Limit proposed on home value hikes
Polk County state senator one of the co-sponsors on
A bill that would cap increases in homestead property valuations at 3% statewide got its first hearing last week in the Georgia Senate Finance Committee.
“We’ve probably all heard more about property taxes than any other issue in the last year,” said Sen. Chuck Hufstetler, R-Rome, in presenting his Senate Bill 349 to the committee he chairs on Jan. 22. Many members, including Sen. Jason Anavitarte, R-Dallas, are co-sponsors.
The legislation contains a number of other provisions aimed at addressing procedures including transparency and appeals. However, it’s the proposed cap that sparked the most debate — although not necessarily from committee members.
“This is a great bill. There’s definitely a need. People around the state have felt a lot of pain lately,” said Sen. John Albers,
R-Roswell, the committee vice chair who held the gavel while Hufstetler explained his intentions and answered questions.
“We are forcing people out of their homes,” agreed Sen. Brandon Beach, R-Alpharetta.
Dante Handel, governmental affairs associate for the Association County Commissioners of Georgia, was among those weighing in during the public comment period.
“We support the package in SB 349,” he said. “I think it will make a lot of positive changes.”
But some of the other commenters expressed concern.
Justin Pauly, director of communications for the Georgia School Boards Association, said a limit on valuations would affect revenue for school systems, which have a cap on the millage rate they are allowed to levy. And Suzanne Widenhouse, chief appraiser of Columbus-Muscogee County, urged caution. The county has had a freeze in place since 1983.
“I can talk about what that does over time... It’s shifted our tax burden to a newcomer’s tax, to businesses, new businesses, new homesteaders,” Widenhouse said. She gave an example of two homes near each other, both worth about $300,000. The one that locked in their valuation decades ago pays $7.19 in tax; the one that was revalued when it changed hands pays over $3,000.
The government still needs revenue to provide services, she noted, and the wide disparity in taxes has affected development. Efforts to eliminate the freeze have met with resounding “no” votes by residents.
Several senators on the committee indicated they weren’t swayed by that concern. Sen. Greg Dolezal, R-Cumming, said Forsyth County has had a freeze for about 20 years and is one of the fastest growing counties in the state.
There was some early discussion about fine-tuning the provisions. Dolezal said he wants to keep the state law that locks in a valuation for three years when a property owner wins an appeal. Sens. Nan Orrock and Jason Esteves, both Atlanta Democrats, want to tighten up oversight on commercial properties that Orrock said are “grossly undervalued” in her county.
Hufstetler said the presentation Monday was to get the discussion started. He expects the bill to change somewhat as support and opposition materialize during its move through the system.
“We’ll be working on a reasonable compromise that will do what it needs to do and be sure it will pass,” he said. “My intent on this bill is to protect people who want to stay in their home — retirees, people on fixed incomes — and not be subject to massive tax increases.”