MillageRate.com

 The following was sent to Georgia’s State Senators following their votes to approve two resolutions that would amend the state constitution to impose a tax assessment “freeze” on all real property.

Greetings, Senator.

I write to explain why either SR-686 or SR-796, both constitutional amendments to freeze property tax assessments, would, if passed not only fail to solve the problem that they are intended to address but would cause additional harm to Georgia taxpayers.

I also want to highlight a simple law change that would accomplish the goals of these two resolutions without the need for a constitutional amendment.

Tax “freezes,” simply by an operation of the math, create inequity in the property tax system. In other words, some taxpayers will pay a higher percentage of their property’s Fair Market Value in tax than will others.

In fact, Senator Rogers’ amendment would actually REMOVE the constitutional requirement that all homeowners be taxed equally! No longer will taxing authorities be prohibited from arbitrarily overtaxing one Georgia citizen to the benefit of another.

Assessment freezes cause their greatest harm to lower-income homeowners including the elderly and those on fixed incomes. Assessment freezes also penalize those who remain in older neighborhoods rather than abandon them for newer ones.

I invite you to read these articles, which I wrote to provide a “real world” example of how assessment freezes harm more vulnerable taxpayers:

http://www.millagerate.com/blog/?p=33

http://www.millagerate.com/blog/?p=34

Because I believe you to be a reasonable individual, there is only one reason why you supported these proposals: ignorance. You obviously do not understand how the property tax process works; otherwise, you would have rejected these proposals in favor of the following straight-forward, simple solution to “back door tax increases.”The millage rate is the key to Georgia’s property tax system. It is the rate that, when properly calculated, ensures that property owners pay no more and no less than is required to fund the cost of their government. Correctly calculated, the millage rate ensures that, as property assessments increase the tax rate must DECREASE, as long as the politicians hold the line on the cost of government.

But did you know that there is no law that requires taxing authorities to simply “DO THE MATH” — to follow the procedure for calculating the millage rate that has been taught for decades to tax commissioners, appraisers and assessors, and Board of Equalization members across the state?

Further, did you know that Georgia’s city council members, county commissioners and school board members are not taught the correct procedure for calculating the rate?

[How to calculate the millage rate: http://www.millagerate.com/howto.htm ]Several years ago, I conducted a study of taxing authorities from across the state. I found that fewer than one out of 10 adopted a mathematically-correct millage rate. As a consequence, the taxpayers in the overwhelming majority of Georgia’s cities and counties are either being OVERTAXED or UNDERTAXED– it MUST be one or the other.

Neither Senate resolution will solve this problem. Even after passage of either of these constitutional amendments, Georgia taxpayers will STILL pay tax at a rate that has no mathematical connection to the cost of their government.

I ask that you call me at your convenience so that I can explain the benefits of a mathematically-correct millage rate. You have the opportunity to resolve a serious flaw in Georgia’s property tax law, and to do so with a simple legislative action rather than a constitutional amendment.

I also invite you to visit MillageRate.com, the top-rated web site in the world on this topic, which I authored to explain this issue.

When SR-686 and/or SR-796 return to you for consideration, I ask that you reject them for the simpler, more effective and completely harmless solution: a mathematically-correct millage rate.

Reference: 2/12 AJC article