The average property owner will pay more under the Houston school’s millage proposal. That’s because property values have increased.
HOUSTON COUNTY, Ga. — The Houston County Board of Education is proposing a nearly 12% property-tax hike, according to a news release from the school district.
While they plan to keep the millage rate the same as last year’s — 11.719 — most property values have increased, and that means the average taxpayer will pay more.
“We did not want to increase it at all,” said Michelle Morris, Houston County School District’s chief financial officer. “And so, we made our expenditures make sure we fit into the 11.719 mils.”
As agencies set their property tax rates, they first must determine the rollback rate. That’s the millage rate that would generate the same amount of property tax revenue as the previous year.
“The amount of the rollback would have been 1.226 which according to that calculation looks like a 11.68% increase,” Morris said.
The budget tentatively adopted by the Houston school board requires a property tax rate that is 1.226 mills higher than the rollback rate. Each mill means $1 in property taxes per $1,000 of a property’s assessed value.
In total, that’s an 11.68% property tax hike, the district said. For a $100,000 home, that would equal roughly an additional $49 in property taxes over the rollback rate.
The district says property values in Houston County are rising. And when people’s property values increase, and a board chooses not to adopt the rollback rate, property owners will likely pay more in taxes.
Morris says Houston County has one of the lowest rates in the state.
“Houston County School District is the 12th largest school district in the state of Georgia, and our millage from last year, ranked 165th out of 180 school districts,” Morris said.
Morris says the decision to keep the millage rate the same allows the district to take care of its students and staff.
“All of our staff is getting a 1% cost of living adjustment increase and then in December they’ll get a $1000 supplement if they are a full-time employee with the school district,” said Morris.
Georgia law requires the Houston County School District to hold three public hearings, offering the public the chance to share their opinions on the property tax increase.
- Aug. 11 at 6 p.m.
- Aug. 12 at 1 p.m.
- Aug. 25 at 3 p.m.
Those meetings will be held at the Board of Education building at 1100 Main Street in Perry.
How are property taxes calculated in Georgia?
Under Georgia law, property owners only pay taxes on 40% of their home’s value. For a $100,000 home, that’s an assessed value of $40,000 that property owners pay property taxes on.
One mill is $1 in property taxes per $1,000 of a property’s assessed value. If the millage rate is 1 mill, then that would be $40 in property taxes.
If the millage rate is 11.719, as is the case in Houston County, that is $468.76 in property taxes for a home worth $100,000.
There is a homestead exemption for people living and residing on their property, which can reduce their property tax burden.
Why are property taxes increasing if the millage rate stays the same?
Houston County is keeping its property tax millage rate at 11.719, but property values in the county have increased.
When the millage rate stays the same but property values go up, homeowners end up paying more in property taxes than the year before. This happens because taxes are based on how much your property is worth, so higher values mean higher taxes.
When property values go up, agencies are required to calculate a “rollback” millage rate. This is the tax rate that would bring in the same amount of money as the year before, even with the higher values. For this year, the rollback rate for the Houston County Board of Education was 10.493.
Because the millage rate proposed at 11.719 is higher than the rollback rate, the board of education will receive more money, meaning the average property owner will likely pay more. That’s why Georgia law requires it to be considered a property tax increase.
Who sets millage rates? It depends
Boards of Education are among the government agencies that can set millage rates, but both cities and counties can also levy property taxes. Boards of Education are composed of board members who are elected.
The Houston County Board of Commissioners also assesses property taxes on top of the Board of Education’s rate.
