State cuts erase tax rollbacks

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Augusta leaders expressed alarm Wednesday at Gov. Sonny Perdue's decision to freeze $428 million in state grants targeted this year for homeowner property-tax relief.

For the city of Augusta and Richmond County, the loss of tax revenue traditionally rolled back would total more than $6 million and would result in higher tax bills, said City Administrator Fred Russell.

A homeowner with a home valued at $32,500 or greater would pay $84.45 more in city taxes in the suburban area and $135.98 in the urban area. That homeowner also would pay $154.74 more in school taxes this year, according to city tax officials.

Gov. Perdue announced the freeze Friday as part of a series of moves to mitigate a $1.6 billion deficit in the state budget. City officials have yet to be officially notified what to do, Mr. Russell said, and state Revenue Department officials say they are not authorized to speak on the matter.

Mr. Perdue's spokesman Bert Brantley said the governor will consider releasing the grants if the economy improves.

"Through the media we've been informed at this point the governor is placing on hold these grants that have about a $6 million impact on our community," Mr. Russell said. "If it's not paid for by the state as it has been in the past, it's got to be made up by some local tax dollars. What this money is for is to help roll back our property taxes. Without it, we've got an additional hole in the budget we're going to have to look at."

The Richmond County school system also would be short more than $3 million.

"That $6 million is total between us and the schools, but it's unfortunate the state's going to try to balance their budget woes on the back of the localities," he said. "And it's not only here, but it's every locality in the state."

Association County Commissioners of Georgia Executive Director Jerry Griffin has advised counties to hold off on printing and mailing property-tax bills. He said the media was told of the governor's decision Friday, but the association was not given any warning.

"We are currently working with the governor's office to determine the options for counties," he states in an urgent message to county officials.

Columbia County Commission Chairman Ron Cross said Wednesday that officials there plan to meet with the county's tax commissioner next week to discuss figures and how many homes could be affected by the change.

However, he said he doesn't expect the change would require a millage increase, adding that the county could turn to its "good operating reserve."

"It would have to be very drastic for us to consider that (a millage increase)," he said.

Mr. Russell said city officials had planned to send out tax bills around Sept. 15 or earlier but now don't know what to send out.

"We need to make a decision on whether or not we add that, which would increase taxes tremendously for individual homeowners to make up that money," he said. "It's advertised as part of the tax bill itself. The rollback is played in there. If that rollback doesn't exist, I think we're cutting new cloth. I'm not sure anybody knows what we're supposed to do at this particular point in time."

Night City Editor Preston Sparks contributed to this report.

Reach Sylvia Cooper at (706) 823-3228 or sylvia.cooper@augustachronicle.com.

Comments

Interested Citizen

Looks like the homeowner is paying the price again!!!!!!!

Landlord

And the rent will go up to cover the tax increase for investment property owners.

WW1949

Programs have to be cut, benifits for state and local workers and get back to a more reasonable pay system. Some may have to get a second part time job.

disssman

I don't think the problem is state and local workers. I believe it is giving money to programs like the DDA and other non-profits, many of which are nothing but office holders making far more than they are worth. Until we have a budget that shows what, where, when and WHY something is funded, we will all be paying more. Try it, go to the ARC web site and look at the budget. What you get is a document that shows who gets money, it just dosen't say why they need the money! Wake up folks, if we don't start cutting the fat we will all be broke sooner than we thought.

DeborahElliott2

With minimum wage workers, homeowners will again show that they will falter in house payments resulting in the same stagnation of the economy due to foreclosures. This will NOT help the economy one bit! So much for the lottery helping the educational funds!

No_Longer_Amazed

More property tax, more school tax, and NOT MENTIONED higher solid waste (garbage pick-up) fees. It's going to be interesting to see this year's property tax bills.

unnamed

Columbia County already increased our assessment 32+% this year. Our appeal is pending. Now add to this the credit placed on hold by Gov. Perdue. I am guessing our bill will be $500-600 more this year. Alot of people won't notice what all this means until they get their new mortgage payments readjusted to cover taxes.

LaTwon

if we only had a 175mil trolley or a stadium or a dragstrip or extend the canal down ellis. this shows how out of touch they all are down there. feed em cake........

No_Longer_Amazed

At least waste multi-thousands of dollars for a study or two.

NicoleKelly

To think all of you probably voted for Perdue!!!!!!!!

No_Longer_Amazed

Hi, NicoleKelly. How's you Mother doing?

gagirl40

No Longer Amazed..I agree. They need to spend $6 million dollars on a study to find out how we can make up the $6 million dollars we're not going to get this year. LaTwon, I agree with you too. If only we had a play ground or something we could spend $6 million dollars building and improving and then not charge admission. Where is the County Commission when we need them?

disenfranchized

I think the property tax increase is unfair to all citizens how have worked hard to have something. I have no problem paying my fair share in cases like this, however it should be fair. I think it should be voted on by the people and in my opinion I would rather see something like a 1 cent sale tax increase. To make sure that everyone in the county that utilizes the govermental services payed there fair share.

knieejerkinreaction

sheepie, sheepie, sheeple!!!!

mojo

Amazing - first off the additional 1 cent sales tax increase has already passed - Richmond county keeps bumping up rates so they have to wait for the state to raise the maximum millage rates they can charge. Employee wages?! What does that have to do with anything? We're paying $230k a year to run the public school system into the ground. The outcome is simple and predictable - Fred "Tax'em All We Can" Russell with make yet another plea for a tax increase. After all it's only been a week since his last plea. What he won't talk about is all the pressure brought to bear to increase assessments.

halffull

I thought the answer to our problems was a Republican Conservative Governor, House and Senate in Georgia which would lead to a fiscal windfall when connected to a Republican Conservative President. Dang if we are not in more debt under this utopian concept. Trillions on the national level and billions on the state. I guess as long as it is fair and balanced it's all good.

Old_Chevy

Homeownership will be a thing of the past. Taxed into foreclosure.

knieejerkinreaction

Time to trimthe fat, county cars, cell phones, gas cards, 1 person working on a pothole and 15 standing around looking. Plenty of places to cut whichwould hurt services, not hard to find either!

knieejerkinreaction

Time to trim the fat, county cars, cell phones, gas cards, 1 person working on a pothole and 15 standing around looking. Plenty of places to cut which would not hurt services, not hard to find either!

LaTwon

i thought the state was considering doing away with income taxes? how long has that been? 1 year? morons and liars and theives. incapable of forward looking rational reasoning. why the hell do we need a new library? if u have been to the library
downtown this millenium raise your hand??????

mgroothand

LaTwon: Try living in the state of Florida where there is no state income tax. The taxes on everything else are outrageous. There is no state of tax utopia, New Hampshire is closest.

Lou Stewall

A huge amount of SPLOST funds are available for the RC School Board to build new schools. We don't need to build, we need to close and sell schools due to declining enrollment. So turn that money over to the board and the city to alleviate the loss of grants.

LaTwon

grooty i am only saying that the morons were going to eliminate that tax previously and now they r broke. i visit fla.
property taxes pay the way down there. i also think the 1% marta tax should be staying home. why do we finance rapid transit in atlanta?

North Richmond County

if you had a canal, stadium, drag strip, or trolley or light rail. This wouldn't hurt the augusta metro economy one bit. Because all those things would create a tax base by themselves. Build a mega water park please.

donnymack

Go back to the tax cuts,the war,the rebuiding of Iraq etc. that is where the problem started. The feds cut the states,thestates cut the municipalites,the municipalities have to charge the residents. When any person or government spends more than they take in it spells nothing but doom and gloom.

lifelongresidient

since the school portion of the tax makes up over 65% of the total property tax liability why not get back to what the schools were designed to do and that is educate. davidson, do not have sports teams, johnson just got a soccer/cross country team oh wait!!! for those of you saying that johnson uses laney stadium,how was johnson's academic preformance prior to last year??? gee still graduating most of their students w/smaller class sizes cost efficent education, almost if not all pass the crct test, and most go to college or at the very least become productive members of society which reduces the drain on society by the need to hire more cops....sounds like a good recipe to me. why not discontinue all sports programs until the budget is balanced and there is sufficent funds available for extra curricular activities without having to GUT the taxpayer on a yearly basis

No_Longer_Amazed

donnymack: I agree. The A-RC Commission and the RCBOE need to practice fiscal responsibility by not spending more than they take in. PAYGO.

halffull

Maybe we can hold up on the 10 million welfare check to MCG to cover the 6 million dollar shortfall!

LaTwon

u think we have lawsuits now? open a water park. the guy in evans couldnt afford the insurance, it was more than his revenue. so james brown arena is a tax generator instead of a liability? rediculous.........

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