<p>FOR IMMEDIATE RELEASE</p><p>HOMEOWNERS BENEFIT FROM HR 1 DEFEAT</p><p>Legislation will be reconsidered on Tuesday, February 17</p><p>ATLANTA, Ga. (February 12, 2009) – House Resolution 1 failed to receive the required two- thirds constitutional majority to establish a statewide property tax assessment cap. While some legislators have promoted property tax assessment caps as tax relief for Georgia homeowners, this legislation would actually increase property taxes for homeowners over time. Legislators supportive of HR 1 have asked for the legislation to be reconsidered on the House floor on Tuesday, February 17. </p><p>Property tax assessment caps would not help average homeowners, since most people do not stay in the same home forever. While it would cap the rate of property tax assessment increases for their current home, property taxes for other homes sold in the area would be based on the market value of the home at the time it is sold. This means that over time, caps would cause a shift in the tax burden and result in higher taxes for first time homeowners, people moving into new homes and senior homeowners looking to downsize. They would create widely varying property taxes for people living in the same neighborhood. </p><p>It is possible, and even likely, that someone with a high value home would end up paying less in property taxes than someone who purchases a less expensive home simply because of the difference in time of ownership. </p><p>“We do not believe that today’s vote is the end of this debate, and we think that it is important for homeowners to understand the full impact of this legislation,” said Jerry Griffin, Executive Director of the Association County Commissioners of Georgia (ACCG). “Homeowners will be unhappy at the neighborhood level when they find that home values will vary greatly from one home to the next.”</p><p>Like new homeowners, new companies coming to Georgia would pay more in property taxes compared to existing companies located in the same area. This puts new companies that might relocate to Georgia at a competitive disadvantage and may also be a disincentive for existing companies that want to expand or relocate their operations. </p><p>In addition, because changes in commercial ownership cannot be identified by the tax assessors, residential property will reset in value more rapidly than commercial property and the tax burden will shift over time to homeowners. Since many large commercial properties are also owned by out-of-state or foreign companies, property tax assessment caps would provide more tax relief to non-Georgia based property owners than to homeowners living in the state.</p><p>“It is important that we look at what has happened in other states and learn from the problems that have resulted from establishing property tax assessment caps,” said ACCG Legislative Director Clint Mueller. “South Carolina is trying to repeal similar legislation because it has depressed their real estate market and discouraged companies from locating to the state. Other states such as California and Florida are now facing serious financial issues because of them.”</p><p>In another action today, state representatives voted in favor House Bill 233 which creates a two year moratorium on property tax assessment increases. In the current real estate market with declining home values, this legislation is not likely to result in any savings for homeowners. Furthermore, it will not offset the $200 - $300 increase in homeowners’ 2009 property tax bills that will result if legislators fail to fund the Homeowners Tax Relief Grant (HTRG) credit.</p><p>Property taxes are the primary mechanism for funding local schools and public services Local officials are revising their budgets and reducing their expenditures because of declining revenues, just like the state, even though demand for those services is only increasing given the severe economic situation facing many Georgians. To make matters worse, local governments are forced to continue funding state mandated services whether local taxpayers want to fund them or not. </p><p>“Talking about property tax relief always garners public support, but homeowners will really pay the price for property tax assessment caps in the long run,” said Griffin. </p><p>###</p><p>About ACCG: It is the mission of the Association County Commissioners of Georgia to enhance the role, stature and responsiveness of county government in Georgia. Since counties are the level of government closest to the people and serve all the people of the state, ACCG will promote the ability of Georgia counties to provide public services responsibly, efficiently, and cost effectively through cooperative legislative action, education of public officials, provision of quality member services and technical assistance, and increasing public awareness of critical local government issues. For more information on ACCG, go to www.accg.org.</p>