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Efforts to revise Augusta's tax system on hold until 2013

New commissioners to address property tax

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Efforts by Augusta officials to come up with a plan to fix the consolidated government’s flawed property tax system have stalled after a couple of meetings.

Brigham  FILE/STAFF
FILE/STAFF
Brigham

Augusta Commission member Jerry Brigham, whose term ends Dec. 31, said it will be up to the new commissioners to take up the issue in 2013.

Brigham had headed a committee of elected officials, department chiefs and other staff members, which met once in September and again in October to discuss the issues associated with Augusta’s property tax system and what might be done to revise it.

They were set to meet again this month, but Brig­ham said he called off the meeting when he didn’t see how progress could be made before the end of the year.

“I didn’t see the committee members coming forth with a solution,” he said.

Brigham said officials were stymied by the complexities of issues involved. The desire is to fix the problem in a way that continues to provide the same services, while remaining “revenue neutral” – collecting the same total amount of property taxes as the current system.

“It’s not that we don’t want to try to fix it, we just don’t know how to fix it,” he said.

Augusta’s two-tiered tax system dates back to the consolidation of Richmond County and the old city in 1996.

Officials say the intent was to continue supplying the services city dwellers already had – such as trash pickup and better fire protection – without suburban residents having to supplement them. The trouble is that over the years government services offered in the urban and suburban area have become similar in most respects, and what has evolved is a system that pays for those services in different and unequal ways.

The most obvious problem lies with trash service. Suburban residents pay a flat fee added to their property tax bills. Urban residents pay a combination of millage rates and fees, which means some residents subsidize the trash service of others.

Brigham said he’s not certain the political will is there to take on a problem that could anger many voters, which is one reason the issue has lingered this long.

Something else, however, could soon force a solution.

A bill, introduced two years ago by a Republican legislator from Snellville, could require local governments to remove all nontax fees – such as Augusta’s trash fee – from property bills. State Rep. Brett Harrell said he expects the state House will take up his bill again this session, and if it is passed, Augusta might have to revise its tax system before property tax bills are mailed out next fall.

Harrell said he introduced the bill because having such fees on property tax bills has the potential to create situations that lead to the government placing liens on property and seizing people’s homes for unpaid fees.

In the case of other government services, such as city water, if you fail to pay, the government stops providing the service.

That’s not so when fees are on tax bills.

“In fact the local government is saying whatever fee I put on my tax bill is more important that anything else,” he said.

Harrell also pointed out that nondeductible fees included on property tax bills are often mingled taxes when homeowners file their yearly income tax.

“This billing mechanism has potentially led to thousands of erroneously filed tax returns,” he said. “It is confusing to the home owner.”

The thousands of erroneous deductions also mean less tax collected on the part of state and federal authorities, Harrell said. He estimates Georgia is losing between $5 million and $10 million in revenue as a result of theses types of fees on tax bills, which he has found in more than 40 counties in the state.

Harrell said ideally, counties should build such fees into the millage rate to pay for services.

“It is tax deductible if built into the millage rate,” he said.

When he is not in the legislature, Harrell works as salesman for Advanced Disposal, a company that has trash hauling contracts with many counties and municipalities in Georgia, including Augusta.

He said he knows some might see a conflict of interest in his sponsorship of such a bill, but he assured there is none.

“I’m sure there are a lot of people within the industry that don’t approve of my bill,” he said. “But there is a bright red line between what I do for the company and what I do at the capitol.”

Harrell said he might not be the primary sponsor of the bill this session, anyway. He said he expects a “higher profile” legislator will take up the bill and champion it through to the governor’s desk.

“It may not be my bill anymore, but this issue is definitely coming back,” he said.

If the legislation does become law, it could force officials to find a solution for the trash service issue, but that is only part of the problem.

Brigham said once officials unravel the trash problem, the rest of the knot of related issues will start to come loose. Each will need to be addressed as one of the many factors involved with a comprehensive solution, he said.

One of the problems is not many people within the government have a clear understanding of all the issues involved. He’s not sure any of the incoming commissioners are up to speed either.

“There are not many people who can understand the problem we are grappling with,” he said.

Commissioner Bill Lock­ett, who also served on the committee, said the two meetings opened his eyes to the difficulty of the problem officials have before them.

He’s been studying the issues and has looked to other governments with similar problems around the state, but hasn’t found any easy answers.

“As far as we can ascertain, no one has ever done what we are attempting to do,” Lockett said.

Lockett said he thinks the next commission can tackle the problem and figure it out, but it won’t be easy and the solution probably won’t be very popular with many property owners.

“This is something that I think we can do, but no matter what, we are going to anger a good percentage of the citizens of Richmond County,” he said.

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omnomnom
3964
Points
omnomnom 12/16/12 - 06:32 am
2
0
tread lightly, keep the

tread lightly, keep the suburbs happy, the everyday (wo)man are the ones keeping this consolidated city thing afloat

Riverman1
79416
Points
Riverman1 12/16/12 - 08:00 am
5
0
Decrease all services to the

Decrease all services to the lowest currently provided anywhere in the county and charge everyone the same. See how easy that is.

OpenCurtain
10049
Points
OpenCurtain 12/16/12 - 08:21 am
4
0
OM - RM1- Mr. D - Tul - SIB4 - REB - CG -LL and many others

My simple 1 word solution.

DE-CONSOLIDATION

A South Side petition to put it to a vote in 2014 has good odds of being able to collect enough signatures.

Will have a friend check with the BOE this week, for the rules.

Riverman1
79416
Points
Riverman1 12/16/12 - 08:42 am
3
0
OC

Do you know yet how the referendum works? Does the entire "city" have to vote yes to let the area leave? If so you better let West Augusta in on this. Both areas could vote yes and overcome the old city votes.

dichotomy
30620
Points
dichotomy 12/16/12 - 10:30 am
2
0
We are NOT part of Augusta.

Except for the fact that we are already in an incorporated area, the taxpayers and citizens of South Richmond County would have the same legal argument as the folks in Sandy Springs GA had when they incorporated to avoid being over taxed and under served as a "special tax district" in Fulton County and controlled by DOWNTOWN Atlanta politicians, which in effect is what we are to Augusta. We are not really part of Augusta since they tax us with a dual standard, illegal, "special tax district". August has FAILED to legally discharge their responsibilities under GA law and under our Charter to provide a uniform tax system. We are a "special tax district" and South Richmond County is NOT part of Augusta. We are, in reality, a "special tax district" in RICHMOND COUNTY, controlled by the DOWNTOWN Augusta politicians.

"Thirty years of complaints about how the county was diverting tax money from Sandy Springs to the southern part of the county had gone unheeded."

"There also were repeated complaints about the seven-member county commission, dominated by the southern part of the county, making land-use decisions against the wishes of Sandy Springs residents and businesses."

"Local services to unincorporated areas have been provided by the county through a special tax district in those areas," DiJulio said. "They were charging about $50 million for local services in Sandy Springs and giving us about $24 million of services. That wasn't the worst part of it. We were being overzoned, underrepaired, with stoplights that don't communicate, and insufficient police."

"By an astounding 94 to 6 percent vote in June, the nearly 88,000 residents of Sandy Springs, an unincorporated area immediately north of Atlanta, approved incorporation. The overwhelming vote in favor of incorporation showed how frustrated residents were with Fulton County government."

We need to organize and hire an attorney.....maybe one from Sandy Springs.....certainly not one who is a member of the local cabal.

dichotomy
30620
Points
dichotomy 12/16/12 - 11:19 am
2
0
Too stupid or simply gutless?

Sounds to me that our commissioners are admitting that they are too stupid to figure out the tax system they FORCE down the throats of the residents of South Richmond County and, to some extent, other suburban areas of the county. Well hey, that's no big surprise to me. So we get "hey, we are too stupid to figure it out and we know it's illegal but we will just keep doing it and maybe the next guy can fix it". And they wonder why people go off.

If we have 10 commissioners, a mayor, an administrator, a slew of TAX Commissioner Office employees, and a private consultant who collectively cannot figure out how to implement a uniform property tax system based on uniform services provided to ALL areas of the county....then we are in deep DO-DO.

I suspect that the sticking point is that, in that process, they would have to acknowledge that South Richmond County is NOT being provided uniform services and that we are being taxed....and FEE'd.......as if we were being provided equal services. Which we AIN'T by ANY STRETCH OF THE IMAGINATION.

In other words.....WE ARE NOT PART OF AUGUSTA.......we are a SPECIAL TAX DISTRICT......robbed of our tax revenue and left to die on the vine in favor of subsidizing DOWNTOWN development and redevelopment and "city" services.

We ARE Sandy Springs, GA vs. Atlanta/Fulton County circa 2004. Raise up South Richmond County. Hire an attorney. Hell....hire a TEAM of attorneys for a class action lawsuit. We can raise the money and do this. After 17 years of this crap we all KNOW that our local government is too stupid, too crooked, and too racially movtivated to keep rural and suburban taxpayers subsidizing the DOWNTOWN, OLD CITY residents. Just look at our most recent election. Do you REALLY think that Marion Williams or Fennoy are smart enough, motivated at all, or even concerned about implementing a uniform property tax system?

They only way this will EVER be cured is to blow this thing apart a courtroom....preferably in front of a judge that is from out of this area, has no political ties to this area, and does not own any property in Richmond County. In other words, all local judges should recuse themselves.

Little Lamb
43831
Points
Little Lamb 12/16/12 - 07:39 pm
1
0
Too Stupid

If outgoing commissioners Jerry Brigham and Joe Bowles (both accountants) cannot figure how to levelize taxes, how can Marion Williams (preacher) and Bill Fennoy (community activist) be expected to succeed?

Joe Bowles once threatened to sue the city if they don't start equalizing taxes. Let's see next year if his threat was empty.

Little Lamb
43831
Points
Little Lamb 12/16/12 - 07:40 pm
1
0
Consultant

Saying that no one in city government can come up with an idea is a perfect set-up to hire a consultant to provide a $500,000 study recommending the new tax system.

Mark my words. Studies are the Augusta way.

dichotomy
30620
Points
dichotomy 12/16/12 - 11:02 pm
1
0
"not many people within the

"not many people within the government have a clear understanding of all the issues involved"

WE understand it. We are getting screwed and not enjoying a damned bit of it.

Just how complicated can this be? There must be something REALLY big in the difference in tax rates some of us are paying for them to be this afraid to say "hey, everybody pays the same taxes based on county wide property valuations using the same valuation methods and receiving the same services". If everyone is receiving the same level of service (and we know we are not) and everyone's property is evaluated according to fair market value (and we know it's not).....then you set a millage rate and collect an EQUAL tax from everyone. It not that damned complicated unless someone is trying to continue to skew the system in favor of the old City being subsidized like it has been for the past 17 years.

bubbasauce
20573
Points
bubbasauce 12/17/12 - 11:47 am
1
0
Well said Dichotomy, I just

Well said Dichotomy, I just wish the average person knew what you were talking about so maybe we could get going on with some kind of lawsuit to quit this thievery of South Augusta!

bubbasauce
20573
Points
bubbasauce 12/17/12 - 11:54 am
1
0
And yes Augusta loves to do

And yes Augusta loves to do studies and hire consultant's to tell them what to do because they are totally lost! Then when something goes wrong they don't have to take responsibility for the incompetent decisions that were made.

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