Thursday, May 30, 2023–10:38 a.m.
-Adam Carey, Rome News-Tribune-
This story is possible because of a news-sharing agreement with the Rome News-Tribune. More information can be found at northwestgeorgianews.com
A shortfall of $3.4 million in Floyd County’s final budget revision for 2023 has the potential to lead to an increase in taxes for residents.
The largest single deciding factor in the budget gap is a $4.8 million shortfall in property tax collections.
“Our property tax collection rate was 94%, and we projected 95%,” Floyd County Finance Director Suzie Gass said.
A budget revision summary presented to commissioners this week shows several budgeted items that cost more than projected while others brought in less revenue than expected. Court service fees, motor vehicle taxes, legal fees and solid waste fees all came in, to one degree or another, under projections.
“Our sales tax collected was $469,000 less than anticipated,” Gass added.
Some of the information pulled from this final budget revision will be used to inform their 2024 budget projections and the annual discussion on millage rates, which are adjusted every July.
Last year Floyd County commissioners reduced the millage rate from 9.414 mills to the current rate of 8.664 mills, which also accounts for a portion of the overall revenue shortfall. Another factor is the governor’s homestead exemption boost that helped property owners, but contributed to the tax shortfall.
A tax rate of one mill represents one dollar per $1,000 of assessed value. The assessed value of a home is 40% of fair market value, so the taxable percentage of a $200,000 home is $80,000. In an area where the millage rate is 25 mills, the property tax on that home would be $2,000. That calculation comes from 25 mills, essentially $25 for each $1,000 of assessed value.
When a millage rate stays the same or even goes down but the actual taxes a person pays will go up, local governments have to advertise that as a tax increase.
“We’re keeping an eye on our actual current revenue versus projections,” Gass said. “And we’ll present a recommendation to the board in July.”
With the revenue shortfall, barring a reduction in services, the commission may have to consider increasing the millage rate. However, that’s an unpopular option, especially with continuing property tax assessment increases.
Floyd County sent out the most recent property tax assessment in May, with appraisals increasing an average of 8.5%, which will result in additional revenue for the county.
The tax assessor’s office is mandated by law to reflect the market value of real estate, said Floyd County Tax Commissioner Kevin Payne. When prices rise in the real world, the assessment also rises.
The local taxing authorities in Floyd County include the county itself, the Floyd County Board of Education and the city of Rome, which also levies the tax sought by the Rome Board of Education.
Those entities will decide the tax rate, officially known as the millage rate, within the next six to eight weeks.
“These decisions are made in public forums. But I would advise any concerns to be addressed with your elected officials now, before those official meetings occur,” Payne said earlier.
