Happy Birthday America! And let the tax revolts begin. As reported in the Atlanta Journal Constitution recently several metro Atlanta area counties are considering increasing their millage (tax) rates without much opportunity for input from the taxpayers. According to the Georgia Taxpayer Bill of Rights the counties are prevented from increasing tax revenue from an increase in the tax base due to appreciation, unless they hold three public hearings. When the tax base increases due to appreciation the county is supposed to calculate a new, lower millage rate that will result in no additional tax revenue (revenue neutral). If they decide to use a millage rate that is higher than the revenue neutral rate the county has to have three public hearings on the increase.
When the Taxpayer Bill of Rights was passed in 1999 apparently no one considered the possibility that values could fall as much as they have over the past several years. The counties can now use the revenue neutral requirement to raise the millage rate due to declining property tax assessments. Because this is technically revenue neutral, the counties don’t need to advertise the millage rate increase and there is no need for a public hearing other than the county commissioner meeting when the new millage rate is approved.
Property owners in several metro counties including Hall and DeKalb have been voicing their opposition to proposed millage rate increases. Fulton County’s Finance Director is recommending a revenue neutral rate. Cobb County’s finances are in such poor shape that they may need to advertise a tax increase above what would be an increase to the revenue neutral rate. This was the year to appeal your property tax assessment not just to save money, but to prevent a property tax increase. The deadline to appeal in DeKalb County is Monday, July 11 and many Fulton County property owners received a second assessment notice with a deadline of July 26, due to miscalculated tax estimates on the original notices.
Foreclosure sales continue to drop but the inventory of foreclosed properties remains high. Foreclosure inventory combined with mortgages that are 90 days delinquent outnumber foreclosure sales 50 to 1. The supply of vacant homes held off the market continues to increase and now totals 3,861,000 compared to 3,602,000 in the first quarter (national figures). The average time that a home owner spends in foreclosure continues to climb. More than 33 percent of home owners in foreclosure have not made a mortgage payment in more than two years.
