Listening to complaints over property taxes, some Georgia lawmakers look to restrict rising values – WSB-TV Channel 2

ATLANTA (AP) — With a runup in dwelling values sparking larger property taxes for a lot of Georgia householders, there’s a groundswell amongst state lawmakers on this election 12 months to supply reduction.

Georgia’s Senate Finance Committee plans a listening to on Monday on a invoice limiting will increase in a house’s worth, as assessed for property tax functions, to three% per 12 months. The restrict would final so long as the proprietor maintained a homestead exemption. Voters must approve the plan in a November referendum.

In the meantime, Republican Home Speaker Jon Burns of Newington proposes doubling the state’s homestead tax exemption, a measure prone to lower tax payments by practically $100 million statewide.

However Georgia is much from the one state the place lawmakers are reacting to voter discontent over larger levies.

“Property taxes are prone to be the most important tax subject in lots of states this 12 months,” stated Jared Walczak of the Tax Basis, a gaggle that researches taxes and is commonly vital of will increase.

In Texas, voters in November authorised a plan chopping property taxes by $18 billion. Kansas’ Democratic governor and its Republican-majority legislature are each endorsing bigger exemptions for householders to chop taxes by $100 million yearly. Colorado lawmakers assembly in a November particular session authorised larger residential deductions and a decrease evaluation price. Pennsylvania is utilizing lottery proceeds to chop property taxes and subsidize lease for seniors and folks with disabilities.

In Georgia, supporters say a cap on houses’ taxable worth would maintain college districts, cities and counties from rising tax revenues by counting on rising values. Republicans have lengthy pushed native governments to roll again tax charges to maintain payments degree, even requiring commercials labeling a failure to take action as a tax enhance.

Finance Committee Chairman Chuck Hufstetler, the Rome Republican sponsoring Senate Invoice 349, says many college districts and governments are as an alternative pocketing larger revenues primarily based on worth.

“I’ve seen some will increase the place, simply in a few years, their collections have gone up 40%,” Hufstetler instructed The Related Press on Friday. “And so they haven’t dropped the millage price and they’re utilizing it for a backdoor tax enhance. And I feel there must be some moderation on that.”

Statistics present general property tax collections rose 41% from 2018 to 2022 in Georgia. Throughout that very same interval, whole assessed worth of property statewide rose by practically 39%. These Georgia Division of Income figures signify not solely current property but additionally new buildings. So that they don’t clearly state how a lot valuations rose on current property.

Many governments and faculty districts have spent the windfall from rising values to extend worker pay and canopy inflation-swollen bills. A 3% cap might imply that governments must increase tax charges as an alternative. In states together with California and Colorado, property tax limits have been blamed for hamstringing native governments.


Already, at the very least 39 Georgia counties, 35 cities and 27 college techniques have adopted native legal guidelines limiting how a lot assessed values can rise, based on the Affiliation of County Commissions of Georgia. A few of these limits solely profit householders 65 or older.

Republican Lt. Gov. Burt Jones is backing Hufstetler’s invoice, saying it should stop “massive shock will increase in dwelling values.” It’s additionally supported by at the very least one Democrat, Atlanta Sen. Jason Esteves.

“A key piece of this invoice is attempting to make sure that persons are capable of keep of their dwelling,” Esteves stated, saying larger taxes are forcing homeowners to promote and transfer.

However state Home leaders are cool towards imposing valuation caps statewide, saying that selection ought to be left to native communities. They as an alternative again Burns’ elevated tax exemption.

“Our hope is to protect native management,” Home Methods and Means Committee Chairman Shaw Blackmon, a Republican from Kathleen, stated Friday.

As a result of the caps might maintain down values extra the longer somebody owns a house, they might end in long-term residents paying decrease taxes than newcomers. That’s already the case in some Georgia communities with native caps.

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Suzanne Widenhouse, chief appraiser of the Muscogee County Board of Assessors, instructed a Home committee in October that one Columbus house owner paid $7.79 in property taxes final 12 months, whereas a extra not too long ago arrived neighbor in the same home paid $3,236.19. That proprietor would have paid extra apart from a $950 million property tax rebate championed by Gov. Brian Kemp.

Greater than $2 billion in property worth in Columbus is shielded from taxation by homestead exemptions which don’t permit for any rise in worth. That shifts the tax burden industrial and industrial property homeowners, in addition to renters, Widenhouse stated.

“Any time that you just begin capping values, you create inequality,” Widenhouse stated.


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