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Published Wednesday, July 23, 2008 in Local

Newnan will not roll back tax rate

By Elizabeth Richardson

The Times-Herald

The Newnan City Council intends to keep the current ad valorem tax rate -- 4.32 mills -- the same for the 2008 tax year despite a suggested rollback millage rate of 4.27 mills.

Council passed a motion Tuesday evening to maintain the millage rate. Now the city will have to hold three public hearings during the next three weeks concerning its intention to remain at 4.32 mills.

Citizens are invited to the public hearings at Newnan City Hall, 25 LaGrange St., Aug. 4 at 11:45 a.m. and 6:15 p.m., and Aug. 12 at 2:15 p.m.

The suggested rollback rate was dictated by the latest assessments from the tax commissioner.

The 4.32 mill rate would be applied to property taxes levied by the city in the beginning of fall 2008 and would fund city operations during the 2008 tax year, if the rate is adopted by the council in early August. According to Newnan Public Information Officer Gina Snider, by leaving the property tax at the same millage rate, the city would increase property tax revenues collections this year by 1.16 percent over the proposed rollback millage rate.

Following the council meeting, Councilman Clayton Hicks explained a 4.27 millage rate would have slightly decreased property taxes and, therefore, revenue for the city.

"In anticipation of the economy not being better, we decided instead of rolling back the tax rate to leave it the same," said Hicks. According to Hicks, the decrease in taxes would have been virtually insignificant.

At the meeting, it was Mayor Keith Brady who broached the subject with council and staff.

"There has been some discussion among council members for us not to do the rollback this year considering the amount of assessments," said Brady, who suggested that council make a motion to maintain the current ad valorem tax rate.

Since council unanimously passed the motion, it must now hold the three public hearings to allow the public to express opinions on the increase in revenue. While those residents whose property was reassessed by the tax assessor would receive a small tax increase, those residents whose property were not assessed will not see an increase. The reassessed properties will show an increase of only 1.16 percent.

When the total digest of taxable property is prepared, Georgia Law requires that a rollback millage rate must be computed that will produce the same total revenue on the current year's new digest that last year's millage rate would have produced had no reassessments occurred.