patching...
Welcome back, Patch Blogger!

Millage Cap, Homestead Exemption, and Property Tax Cut

Rep. Mike Jacobs discusses millage rate for the proposed City of Brookhaven.

 

The millage cap for the proposed City of Brookhaven will be set at 3.4 mills in HB 636, the Brookhaven city charter, as it moves forward in the 2012 session of the General Assembly.  In addition, the homestead exemption for city property taxes will be increased from $10,000 to $20,000.

 The millage cap is a mechanism that prevents city property taxes from going higher than a certain rate without approval by the citizens in a public referendum.  It is a benefit that does not exist in unincorporated DeKalb County.

 This guarantees virtually all homeowners a property tax cut, even if the city council sets the millage rate at the full 3.4 mills.

 However, the need for the Brookhaven city council to use the full 3.4 mills is doubtful.  Property taxes are likely to be lower than 3.4 mills.  The Carl Vinson Institute of Government estimated that city expenditures would be $25.1 million.  The City of Dunwoody, a similarly situated city in terms of population and geography, anticipates 2012 expenditures of $20.9 million.  The new millage cap will reduce the Carl Vinson Institute’s estimated surplus for Brookhaven from $3.4 million to approximately $362,878.  Based upon Dunwoody’s actual expenditures, this estimated surplus is in excess of an already generous expenditure estimate.

With a $20,000 homestead exemption, the City of Brookhaven would need to charge 3.22 mills to generate revenues equal to its estimated expenditures of $25.1 million.

The 3.4 millage cap would lower Brookhaven’s property taxes to a rate lower than the 3.5 millage rate that existed prior to DeKalb County’s 2011 tax increase to 6.39 mills.

I look forward to working with citizens to bring Brookhaven a more responsive local government that guarantees lower property taxes and lives within its means.

 

Rep. Mike Jacobs represents the 80th District in the House of Representatives.

About this column: A place where Brookhaven and Chamblee residents can have their say on any issue. Related Topics: Brookhaven Incorporation and City of Brookhaven

Rick

7:39 am on Monday, January 9, 2012

So we will have more government and lower taxes? Are you personally willing to indemnify each and every tax payer in the city of Brookhaven if our taxes happen to rise?

I only hope the proposed residents of Brookhaven can see the reality of the situation and block any attempt to create a city without a one or two year investigation to see the true costs of cityhood. This should include thorough analysis of Sandy Springs and Dunwoody.

Reply

Joe

8:49 am on Monday, January 9, 2012

+1 on Rick's comment. Which of us woke up one morning and said to ourselves "Wow, I wish I had another layer of government to deal with and intrude into my life." jacobs would NEVER indemnify anyone for anything. It is the old political "Trust me, I am from the government and I am here to help". Instead of Jacobs' spinning the numbers, I would rather he describe, in plain English, WHY this is a good idea. I understand the downside...more taxes, more bureacracy, more hoops to jump through, more bureaucrats who feel that they aren't doing their jobs without writing more regulations and laws. But, Mike, how about your version of the Top Ten reasons this is good for me and my neighbors? Holding my breath......

Reply

GuruLikeDrucker

8:09 pm on Monday, January 9, 2012

DeKalb County should have become familiar with the term disenfranchised years ago; it is a term that those of us in unincorporated DeKalb have been using for years, as we watched the greater share of our tax dollars leave our local communities to build parks, sidewalks and infrastructure in the central and southern parts of our county. Mr. Ellis believes that “…It is a fundamental right for our citizens to choose more government and pay a premium for heightened levels of service..." and that statement gets right to the point. Historically, south and central DeKalb received the heightened levels of service, while unincorporated DeKalb paid the premium. Our Parks are in disarray, our sidewalks overgrown, and our police force absent. We in unincorporated DeKalb are confident that we can provide these services at no additional cost. Even if it does cost more for the privilege of having a local government that we can hold accountable, we are willing to take our chances with the higher potential cost.

Reply
Comment_arrow

Jim Eyre

10:46 pm on Monday, January 9, 2012

We forget we must correct the problems with DeKalb before we can be comfortable we will not be in the exact same place 5, 10, 15 years from now - trying to figure out how to escape the potential for a huge tax increase. We need only look to Fulton County where we see nearly the entire county carved up into incorporated cities leaving a small portion of unincorporated Fulton trying to support an unsustainable beast of a county government. And the solution for those that ran off to the cities of north Fulton...leave it all behind and run away to a new Milton County. Flash forward ten years when the Cities of Brookhaven, Tucker, Northlake, Emory Village and Stonecrest have carved up DeKalb County leaving only a small portion of unincorporated DeKalb trying to support an unsustainable beast of a county government...Where do we run then? we have no Milton County to run to so the only solution is that we are held captive while the 90% of your tax bill that is, and will be, controlled by DeKalb County and DeKalb Schools begins a dramatic rise to stratospheric rates. We can not just sweep the problems of DeKalb County into a closet at Brookhaven City Hall. We MUST defeat the beast of unsustainable government before we can move on with any certainty that we will not be right back where we are now...trying to decide how we escape a new invigorated beast of unsustainable government looking for more and more tax dollars.

Jim Eyre

10:33 pm on Monday, January 9, 2012

With regard to the tax rate, my property tax bill for 2010 shows I paid an actual tax rate of 1.72 mils when I factor in the HOST tax credit available for residents in unincorporated DeKalb NOT the 3.5 mils rate noted in Rep Jacobs letter. My property tax bill for 2011 shows I paid an actual tax rate of 3.23 mils when I factor in the HOST tax credit for residents in unincorporated DeKalb NOT the 6.39 mils rate noted in Rep Jacobs letter. This is NOT a tax reduction, it is Rep Jacobs giving you the tax rate you are currently paying in unincorporated DeKalb and calling it lower taxes to sell the city.

Page 19 of the feasibility study prepared by the Carl Vinson Institute for the proposed City of Brookhaven includes the statement "Deficit based on Revenue Estimates Using 2010 Property Taxes (3.50 mils): -$1,272,623". How can the feasibility study prepared for Rep Jacobs and the Committee include a $1.2m deficit using a property tax rate of 3.50 mils rate yet Rep Jacobs letter above states a property tax millage rate of 3.4 mils will produce a surplus of "approximately" $362,878. I was never a math wiz but I fail to see how collecting less property tax will produce over $1.5 million in additional revenue for the proposed City of Brookhaven. Rep Jacobs please explain the wide discrepancies between your numbers and the feasibility study produced by the Carl Vinson Institute that "has a track record of reliable, conservative predictions for the studies it has performed".

Reply

Mike Jacobs

11:15 pm on Monday, January 9, 2012

Jim, you are missing something, namely that the HOST credit is already deducted from the property tax figures shown in the Carl Vinson report. The study uses actual property tax amounts without adjustment.

In other words, you are deducting the HOST credit a second time.

I am very confident that a tax rate of 3.4 mills and a $20,000 homestead exemption generates a property tax cut for homeowners in the proposed city, as compared to what DeKalb County is currently charging for city services less the HOST credit.

For your benefit, this is from pages 15-16 of the study:

"The figures given here represent the amount of real property taxes being paid by study area residents to the county for the services being provided through county special service tax districts. . . . In other words, the method utilized here demonstrates the amount of property tax revenue being generated in the study area for the county that would become available to a municipality that took over the provision of those municipal services currently being provided by the county if the amount of property tax collections remained constant but was instead collected by a city. . . . The 2011 figure is based on 2011 taxable assessed value figures, identification of homestead exemptions, value of the homestead exemption and millage rates provided by the Tax Commissioner, as well as the application of the HOST tax credit. . . . The HOST tax credit was calculated based on a HOST factor of 47.3%."

Reply
Comment_arrow

Joe

11:32 pm on Monday, January 9, 2012

Mr. Jacobs, you forgot to share your top ten reasons why this is a good thing for my neighbors and I. All this BS with spinning dueling numbers is getting very tedious. Step back, people, look at the big picture. Think of the last time you got a driver's license, or stopped by the disaster of a Tax Office on Dresden. THAT is government, and THAT's what Jacobs wants us to have more of. No thanks, and I'll work hard as I can to ensure that Jacobs gets retired.

Comment_arrow

Jim Eyre

9:24 am on Tuesday, January 10, 2012

Thanks Mike for confirming two points of my comments. 1.) the actual tax rate paid by DeKalb residents is NOT 6.39 mils but is 47.3% lower or 3.36 mils. 2.) your proposed tax rate cap is NOT a reduced tax rate but is in fact an equalized tax rate to provide homeowners in the proposed City of Brookhaven the HOST tax credit they currently enjoy in DeKalb County.

With regard to the proposed budget, you fail to take into account the proposed 3.22 mils tax rate must be applied uniformly across the entire property tax digest, including commercial properties...good news for commercial property owners...bad news for your feasibility study's tax revenue projections as the reduction in commercial property tax revenue could shrink proposed tax revenues by $2 million or more. In addition, I see in your feasibility study that HOST taxes are paid from previous year taxes so the proposed City of Brookhaven would not receive the projected $5 million in HOST funds in year one of operations. Thus, from day one of the proposed City of Brookhaven, projected revenues would be $7 million or more below those shown in your feasibility study.

The real question becomes, when are you going to provide the residents an opportunity to debate vigorously the type and level of services to be offered by a proposed City of Brookhaven with whatever $$'s are collected? After a city vote is NOT the time for citizens to decide what the true vision will be for the proposed City of Brookhaven!

Mike Jacobs

12:06 am on Tuesday, January 10, 2012

Joe, I'd be happy to take you on a tour of Dunwoody City Hall to show you that it is different from the "government" you've described.

I'd also encourage citizens to talk with folks who live in Dunwoody about their new city. Generally it gets high marks.

This is an opportunity to keep some of our tax dollars here at home, to deploy them more efficiently, and to locally control the development of our community.

The numbers aren't being spun. They are actual numbers.

Reply

Enuff Govt Already

9:04 am on Tuesday, January 10, 2012

I think the numbers are being spun.
Fines at $1.9 million. Determined by a ratio of population. Seems very vague. Dunwoody with a much higher daytime population, larger traffic count and Perimeter Mall reported $1.1 million in fines collected. CVI said , " an assumption was made that rates of petty offenses of this nature take place on a fairly consistent level across unincorporated .." Brookhaven has no mall, a significantly smaller traffic count and a smaller daytime population. Add the county officers who are almost exclusively dedicated to traffic enforcement and the formula used gets even more distorted. The revenue in this area looks grossly over stated.
Law Enforcement-Confiscated Money estimated at $241K. Again very vague in how that revenue would be generated by a City of Brookhaven. The county dedicates numerous detectives in several different assignments. I don't think a limited manpower Brookhaven police could duplicate anything close to a quarter million in revenue. An assumption that money seizures are uniform throughout the county is an incorrect assumption. Dunwoody reported only 7K in confiscated money.
These two small areas of the proposed revenue should raise red flags. Before a government is created a thorough feasibility study NOT based on assumptions should be undertaken.
If a government is created and the revenue isn't there will that government fold or will it just forcefully take more?

Reply

Mike Jacobs

12:03 pm on Tuesday, January 10, 2012

Jim @ 9:24 a.m., that is incorrect because your methodology does not account for the effect of the homestead exemption on the assessed value. If the methodology is to equalize everything else (which is flawed to begin with) and make the only variable the millage rate, then the resulting millage rate is higher than 3.36 mills, and 3.40 mills for that matter, whereas the Brookhaven millage rate is proposed to be 3.40 mills at most.

I am very confident that a tax rate of 3.40 mills and a $20,000 homestead exemption generates a property tax cut for homeowners in the proposed city, as compared to what DeKalb County is currently charging for municipal services less the HOST credit. This is based upon actual dollars paid, not just the millage rate.

Reply

Jim Eyre

9:09 am on Wednesday, January 11, 2012

Thank you Mike for the correction. I see now that when I factor in the actual taxes I paid with respect to the items noted above, my numbers are off by 0.08 mils....sorry to present inaccurate information.

Now, how do we address the larger issue presented in my comments - what are the citizens of the proposed City of Brookhaven actually receiving for whatever level of taxes they will pay?

You point often to the shining city on the hill that is now Dunwoody..we heard from Rep Tom Taylor and the other proponents for Dunwoody that they worked for two years meeting with residents at every neighborhood swim/tennis group; every school group; every church group; every coffee shop group; every every group; to discuss and determine the level and type of services they would like to see BEFORE the proposed charter for the City of Dunwoody was finalized and presented to the GA Legislature for approval.

Why are the citizens of the proposed City of Brookhaven not being allowed the same opportunity to develop the level and type of services they feel most important before you bring the tablets containing the city charter down the steps of the state capital and present them to the citizens for a vote? The process MUST be slowed to allow people the opportunity to discuss, digest the information and discuss further what their vision is and will be for the proposed City of Brookhaven!

Reply
Comment_arrow

Stan

11:09 am on Wednesday, January 11, 2012

BrookhavenYES was incorporated yesterday, we have a neighborhood association meeting tomorrow, and our first public organizing meeting is this coming Tuesday. Seems to me the citizens of the proposed City of Brookhaven are getting an opportunity to help "develop the level and types of service they feel most important."
It's meeting like these where our vision for Brookhaven will develop.

Phillip McKrevis

12:08 am on Monday, April 16, 2012

LiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarliarLiarliarliarliarliarliarliarliarliarliarlia

Reply

Leave a comment