How Much Would a Property Tax Hike Cost You?

Bartow County Commissioner Steve Taylor has announced the county's intention to raise property taxes by 25.2 percent for unincorporated areas and 21.2 percent for incorporated areas over the rollback millage rate. 

That would mean an extra $97.50 per $125,000 in fair market value for a home in unincorporated Bartow County and $96 per $125,000 in fair market value for a home in incorporated areas, Chief Financial Officer Jo Taylor said, according to The Daily Tribune News.

"The County is required to increase the millage rate in order to balance the budget and stop spending its reserve funds," county officials say in a press release. "A variety of factors have contributed to the need for the tax increase. The county has taken many steps to reduce expenses, but increasing costs and the prolonged recession have finally necessitated a tax increase." 

Officials provided a summary of the issue below and conducted Wednesday two of three public hearings required before a final millage rate is set. The next is set for Wednesday, July 24, at 9 a.m.

Here's the county's summary:

Revenue Problems

• Property tax digest comprises about 38 percent of revenue. 
• Sales tax (LOST) about 25 percent of revenue. 
• Remainder of budget is fees for services, fines, grants, payments. 

Property Tax 

• Property tax digest down about 9 percent since peak in 2008. 
• Real property portion of tax digest down 23 percent. 
• Difference made up of personal property, utilities, motor vehicles (disappearing) and few other minor categories. 
• Millage essentially unchanged from 2008 (actually reduced slightly). Therefore, average real property tax bill down 23 percent. 

Sales Tax 

• Sales tax down 10 percent from 2010 to 2012 and down a further 7 percent so far this year. 
• Sales tax impacted by TAVT, GATE and Georgia Power reduction in coal usage plus the explosion at the plant. 
• TAVT: Title ad valorem tax. No sales tax on vehicles anymore. Future ad valorem tax reduction. 
• GATE: Georgia Agriculture Tax Exemption. Dramatic reduction in sales tax.
• Georgia Power: Has reduced purchase of coal substantially (burning natural gas). Utilities were 45 percent of sales tax in 2010, down below 25 percent last year. Falling even further. 

Other Revenue 

Down in varying amounts, due to less construction, less people able to pay, etc. 

Expenditure Reduction Efforts

• Reduced payroll by over 50 employees. 
• No raises for five years. 
• On 12 days furlough for five years. 
• County has deferred vehicle and equipment purchases—unsustainable.
• Budget has dropped $6,000,000 from 2008. 
• County has spent over $5,000,000 of reserves in last two years. 
• Fund balance peaked at $14,000,000 in 2006, down to $7,000,000.
• Prudent fund balance target is 2 to 3 months’ expenses. (About $13,000,000 to $19,000,000). 
• Many departments cut significantly, between 10 to 25 percent. These would include Elections, Tax Assessors, Building Inspections, Engineering, Zoning, Animal Control, Recreation, Indigent Services. Also Superior and Juvenile courts cut. 
• Budgets that have increased are generally mandated function: Sheriff, Probate Court, District Attorney, Public Defender, Fire. Often result of unfunded mandates. 
• County providing the same or better level of service for less cost. 

Prior Tax Increases

• No tax increase since 2005. 
• Millage rates have been falling. 

Even after the tax increase, Bartow County’s millage rate compares favorably to neighboring jurisdictions, many of whom have multiple, specialized millages in addition to the general maintenance and operation millage rate. 

Other nearby jurisdictions (unincorporated areas): 

• Bartow 9.68 (proposed 2013 millage) 
• Gordon 9.80 
• Cherokee 9.999 (includes Fire District and Recreation Bond) 
• Polk 10.85 
• Floyd 11.10 (includes Fire District and Solid Waste District) 
• Cobb 11.11 (includes Fire District and Bond) 
• Paulding 13.444 (includes Fire District and Bond) 

Source: Ga. Dept. of Revenue, Local Gov. Services Division, 2012 Georgia County Ad Valorem Tax Digest Millage Rates 

Tell us what you think in the comments, share your photos and videos, and don’t miss any of the local news you care about—subscribe to Cartersville Patch's newsletter, like us on Facebook and follow us on Twitter.