General Assembly adopts tax changes

On the final day of its legislative session, the Georgia General Assembly approved several bills involving taxes.

The most significant was Senate Bill 369, which authorizes up to a ½ percent sales tax increase in Atlanta for MARTA expansion, a ¾ percent sales tax increase in Fulton County for transportation, and up to a ½ percent sales tax increase in Atlanta for transportation improvements and congestion reduction. State Senator Brandon Beach said on the final night of the legislative session that Fulton County and cities outside of Atlanta could authorize an additional ¼ percent sales tax for transit. In other words, both Atlanta and Fulton County could each increase their sales tax rate by 1 percent with differing ratios going toward mass transit and roads.

Narrower bills dealing with ad valorem tax breaks for specific industries also passed. House Bill 769 provides a personal property tax exemption to boat dealers and all-terrain vehicle dealers. HB 769 was sent to the governor on April 1. HB 935 authorizes a freeport property tax exemption to fulfilment centers such as Amazon or Walmart that ship merchandise ordered by consumers online or by phone. HB 937 gives a sales tax break for the new Falcons stadium and other projects of "competitive regional significance."

HB 960 makes several changes to taxes administered by the state. Section 1 of the bill clarifies matters of taxpayer confidentiality. Section 2 changes the interest rate calculation for state-issued tax refunds. Section 3 changes the interest charged on past due state taxes from 1 percent to the annual prime loan bank rate. Section 4 changes the penalties for failing to file a return for taxes held in trust for the state. Section 5 amends procedures for tax tribunals. HB 960 is the result of a study committee that found the interest rates were too high.  Neither SB 369 nor HB 960 have been sent to the governor yet.

The House of Representatives did not approve income tax rate reductions (SB 280 and SR 756) or property tax assessment caps (SB 298 and SB 259) proposed by the Senate.

Bill protects deployed troops from tax penalties

The Georgia General Assembly has passed a bill requiring property tax collectors to waive penalties and interest for military servicemembers if they pay the principal owed within 60 days of returning from a combat zone. House Bill 991 started out as a bill modifying the definition of the value of conservation-use property but was replaced by the House Ways & Means Committee with the waiver for deployed taxpayers. Known as the “Returning Heroes Act,” the bill heads to the governor’s desk next.

The bill would be financially beneficial to military personnel, effectively allowing an interest-free deferral of property taxes due while deployed. That being said, the bill could also lead to unintended consequences in some cases. For example, if a tax commissioner does not know that the reason for delinquency is military service, the tax commissioner could lien and levy the property before the taxpayer’s return. Although the penalties and interest could subsequently be waived, getting the lien cancelled would be annoying for the taxpayer and the tax commissioner. It would be in the deployed taxpayer’s best interest to communicate proactively either prior to deploying or from overseas to ensure that the tax commissioner is aware of his or her deployed status to prevent escalated collection action.

A second wrinkle is that the bill does not distinguish between deployed taxpayers’ homes of record versus investment properties. I am not sure that it is the intent of the General Assembly to grant a senior officer who may own or co-own a dozen investment properties to defer taxes during what could be a 400 day deployment. While the Returning Heroes Act is a great idea that should be approved, in hindsight it may have been better to specify that this waiver shall apply to homesteaded properties.

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.

City Schools of Decatur Homestead Exemption Tabled By Georgia House of Representatives – Your Action Needed

By Linda Harris

On Tuesday, March 8, 2016 four of the five City of Decatur’s homestead tax exemption bills passed the Georgia House of Representatives.  With the previous adoption by the Georgia Senate on February 11, 2016, those four separate pieces of legislation will move forward for the Governor’s signature.  However, SB 343 that provided the most significant tax relief from school taxes to citizens 65 and older has been delayed to a later date upon a motion by Representative Beth Beskin of Fulton County.

Representative Mary Margaret Oliver who represents part of the City of Decatur challenged the motion arguing that Rep. Beskin’s efforts to punish Decatur’s older citizens based on Atlanta’s refusal to grant similar relief to seniors was pure partisan politics.  “I am hopeful we will be able to get over the partisan obstacle created solely by Representative Beskin. I believe the Republican leadership will ultimately be supportive of local control to support the success of the Decatur school system and good management,” said Rep. Oliver.  Rep. Beskin stated to Decatur Mayor Patti Garrett that her motion to table had nothing to do with Decatur or the legislation itself.

“The City of Decatur and the City Schools of Decatur appreciate all of the efforts of Decatur legislators who have worked hard to get these bills passed including Senator Elena Parent and Representatives Mary Margaret Oliver, Howard Mosby, Rahn Mayo and Karla Drenner,” said Mayor Garrett.  “Our delegation members understand the need for property tax relief, particularly for our seniors, and I hope the Republican leadership will also understand our position and consider the merits and value to the citizens of Decatur of the senior homestead tax exemptions.”  The homestead exemption legislation was supported by the Decatur City Commission and the Decatur Board of Education who were acting with the support of the residents of the City of Decatur, including members of the Lifelong Community Advisory Board, a very active group of senior homeowners and the business community.

“It is unsettling that legislation designed by Decatur’s elected officials for the benefit of Decatur’s senior citizens, that would have no impact on anyone other than Decatur residents, has been met with opposition,” said Board of Education Chair Annie Caiola, who added, “We encourage our residents to join us in voicing these sentiments to the Republican leadership. This also happened last year when Decatur’s proposed senior exemptions failed in the eleventh hour due to similar unprecedented maneuvers.  It is our sincere hope that CSD’s homestead exemption legislation will be quickly put back on track to pass.”

To voice your opinion about the City Schools of Decatur homestead exemption, please contact Rep. Beth Beskin (beth.beskin@house.ga.gov); Rep. Jan Tankersley (jan.tankersley@house.ga.gov);  Rep. Jon Burns (jon.burns@house.ga.gov); Rep. Matt Ramsey (matt.ramsey@house.ga.gov);  Speaker of the House David Ralston (david.ralston@house.ga.gov); and, copy Rep. Mary Margaret Oliver (mmo@mmolaw.com).

Make sure they know that SB 343 would provide tax relief to senior property owners and that it is local legislation supported by the City Schools of Decatur, the Decatur City Commission and all of the members of the General Assembly that represent the City of Decatur.

State House approves tax exemption for fulfillment centers

The Georgia House of Representatives has unanimously approved a bill that would exempt merchandise in stock at fulfillment centers from business inventory taxes in jurisdictions that offer a freeport exemption.  Normally, businesses with inventory are subject to business personal property taxation on tangible items including equipment and inventory.  House Bill 935 excludes goods and wares at fulfillment centers with a freeport exemption from personal property taxes when those items are stored for less than 12 months.  Fulfillment centers are used by companies such as Amazon to fulfill orders placed by customers online or by phone.

The City of Decatur does not offer a freeport exemption, so this would not affect fulfillment centers if we had any.  DeKalb County offers the freeport exemption, and this could expand tax relief to companies operating fulfillment centers in the county.

Lawmakers propose decrease in state's top marginal tax rate

The Atlanta Journal-Constitution reports that two bills under consideration at the Georgia General Assembly would slightly reduce the state's longstanding top marginal income tax rate of 6 percent.  They also report that the governor would rather build up the state's reserve fund than approve a broad tax rate cut.  The proposals may not make it to the floor for a vote because it would put legislators in an awkward position:

It’s an election year — tax-cut proposals advance in Georgia 

STATE & REGIONAL GOVT & POLITICS | By James Salzer - The Atlanta Journal-Constitution 

Updated: 6:28 p.m. Thursday, Feb. 25, 2016 | Posted: 6:05 p.m. Thursday, Feb. 25, 2016

#It’s an election year, and that means lawmakers probably can’t end the 2016 session without some kind of tax cut, or at least a last-minute debate on one.

#And state Senate Finance Chairman Judson Hill, R-Marietta, has just the ticket for election-wary politicians.

#The Senate could vote as early as Monday on proposals from Hill. One, Senate Resolution 756, is a proposed constitutional amendment that would make a small reduction in the state’s 6 percent maximum income tax rate if the state has relatively full reserves and revenue collections continue to rise.

#The other, a reworked House Bill 238, would cut the maximum state income tax from 6 percent to 5.4 percent, reduce the number of itemized deductions, raise personal exemptions and eliminate the state’s corporate net worth tax that companies pay.

#Both measures overwhelmingly passed his committee this week. Hill calls them a conservative approach to tax reform. “Would I like to do more?” Hill said. “I would, but something is better than nothing.”

#Gov. Nathan Deal warned lawmakers off any major tax cut bills this session, saying his goal was to build the state’s reserves to $2 billion before he leaves office. There has been little talk of tax cuts this session beyond the usual special-interest breaks...

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.

New bill encourages cities and counties to hammer out sales tax disagreements

A bill before the General Assembly would impose a "nuclear option" against counties and cities that fail to resolve distribution formula disputes over local option sales tax (LOST) revenues.  If counties and cities do not agree within a set time frame, the LOST would be terminated.  Once a jurisdiction has lost the LOST, they could not reinstate it for at least five years.  From the Bainbridge Post-Searchlight on Feb. 12:

Legislation introduced that will change LOST policies between cities, counties

State Representative Jay Powell (R-Camilla), Chairman of the Ways and Means Committee, which sets all tax policy in the House, introduced House Resolution 1344 and House Bill 1055, a constitutional amendment and enabling legislation, on Thursday. 

The legislation would impact negotiations between counties and cities over the distribution of the 1 cent Local Option Sales Tax (LOST), a major source of revenue for many of Georgia’s cities and counties, thus reducing their reliance on property taxes and giving property tax relief to millions of Georgia property owners.

“The way counties and cities are currently conducting LOST negotiations is an inexcusable waste of taxpayers’ hard earned money, often costing hundreds of thousands, or even millions of dollars, in expert fees, consultants, studies, legal costs and litigation fees; monies which would be better spent repairing, maintaining and even expanding infrastructure and our transportation system,” said Rep. Powell. “It is my hope that the possibility of forever losing the benefit of this tax will help local officials focus on reaching an agreement on distribution of LOST proceeds, but if not, I am sure our local school boards would welcome an opportunity to utilize this new funding source while reducing the property tax burden imposed on taxpayers for the support of our schools.”

Existing law requires that those counties which have enacted a LOST schedule negotiations every ten years to determine how the tax proceeds will be divided among the cities and counties for the ensuing ten year period. According to Rep. Powell, these negotiations often are long-drawn-out, divisive, expensive, and frequently result in costly litigation. To encourage county and city officials to negotiate in good faith and reach a timely resolution of the issues involved in determining future tax negotiations, Powell’s proposal introduces a “nuclear option” in the event counties and cities fail to agree on a distribution formula of the monies generated by the LOST. This nuclear option penalizes those who fail to agree, by terminating the LOST and preventing its reinstitution, or that of a similar tax known as the HOST for a five year period. HOST is the only similar type of tax currently available by statute.

State House approves permanent exemption for boat dealers

Most business inventory in Georgia is subject to personal property taxes collected by counties and cities.  The state revenue code has previously exempted watercraft held in inventory for resale for a limited period of time.  The exemption has usually been authorized for a four-year time period; in other words, the exemption sunset after several years until it was renewed.

House Bill 769 would make the exemption permanent for boats held in inventory for sale or resale.  The bill is somewhat out of the ordinary because legislators have generally preferred putting an expiration date on most tax credits and exemptions over the last couple years.  But HB 769 was approved unanimously by the House last week and is now being considered by the Senate.

The bill would have no effect in Decatur since we have no boat dealers.  Individual boat owners in Decatur remain subject to an annual personal property tax bill from the City of Decatur and DeKalb County.

Senate approves Decatur senior exemption from school tax

The state Senate unanimously approved a referendum for an exemption from school property taxes for Decatur homeowners over the age of 65 last Thursday.  The Senate also approved SB 339, 340, 341, and 342, which would would expand homestead exemptions for Decatur city taxes.  The bills head to the House of Representatives next.  If approved by voters the exemptions would take effect in 2017.

New “township” tax rates would be capped at half a mill

State lawmakers are proposing an additional form of local government in Georgia: towns. Townships would have limited powers and limited tax rates. Specifically, the ad valorem millage rate would be capped at no more than 0.5 mills. Town supervisors (which is what the legislation calls them) would need to keep a pretty sharp eye on their property tax digests under this proposal, particularly if a new town started out at the 0.5 mill maximum. Any significant downturn in property values could not be offset by increasing the millage rate beyond the cap. As far as I can tell, towns would be subject to the same balanced budget requirements that cities, counties, and the state face.

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

State representative files bill to cap property assessments

Property tax assessments in Georgia could be capped to increase by no more than 7.5 percent over any three-year period and no more than 2.5 percent in one year if House Resolution 965 passes during the upcoming legislative session. Rep. Brad Raffensperger’s (R-Johns Creek) bill would create a proposed constitutional amendment to be voted on statewide. An assessment cap has also been supported by Sen. Fran Millar (R-DeKalb) who has been influential in property assessment legislation in the General Assembly. Under HR 965, voters would have to approve a local assessment cap referendum as well in order for the cap to take effect locally. If the property is sold, transferred, or the owner has major work done on the property, there is no cap and the property is assessed on the basis of its fair market value. The proposal resembles California’s Proposition 13 which locked in property values at their value in 1978 while allowing for growth in inflation.

State: tax rates in new cities can’t be capped

Georgia General Assembly legislative counsel Jeff Lanier says that property tax millage rates cannot be capped when new cities such as Brookhaven and Tucker are created. City officials retain the authority to increase tax rates even if a cap was written into the legislation or charter that created them. This news comes from the Atlanta Journal Constitution:

Cities have the power to raise property taxes and expand services, even when their charters attempt to impose limitations, according to legal opinions prepared for Georgia senators.

The opinions, cited in this week’s final report of a Senate task force on cityhood, said the Georgia Constitution gives city councils control over local taxes and service levels. Referendums seeking voter approval aren’t required before city councils take action, the opinions say.

Cities can use their “home rule” authority to remove millage rate caps, according to a legal opinion by Deputy Legislative Counsel Jeff Lanier. Millage caps were included in the legislation that created the cities of Brookhaven, Tucker and others... 

This legal opinion may put cold water on cityhood efforts because supporters can no longer guarantee a maximum tax rate.

Former lawmaker calls for constitutional cap on tax assessments

Former state representative Ed Lindsey recently wrote that, “The General Assembly needs to put a constitutional amendment to limit property tax assessments on the ballot in 2016” in a Peach Pundit blog post. Mr. Lindsey is calling for “limiting annual increases to no more than 3% or the rate of inflation, whichever is less.”

Atlanta Journal Constitution columnist Kyle Wingfield made a similar proposal a couple of weeks ago for a 2.4 percent cap on annual assessment increases.

Homestead relief proposals in hindsight

Decatur wasn’t the only city to watch its proposals to expand homestead exemptions die in the state House of Representatives this past session. A bill to exempt Atlanta homeowners over the age of 70 from school taxes was defeated a couple days before the session ended. Goes to show that tax relief proposals aren’t always the lead-pipe cinch we thought they were.

Here was the AJC’s report on the Atlanta bill:

A bid to exempt Atlanta seniors from school taxes fails again 

The Georgia House rejected a measure Tuesday that would let Atlanta voters decide whether to exempt many seniors from paying Atlanta Public Schools taxes amid opposition from critics who worry it would undercut the system’s budget. State Rep. Beth Beskin, a Buckhead Republican, said House Bill 633 would help convince older and more affluent residents from bolting to neighboring counties like Cobb and DeKalb that already offer more generous tax exemptions. 

“There’s a reason seniors aren’t moving to the city of Atlanta and they’re not staying here,” said Beskin, a freshman lawmaker. “I know many people, and I’m sure you do too, who move to adjoining counties because the tax burden is onerous.” 

Atlanta already has an exemption for seniors ages 65 and older who earn $25,000 or less annually. Beskin’s bill would broaden the exemption to all seniors once they turn 70. The measure was approved by Atlanta’s local delegation but failed earlier this session in the House. Atlanta schools officials worry the bill would undermine the system’s fiscal health at a tumultuous time, and it failed to earn two-thirds support amid scattered bipartisan opposition. 

But not all property tax relief bills died this year. DeKalb County’s equalized HOST and property value freeze extensions passed the House and Senate. The legislature also passed a homestead exemption measure for the City of Rutledge in Morgan County that is awaiting the governor’s signature.

Tax valuation and appeals bill passes state legislature

House Bill 202, which affects property value appeal procedures, passed the Georgia General Assembly on the final day of its session this year.  The House will transmit the bill to the governor's desk next week for his approval or veto before May 12.  HB 202 underwent significant amendments before final passage after a conference committee worked out differences between the House and Senate.  An earlier version of the bill had nine sections; the final version has 28 sections including motor vehicle, motor home, and income tax provisions that were not included in prior versions.  The portions relevant to property taxes are summarized below courtesy of the Georgia Municipal Association:

Section 5 -permits taxpayer to opt-in for electronic notice and billing of taxes at the discretion of the tax commissioner;

Section 6 -further specifies obstruction language regarding levying officers; 

Section 7 -requires levying (counties and cities) and recommending (e.g., school boards) authorities to post a on their website, if available, a report that has been required in the past; report must appear in newspaper of general circulation for one week (as opposed to two); 

Section 8 -permits taxpayers to opt-in for electronic notices and billing of ad valorem taxes; 

Section 9 -extends time for completing digest to September 1 (from August 1); -outlines requirements for penalties for incomplete or improper tax digests; -tax commissioners forfeit portions of commission depending on how long it take for proper submission; 

Section 10 -outlines joint boards of assessors between counties and the process of an intergovernmental agreement for such purposes; 

Section 11 -specifies the use of the Standard on Ratio Studies published by the International Association of Assessing Officers as tax digest in being prepared; 

Section 12 -establishes 10% penalty on assessment of unreturned personal property; -outlines a two year assessment freeze and exceptions; 

Section 13 -changes completion date for revision and assessment of returns from July 1 to July 15, except in counties where taxes collected in installments, where date remains June 1; 

Section 14 -clarifies that hearing officer method of appeal available for non-homestead property with value in excess of $750k (reduced from 1M) and for wireless property with aggregate FMV in excess of $750k (new provision for wireless property); -clarifies that methodology information may be obtained from board of assessors by way of a document request; adds enforcement mechanism for failure to comply with document requests, including assessment of attorneys’ fees;

Section 15 -defines appeal administrator for board of equalization as clerk of superior court, with distinct budget unit for such duties; -establishes 12 month document retention period; -sets standards for board of equalization members; -outlines process for appeals; -board of equalization must decide each case at end of hearing prior to proceeding to next appeal, written decision hand delivered to parties; 

Section 16 -outlines nonbinding arbitration process (replacing binding arbitration process) and process of appeals to superior court, including settlement conference; -establishes uniform superior court filing fee of $25.00; -lowers threshold for mandatory attorneys’ fees on commercial property from 80% to 85% (now the same for all real property) 

Section 17-RESERVED 

Section 18 -specifies that each digest shall be accompanied by all documents, statistics, and certifications relating to parcels under appeal; -removes penalty for deviation from assessment ratio appearing in subparagraph (b) for digests after 1/1/2016...

HB 202 does not directly affect Decatur's procedures for property tax billing, although affects certain assessment calculations and appeals options which can affect property owners county and city bills.

Equalized HOST and value freeze bills sent to Governor

Two bills supported by most state legislators representing DeKalb County were passed by both houses of the Georgia General Assembly and have been sent to Gov. Deal’s desk for his consideration.

House Bill 215 provides for an “equalized” homestead option sales tax (HOST) and an additional 1 percent sales tax in DeKalb County if approved by voters. The proceeds from the new tax would go toward infrastructure improvements in DeKalb County. The existing HOST credit would be modified to provide some more property tax relief. The equalized HOST could save Decatur residents about $20 a year compared to their last DeKalb County tax bill. HB 215 passed the state Senate unanimously, but received 32 nay votes in the House from fiscally conservative Republicans who regarded the measure as a tax increase.

HB 596 provides for an extension of the property assessment freeze in DeKalb County until 2021. The freeze is actually an exemption that offsets increases in property values for homeowners countywide. For Decatur residents, the freeze can help prevent increases in your DeKalb County tax bill but not your City of Decatur tax bill. HB 596 passed by a wider margin than HB 215. There were only four dissenting votes, which were cast by Democrats in the Senate including Sen. Gloria Butler of Stone Mountain and Sen. Steve Henson of Tucker.

Meanwhile, three bills to expand property tax relief for Decatur homeowners died in the state House before the session ended. HB 673 would have increased the existing GH1 basic homestead exemption by exempting $25,000 in assessed value rather than the current $20,000, which would have saved approximately $60 on resident homeowners’ tax bills when compared to current bills assuming no change in property value or in the millage rates. HB 670 would have added a new “GH3” exemption for homeowners over 62 with household income under $50,000 that would have saved them about $175 per year. Section 2A of HB 672 would have would have increased the existing GH2 (age 65) exemption amount of $1,000 to $10,000, which would be a savings of an additional $100 per eligible taxpayer.

Proposal to extend property value freeze advances

The Georgia House of Representatives approved HB 596 yesterday which allows for a referendum to extend the property tax freeze in DeKalb County up through 2021. The bill now heads to the state Senate where Sen. Fran Millar says he’s already been promised support for the measure by fellow DeKalb legislators.

The freeze doesn’t actually prevent property values from increasing, but it offsets increases in property values by exempting the value by which the property has increased. The freeze applies to county property taxes. Homeowners can apply for the freeze when they apply for their DeKalb County homestead exemption. The DeKalb freeze can save taxpayers money even if they live within the city limits of Decatur by potentially reducing their county property tax bill.