The Correct Tax Rate: Honesty in Taxation
In 2009, Gwinnett taxpayers suffered their first tax increase in many years. The late-year hike of over 20% hit Gwinnett residents especially hard. The assessment was collected in a special March 2010 billing, only to be followed by the regular 2010 assessment which not only included the higher tax rate but also 18 months of sanitation service… 12 months paid in advance.
Most taxpayers do not know that, since at least 2005, the County Commission has adopted deficit tax rates… in other words, the millage rate was artificially lower than was needed to fully fund the budget. This necessitated draws on reserves in most years, a practice that caused the county to be unable to adequately respond to the economic downturn. As a result, a tax increase was the only way to refill the county’s reserves.
There is a right and a wrong way to set the millage rate. By following the procedure for calculating the millage rate that is recommended by the state Department of Revenue, the Commission can ensure that future tax rates take no more and no less from Gwinnett property owners than is required to fund the budget.
There are numerous benefits to following the right procedure. For example, a mathematical millage rate forces politicians to concentrate on reducing costs and identifying non-property tax revenue sources.
