MOST CITIZENS probably got blindsided by the state’s freeze of property tax “give backs” in its quest to deal with what is truly a pretty drastic budgetary shortfall in revenue — as much as $2 billion is apparently possible.
Heck, most citizens probably didn’t realize this line-item reduction on their property-tax bills was saving them more than $200 a year. It’s little wonder the current ruling Republicans never made a big deal about it while talking up “tax reform.” Pretty hard to brag on an actual tax reform that was put in by a Democratic administration.
The homestead tax credit (it amounts to taking $8,000 off your taxable assessed value) was just a line subtracted from property bills and most were probably unaware that this reflected a use of state revenues from income taxes and sales taxes to ease the burden on property. By the way, rental and business properties never got the credit in the first place — they’ve been paying full-bore bills all along so wouldn’t have faced a bigger property-tax bill ... yet. Wait until next year’s millage rates if this continues.
THE LAUDABLE part of this is the response of city/county leaders, who let the ready-to-go bills be sent out with the tax credit still included in hopes that this will be revised/rescinded/made unnecessary in coming days. That’s going to force them into some really rough seas as the money the state is withholding is what they largely get at just this time of year and is built into their bookkeeping and cash flows.
The saddest part of all this is that it’s not only unfair to homeowners, left up in the air about the future, but also to the same Rome/Floyd commissioners and school board members who recently struggled mightily to keep their budgets and millage rates mostly steady. One dare say that local elected officials and their hired hands and brains spent a whole lot more time sweating out budgets and balancing books than anyone at the state level apparently did.
The House speaker never mentioned the existing relief when campaigning earlier this year for “tax reform” to wipe out all property taxes, did he? Boy, doesn’t the notion of “cutting taxes” look ridiculous now when there isn’t enough coming in to cover what the politicians have already spent!
In addition, there probably couldn’t be worse timing for this in Floyd County where voters will be going to the polls in about a month to decide a new penny sales tax of school construction, including a new Model High School. That’s still worth doing, but plainly taxpayer/voters are now going to be put in a nervous mood.
A FRIEND recently commented that this newspaper apparently has never met a tax it didn’t like. That may be largely true, although only in recent years and only for local special tax requests. Greater Rome’s current leaders, largely of business backgrounds, have shown themselves very capable, cautious and frugal with tax monies. They’ve earned trust in proposing needed community improvements and have largely delivered them on time and under budget.
And they just proved it again by putting the best interests of all citizens above their own in dealing with this state-initiated mess by throwing their own bodies and budgets in front of the steamroller.
On Sept. 16, the school SPLOST still deserves enthusiastic support.
That can’t be said for the state’s taxation antics. There the problem is entirely different. The politicians and special-interest groups running them have proven that they will take care of their needs first time and time again and aren’t ready to mend the error of their ways. So long as they can fool or buy off enough voters to stay in office this will continue.
That means old/existing taxes will continue to be spent on the wrong things and new, dedicated taxes that can’t be rerouted — such as ones on fuel dedicated to highways — are needed to take care of the neglected basics. The politicians are obviously going to keep and use poorly the money they already get. If Georgians want what they actually need provided, new taxes that can only be spent on a targeted purpose will be required. Well, either that or a whole different type of politician.
MANY LEGISLATORS immediately vowed they’d stop the freeze on the property-tax roll-back from happening. Well, the deed’s done for the time being, they’re not in session and what’s their answer anyway — closing half the state’s prisons and releasing all the inmates? That would roughly cover the more than $400 million involved in halting the tax credit ... and that’s just part of the cuts made.
The governor brushed aside mention of a special session of the General Assembly to deal with this crisis, perhaps because he can anticipate the likely grandstanding from within his own party that would result. Besides, pull the majority incumbents off the campaign trail right in windup of a big election year? Heaven forbid! And with this latest revolting news they’re going to have their hands full blunting a potential voter rebellion besides.
Instead, once again, the meat cleaver comes out instead of the scalpel. No mention is made of rescuing and reinforcing services in need of instant repair — education, mental health, trauma care, child welfare and so forth. All the past “tax breaks” to special interests remain on the books. Those aren’t being frozen like the homestead credit, even though they should be.
This latest thunderbolt to save the state money by making Greater Romans — and all Georgians who live in a county and/or city — pay more in local taxes is typical of the state’s approach. When they feel pain that is largely self-inflicted we’re the ones who are supposed to say “Ouch!”
Next: A few things apparently invisible in Atlanta.
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