Info session scheduled on proposed homestead exemptions

If you would like to learn more about the proposed, expanded property tax exemptions in Decatur, including the school tax exemption for homeowners over the age of 65, a session will be held on October 20 at 6:30 p.m. at the Decatur Recreation Center at 231 Sycamore Street.  This will certainly be the best opportunity to learn more about the proposals before voters consider them on Election Day.  From the October edition of the Decatur Focus:

Decatur's Lifelong Community Advisory Board's Taxation and Affordability Committee is hosting a Third Thursday information session for Decatur residents to learn more about the new homestead exemptions that will come up for vote on the Nov. 8 ballot.  Join them to learn more.

A panel from the City Schools of Decatur and the City of Decatur will answer questions and provide information about these five homestead exemptions.  One of them is an exemption from school property taxes for homeowners over the age of 65--an exemption that expires in five years, when it will be reevaluated.

For more information about the Decatur for a Lifetime initiative or the board, contact Lee Ann Harvey at 678-553-6548 or leeann.harvey@decaturga.com.

City Commission considers tax proposals

Decatur’s City Commission will vote tonight on the school board’s proposed property tax millage rate for 2016. The school board previously voted to maintain its existing rate from 2015 of 18.66 mills. Decatur’s charter requires the City Commission to approve the rate proposed by the school board.

The City Commission will also consider calling an election to vote on several proposed homestead exemptions. This is for the exemptions authorized by the state legislature earlier this year for public referendum in November. The ballot measures would include adding a new school exemption for seniors, adding a new city exemption, expanding two existing city exemptions, and repealing a defunct exemption provision.

The meeting will take place at City Hall, 509 North McDonough Street, at 7:30 p.m. with the property tax-related items toward the beginning of the meeting.

School superintendent recommends steady millage rate

The superintendent and staff of the City Schools of Decatur have made a recommendation to the board of education to maintain the school system's property tax rate of 18.66 mills.  A copy of the presentation appears below, which includes a chart showing changes in the school millage rate over the past 15 years on slide 5.

Taken together with the City's reduction in its general millage rate for operations, the total millage rate for Decatur taxpayers is decreasing for 2016; however, rising property values in 2016 will cause many bills to be higher than in 2015.

Group asks voters to vote yes on sales tax

On May 24, ballots countywide and in DeKalb’s cities will include a question on reimposing a one-percent sales tax for educational purposes. A campaign calling itself “SPLOST for Schools” wants the penny sales tax renewed. Brookhaven Patch reports:

DeKalb Group Pushing for Renewed School Tax 

DEKALB COUNTY, GA -- A pro-school tax group is urging voters throughout the community to renew a special local option sales tax for the DeKalb school system.

SPLOST for Schools says the E-SPLOST's renewal is vital for the county. The measure, which will appear on DeKalb ballots on May 24, must pass county-wide in order for DeKalb County School District, City of Decatur Schools, and Atlanta Public Schools located in DeKalb to receive continued funding for capital improvements. Districts use SPLOST monies for new construction, facility improvements, technology upgrades, safety enhancements, and capital equipment.

Dr. Merrill White, president of the Charter School Parent Council, believes that SPLOST funding is necessary to avoid raising property taxes.

“Let DeKalb County visitors, shoppers, and all residents continue to pay the one cent sales tax to keep schools safe, build new schools, build additions to schools, secure new buses, replace outdated equipment, and bring the computer age to all public schools,” she said…

Because City of Decatur and Atlanta schools are impacted by the SPLOST vote, residents of those cities are encouraging their fellow residents, as well as friends throughout DeKalb, to vote YES. Decatur parent Christa Sobon believes there may be some who have been “generally dissatisfied with the direction of DeKalb County and may want to ‘send a message.’ Others may assume it does not affect Decatur. Potentially left in the balance are our teachers and kids.” She believes that DeKalb, Decatur, and Atlanta school districts are all three being led by strong superintendents who have demonstrated integrity and a desire to put students first… 

The AJC has reported that there is not a project list yet for how the revenues will be used, but that public hearings will be held and a detailed list will be adopted later in the year.

Governor signs Decatur homestead exemption bills

Governor Deal signed legislation yesterday that will put five separate questions on November ballots to expand homestead exemptions in Decatur. Deal signed Senate Bill 339, which authorizes a referendum on increasing the basic homestead exemption (known as the GH1) from $20,000 to $25,000. SB 340 allows a vote on increasing the exemption for homeowners over 65 (GH2) from $1,000 to $10,000. SB 342 makes another ballot question that would create a new $15,000 exemption (GH3) for homeowners over 62 with household income under $50,000. SB 341 repeals an old cap on exemption amounts. SB 343 authorizes a vote to create an exemption from school taxes (excluding school bond taxes) for homeowners over 65. Voter approval of these measures would reduce property taxes for eligible homeowners by decreasing the taxable value of their homes. If approved on Nov. 8, 2016, homeowners would become eligible for the homestead exemptions in 2017. The new school exemption would expire in 2021 unless it is renewed.

City Commission levies school bond millage rate

The City Commission has adopted a new school bond property tax rate of 1.57 mills. The motion to approve the new rate, which will apply to 1st installment property tax bills for 2016, carried 5-0 during a public meeting tonight. The rate enables the first debt service payment toward the $75 million school bond issuance which was approved by voters on November 3 last year. The City of Decatur Schools will use the bond for capital improvements.

As Mayor Patti Garrett noted during the meeting, the 1.57 rate is lower than the average bond millage rate of 2.69 mills that was projected by the City of Decatur Schools when the bond was being debated last year.  The new millage rate results in a combined Decatur millage rate of 32.23 mills compared to 30.66 mills in 2015 and 33.5 mills in 2014.  City Manager Peggy Merriss said that the rates are subject to change in future tax installments.

Tax implications

The impact of the new tax rate will vary according to property value. Taxes for a resident with a $500,000 home will go up by about $400 for 2016.  Decatur bills in two installments; charges would the same each installment unless the school bond millage rate is increased or the property owner's value changes in 2016.  Prospective tax charges according to value are shown in the chart below:



According to 2015 digest data, the median home value in Decatur is $380,000. Homeowners with that value would experience a $300 tax increase for 2016 compared to 2015. (Zillow shows a higher median home value at $435,000 based on sales data, but local taxes are based on assessments made by DeKalb County in accordance with factors mandated by state law.) 

Exemption considerations

Seniors will not be exempt from the new school bond charges. School exemptions known as the GS-1 (age 62), S-1 (age 62), S-2 (age 80), and S-3 (age 70) do not apply toward the school bond charge. Property owners with the disabled veterans homestead exemption or a year’s support exemption will be partially exempt from school bond charges. Year’s support provides an exemption of taxes for one year upon the death of a spouse if approved by the DeKalb County probate court. About a dozen homeowners in Decatur meet these criteria.

New exemptions still pending

The City Commission and Board of Education have proposed expanded tax relief including an exemption from school taxes for homeowners over 65. These proposals have been approved by the Georgia General Assembly. If approved by voters in November, these expanded exemptions would go into effect in 2017. School bond charges will continue to apply regardless of any new exemptions.

Georgia House OKs Decatur’s senior school exemption

The Georgia House of Representatives has approved Decatur’s proposal for a homestead exemption for homeowners over the age of 65 from school taxes. The vote on Senate Bill 343 carried the House this morning by a vote of 155 to 1. The bill had been postponed for the past several legislative days. If Governor Deal signs the bill into law, it will appear on local ballots in November for voter approval. The exemption would go into effect in 2017.

The dollar amount of property tax savings for the exemption will vary by homeowner. In order to get a sense of how much money you may save, look at your last City of Decatur property tax bill. On the line that says “School,” look to the right at the amount in the column that says “Total Due.” Assuming the exemption is approved, if you are over 65 and your home in Decatur is your principal residence, you would no longer see that charge from 2017 until at least 2021, when the exemption would expire unless it is renewed.  Property owners over the age of 80 with income under $40,000 were already exempted from local school taxes, so this will primarily benefit homeowners between the ages of 65 and 79.

The new exemption and existing school exemptions do not apply to the school bond that was approved by voters last November. Only disabled veterans will be partially exempt from school bond charges.

Last week the House also approved four other bills that will expand Decatur’s homestead exemptions beginning in 2017 if approved by voters this November.

Decatur homestead exemptions: current and proposed

If you are applying for an additional homestead exemption for your home in Decatur for 2016, please note that these are the exemptions the City and school system currently offer:

Current

• GH1—Basic homestead exemption 
• GS1—Exemption for homeowners over 62 with household income under $25,000 
• S1—Exemption if joint income under $10,000 excluding retirement income 
• GH2—Exemption if over age 65 
• S3—Partial school exemption if over 70 
• S2—School exemption if over 80 and federal adjusted gross income is less than $40,000 
• DV—Exemption for disabled veterans 

The additional exemptions that the City and school system have proposed for approval by the Georgia General Assembly and by voters are as follows:

Proposed

1. Expanded GH1 homestead exemption 
2. Expanded GH2 exemption 
3. New exemption for homeowners over 62 with household income under $50,000 
4. New school exemption for homeowners over 65 

These proposed exemptions would have to be approved by voters before going into effect in 2017. You cannot apply for these proposed exemptions yet. These exemptions would expand or be in addition to, not replacements of, the existing homestead exemptions. None of the exemptions listed above (except the disabled veterans’ exemption) would apply to the school bond that was approved last November.

Sen. Parent sponsors 5 homestead exemption bills

State Senator Elena Parent (D-Atlanta) introduced five local legislative bills on Thursday to expand homestead exemptions in Decatur. Senate Bill 339 would increase the basic homestead exemption (known as the GH1) from $20,000 to $25,000. SB 340 would increase the exemption for homeowners over 65 (GH2) from $1,000 to $10,000. SB 342 would create a new $15,000 exemption (GH3) for homeowners over 62 with household income under $50,000. SB 341 would repeal an old cap on exemption amounts. The bills would reduce property taxes for eligible homeowners by decreasing the taxable value of their homes. The bills resemble House Bill 670, 672, and 673 which did not make it out of the House of Representatives during the 2015 session, but city officials and state lawmakers are more confident that the proposed tax relief will be approved this time around.

SB 343 is a new proposal supported by the City Schools of Decatur and the Decatur City Commission that would create an exemption from school taxes (excluding school bond taxes) for homeowners over 65.

If the bills pass the Georgia General Assembly, they would have to be signed by the governor and approved by voters before they would go into effect in 2017. The new school exemption would expire in 2021 unless it is renewed.

Decatur prioritizes property tax relief

The following is a press release from the City of Decatur on its legislative priorities for the 2016 session of the Georgia General Assembly:

City of Decatur General Assembly Legislative Priorities

The City of Decatur’s primary interest during the 2016 Georgia General Assembly session is to support the passage of homestead exemption legislation amending and creating tax relief for our resident homeowners, particularly for seniors. Mayor Patti Garrett said, “Property tax relief for long-time residents who have been a part of our community for many years is our top priority, and we are focused on getting homestead exemption legislation passed this session.”

School Board Chair Annie Caiola said, “Over the past decade there have been significant austerity cuts to the State’s education budget, meaning that local residents have had to pay more and more property taxes in order to maintain the strength of our school system. The increasing property taxes are forcing too many seniors out of our community, and it needs to stop. The City Schools of Decatur School Board strongly supports legislation that will exempt our seniors from ad valorem school taxes.”

Proposed homestead exemption legislation would authorize referendums in November, 2016 and, if approved by the voters, would be effective in 2017.

In the 2015 General Assembly HB 663 was adopted by the Georgia House of Representatives that authorized a referendum to annex areas to the east of the existing city limits of Decatur. “We have new City leadership, a new School Superintendent and new Board of Education leadership,” said Mayor Garrett, “and we need to look at a variety of issues, including annexation, so we will not be pursuing adoption of HB 663 by the Georgia Senate during the 2016 session.”

It is anticipated that the City Commission and the Board of Education will revisit annexation later in 2016 to determine what options should be pursued in the future.

Contact: Peggy Merriss, peggy.merriss@decaturga.com, 404-371-4104 or Linda Harris, linda.harris@decaturga.com, 678-553-6512