“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
I have written an article describing, with actual numbers, the (I believe, unconstitutional) inequity inherent in HB-233, which was approved by the Georgia House of Representatives on Thursday. Click the link below.
The State Constitution requires that government treat its citizens equitably, except where the legislative creation of a special classification can be reasonably justified. In operation, HB-233 creates a special class of taxpayer– "Owner of a Property Substantially Increasing in Value"– and rewards him with a significant tax benefit.
MillageRate.com: Why HB-233 Is Unconstitutional… And Dangerous
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…
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