Democrat Senators Tim Golden (D-Valdosta) and Doug Stoner (D-Smyrna) have co-authored an editorial highlighting the foundational problem with HB-233, Rep. Edward Lindsey’s assessment cap legislation that passed the Senate yesterday and is headed for the Governor’s desk:
We do need to deal with rising property taxes in a responsible way. State government has actually been a big part of the problem – especially when it comes to shifting the burden to the local level. By handcuffing local governments through drastic funding cuts and unfunded mandates, the state has practically guaranteed that property taxes will go up, and go up they have.
We have railed against this harmful legislation for weeks, but our reasoned analysis fell on deaf ears. Although the two Senators failed to offer the only workable solution to the problems with Georgia’s tax code, they recognized that the State Legislature, with what “solution” it offers, usually just compounds the problem.
Erick at Peach Pundit questions just how committed to `tax relief` the two Democrats are. Neither Senator even voted when the time to oppose HB-233 came.
Valdosta Daily Times – Passing the buck to local governments is not ‘tax relief’
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
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…
Tags: assessment cap, assessment freeze, back door tax increase, chip rogers, georgia property taxes, georgia public policy foundation, government accountability, HB-233, house bill 233, HR-1, millage rate
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.
Read more…
Your Comments