MillageRate.com

Lindsey said freezing property assessments would eliminate such “back-door tax increases.”

Rep. Edward Lindsey (R-Atlanta) is wrong about HR-1, which would impose an assessment ‘freeze’ constitutionally, or HB-233 which seeks to do the same thing without a constitutional amendment for a two-year period. Not only is he wrong, but his ignorance is a danger to local governments, taxpayers and the Georgia property tax system.

I sent the following note to James Salzer, the AJC reporter on the State Legislature:

From your story: "Lindsey said freezing property assessments would eliminate such ‘back-door tax increases.’"

Here is what else Lindsey’s proposals (HB-233 temporarily or HR-1 permanently) would do:

1. KILL THE TAX CUT. Never again will a city, county or school board reduce the millage rate. First, they are not required to by law. Second, no taxing authority would ever give up a tax rate level that
it had achieved, especially considering the depressed tax digests that Lindsey’s proposals will produce;

2. GUARANTEE "FRONT DOOR" TAX INCREASES. If HB-233 passes AND a) the cost of local government increases more than one or two percent; and b) the taxing authority’s millage rate isn’t already mathematically incorrect (to the high side), it will be forced to increase the millage rate. Many cities and counties will be forced to raise the tax rate when, WITHOUT HB-233, they could maintain a steady rate;

3. ELIMINATE THE BENEFIT OF A GROWING ECONOMY. Assessed values are not pulled out of someone’s rear end. They are the product of a prosperous, growing local economy. Growth not only REQUIRES additional government services but it helps to pay for itself through higher property values. IF the millage rate were calculated correctly in a prosperous local economy, it would actually decrease as values increase in most cases. With HB-233, no longer will cities and counties be allowed to use the growth in their economy to fund the increasing cost of government that such growth produces.

Lindsey’s proposals are failures because they will not produce the effect that he claims. They are a danger because they are not benign; either one will result in higher 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 pay.

Bill would freeze property assessments for two years | ajc.com