Georgia property tax cap proposal resurfaces
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By GREG BLUESTEIN
Associated Press Writer
ATLANTA (AP) — House lawmakers could soon consider something that is fast becoming a rite of passage under the Gold Dome: A measure that would limit property assessment hikes to no more than 3 percent each year or the rate of inflation, whichever is lower.
As they have over the last four years, the measure’s supporters said it would help lower taxes on beleaguered homeowners while preventing local governments from raising revenues through a “back door.”
And critics, in a now familiar refrain, contended that slowing the growth of property taxes could deprive local governments of the revenue they need for crucial services like police protection and education.
“This is a version of Groundhog Day,” said state Rep. Ed Lindsey.
Lindsey, a Republican who represents Atlanta’s upscale Buckhead neighborhood, has lobbied for the assessment restrictions since he took office in 2005. He said the current assessment system is “fundamentally unfair” and needs a swift revision.
“It affects the farmer in Wilcox County, it affects the small businessman in Toccoa, it affects the elderly person in Grant Park, and it affects my district in Buckhead,” he told members of the House Ways & Means Committee Monday at a hearing on the measure.
“It crosses political lines, geographic lines and economic lines.”
His proposal has support from a broad array of Republican leaders, including House Speaker Glenn Richardson and House Majority Leader Jerry Keen, both who have backed the measure in previous years.
But the plan, like other competing proposals to slash taxes, fell victim to political infighting in the legislative session’s final hours last year. And this year the measure’s opponents are bracing for another lengthy fight.
Lobbyists from local governments warn it could force county and city officials to raise millage rates for all residents, which they say could have a disproportionate impact on the poor and the elderly.
Education groups fear it could tighten school revenue at a time when state funding isn’t keeping up with a rapid increase in enrollment.
But some of the most forceful critics at Monday’s hearing urged legislators to think twice about a provision that would also restrict the assessments from rising on commercial properties.
Savannah City Manager Michael Brown said he worried it would shift the tax burden from the city’s businesses to its residents.
“Once we enact a commercial tax freeze, they will begin to pay a higher tax,” he said of Savannah’s homeowners.
Macon Mayor Robert Reichert echoed his concerns. He urged the panel to take a “go-slow approach” by first implementing the restrictions on residential properties before expanding to businesses.
“The most significant thing I want you to think about is the dramatic shift you’re making with this legislation away from fair market value,” said Reichert, a former House lawmaker. “You’ve come up with a system with artificial limitations and artificial caps that constrain market forces.”
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On the Net:
House Resolution 1: www.legis.ga.gov
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