Legislation Introduced to Eliminate State Portion of Property Tax

Department of Revenue to issue accompanying rule on reassessments

ATLANTA – Governor Sonny Perdue announced today the filing of legislation in the General Assembly to amend the Georgia Constitution to eliminate the state portion of property taxes.  If the legislation passes, Georgians will have the opportunity to vote on a referendum to eliminate the state portion of ad valorem taxes collected on homes, land, automobiles and personal property.             

“This constitutional amendment will give Georgia property owners an annual break on their ever-increasing property tax bills,” said Governor Sonny Perdue.   “Our administration, along with the General Assembly, has provided more than $2.8 billion in tax relief since 2003, and that number will only continue to rise in the coming years.”

Currently, local governments and authorities assess most properties and set their own millage rates to collect revenues.   The state tacks on a quarter millage point to the local ad valorem taxes on property such as homes, land, automobiles and personal property.  This legislation would eliminate the state portion of the property tax collections.   Because property values continue to rise, the state collections on that quarter mill have risen as well.   In the first year of implementation, Georgia taxpayers will save an estimated $94 million in state property taxes, a number that would continue to grow if not eliminated.

Governor Perdue also announced today that Bart Graham, Commissioner of the Department of Revenue, has released for public comments an amended rule change to clarify that the state has no role in mandating reassessments of properties.    The outcome of the vote on the constitutional referendum will not impact the rule. 

“Local governments will no longer be able to blame the state for requiring reassessments on any certain timetable,” Governor Perdue added.   “Local governments have always had and continue to have the responsibility for determining fair-market value of property, when to reassess, and be accountable to the voters for those decisions.”

This legislation will be carried by Representative Jim Cole, one of Governor Perdue’s floor leaders in the House.

“I am proud to introduce Governor Perdue’s proposal to provide property tax relief for our citizens,” said Cole. “Most Georgians don’t even realize that a portion of their property tax payment comes to the state.   While we have gotten used to seeing more and more tacked on to those bills, I am excited to offer an idea that will reduce this burden felt by property owners around the state.”

If the legislation is passed by the General Assembly, it will go to the voters on the November 2008 statewide ballot as a referendum as follows:

Shall the Constitution of Georgia be amended so as to eliminate the state´s power to annually levy an ad valorem tax on tangible property for any purpose except for defending the state in an emergency but to provide for the state´s continued administrative role in the levy of ad valorem taxes by local governments?"

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