 more than his/her fair share this year.**
*assessed value
**This calculation does not consider exemptions which may lower an individual’s actual tax bill.
See the math
Your Comments