MillageRate.com

Over 99% of Georgia’s City Councils, County Commissions and School Boards fail to simply do the math.

The following was sent to all State House members this morning as they prepare to reconsider HR-1, the constitutional amendment to impose a 3% annual cap on increases in property assessments:

NOW….

Local officials can adopt the same millage rate as in the previous year, even as property assessments increase. This generates a tax windfall known as the “back door tax increase.” Property owners pay more even when local politicians don’t “raise taxes.” Read more…

“Georgia Legislative Watch” has graciously published our extensive commentary on the problems with HR-1, HB-233 and assessment caps in general. If you are interested the Georgia legislative process, check out this site.

The cure for “back door tax increases” is simple– require cities, counties and school boards to DO THE MATH. Doing so would remove a variable– the millage rate– from the control of local officials. No longer could they hide increases in the cost of government by maintaining an already inflated millage rate from year to year. No longer could they benefit from the windfall generated by rising assessments even when they don’t “raise taxes.”

Georgia Legislative Watch » COMMENTARY: Property tax issue dissected

MillageRate.com’s “Max Millage Calculator” has been updated for 2009 and is now available by request.

With the “Max Millage Calculator,” you can easily figure out if your elected officials are setting your millage (tax) rate correctly. If they have adopted an incorrect tax rate (and over nine out of 10 cities, counties and school boards do it wrong), you may be paying too much in property taxes!

The  spreadsheet is a great tool for concerned taxpayers and journalists who are trying to understand the budgeting and property taxation process. Send an email to info@millagerate.com to request your Millage Calculator.

(Updated for the 2009-2010 legisative session)

Proponents of assessment caps like HB-517 and HR-1 argue that it is not “fair” for property owners to be taxed on “unrealized gain,” which they define as the increase in the property’s value which is arbitrary (they argue) imposed by some mindless bureaucrat from the county assessor’s office. A person should not be taxed on something that he does not “possess.”

It’s a plausible argument, but fails on closer scrutiny. The “unrealized gain” argument is flawed and illogical.
Read more…

The following was written in response to Senator Chip Rogers’ 2/13/09 article for the Georgia Public Policy Foundation, “Count on Tax Assessment Caps to Offer Property Owners Accountability:”

Senator Rogers is wrong when he writes that assessment caps are the best way to impose accountability on local officials.

First, there can be no real accountability resulting from an assessment cap because of the primary flaw in the tax law– a City Council, County Commission or School Board can currently adopt any millage rate that it chooses. There is no law that requires them to adopt a tax rate that has any connection to the cost of government. As a consequence, many adopt a tax rate that takes more from property owners than is required to fund government services. And the overtaxation happens even when the millage rate remains the same from year to year. Read more…