In an attempt to gain control of Georgia’s spiraling economy, both House and Senate are sponsoring legislation to battle increases in tax assessments.
Ten days ago members of the House approved a bill to place a moratorium on tax assessments until January 2011. That bill is now on the Senate floor where members just passed two proposals to cap property assessments.
This simultaneous legislation addresses the problem of local governments increasing their revenue by raising the property assessments of homes. Because increasing the tax rate is a strenuous political process, most city councils and school boards use this method as a “back door” tax to citizens.
In an attempt to secure the economic stability of the state, supporters claim these back door taxes will only further burden residents while questionably providing local commissions with excess funds.
The bill that is now being considered in the Senate would freeze all increases in the assessed value of real property for two years and nothing would be done to prohibit the assessed value from decreasing.
Opponents claim local governments will be stripped of funding programs that Georgians need more than ever.
The bill reads “This chapter is repealed in its entirety on the second Monday in January 2011.” Meaning the freeze is over and local governments can return to increased revenue through back door taxes.
However, according to two senate proposals, voters will vote in November whether or not to place a cap on increases in property assessments. If Georgians pass the resolution, local governments will be forced to alter tax rates, or settle for limited increase in revenue.
[Turner is an undergraduate college student from Canton, GA. He is completing a BA in journalism with a minor in political science. He can be reached at renturner@gmail.com.]
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