Leaders facing dilemma on taxes
By Greg Gelpi| Staff Writer
Friday, August 08, 2008

The choices are tough:

Make Richmond County property owners pay more taxes and risk drawing their anger if the economy turns around.

Or, risk a $3 million loss for the school board and another $3 million for the city.

That's the predicament city and school officials were handed when Gov. Sonny Perdue announced a week ago that he was withholding $428 million from the Homestead Tax Relief Grant to help offset a projected $1.6 billion state shortfall.

Under the grant program, the state picks up part of the property tax tab and pays the city and school board on behalf of the taxpayer.

If the tax relief is not listed on tax bills, the city and school board won't be eligible for the funding relief from the state later, said Jack McAdams, chief financial officer of the Richmond County Tax Commission. But if it is included and the governor doesn't fund it, then the city and school board must pick up the tab, which totals $6 million.

The Augusta Commission will hold a special called meeting Monday to decide how to proceed, City Administrator Fred Russell said. The school board will need to make a decision as well. If Richmond County property owners don't get the benefit of the tax relief they could pay as much as $288 more on their annual tax bill. The exact amount depends on where you live in the county, with those in the Augusta city limits footing the largest amount.

Mr. Russell said the situation is frustrating because there has been no official word from the governor's office or anyone else at the state level.

"It's sort of like trying to balance your checkbook in the dark, and the bank won't tell you how much money you have," he said.

One "unofficial opinion" from a state tax assessors association suggests that tax bills include the tax relief, but Mr. Russell said he doesn't feel comfortable making decisions based on opinions from unofficial sources.

The governor's actions have potentially unbalanced the budgets of cities and school boards throughout Georgia, Mr. Russell said.

A delay in mailing tax bills, which would also postpone the arrival of revenue, could prove dicey, especially for the school board, Mr. McAdams said.

"At this time of year, they are usually calling daily asking when are the bills going out," he said.

Despite the confusion, Columbia County intends to send out tax bills today, said county Tax Commissioner Kay Allen.

Without the tax credit, the county will lose $1.45 million. The school system will lose $2.8 million, Grovetown $47,000 and Harlem $19,000, Mrs. Allen said.

The Georgia Municipal Association is advising cities to send out tax bills with the tax relief in the hope that funding will come, said Amy Henderson, public information manager. If funding doesn't come, the association recommends sending out a second tax bill to collect the shortfall from property owners.

The governor can withhold payment for the tax relief, but it will take an action of the General Assembly not to give the relief at all, Ms. Henderson said.

Columbia County Bureau Chief Donnie Fetter contributed to this story.

Reach Greg Gelpi at (706) 828-3851 or greg.gelpi@augustachronicle.com.

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