User2353_2_t Sally Hardman
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The State of GA legislators are about to reconvene in January and a plan to debate the elimination of property tax is being considered called GREAT (GA Repeal of Every Ad Valorem Tax).  In its stead would be replacement funds from a statewide sales tax.  Advocates of this plan believe that the elimination of property tax would make for a boom in investors and homebuyers looking afresh at the purchase of property in GA.

The school system is resolutely opposed to this plan as it would put the allocation of funds needed for our schools out of the hands of the local school boards and instead up to the discretion of politicians in Atlanta.  I strongly oppose this "creative financing" due to our close proximity to SC and FL, and our revenue from tourism.  An additional sales tax would put us at a GREAT disadvantage with the tourist who could go to FL or SC who don't have this additional tax!

My take on this whole matter is that the county, state and federal governments are going to get the necessary amount of taxes required to do business.  Cut out one source of revenue and another will be raised to fill the gap.  Call it apples or oranges; it's still a fruit salad!

 
This post has been included in Georgia Information

4 Comments on Eliminate Property Taxes – A good move or foolish?

Sally - Florida also may be going that way.  It was first introduced earlier this year - but did not go far in Tallahassee.  They are proposing an alternative resolution to our state property tax, to include the portability issue that many people want. However, the burden of the infrastructure of the state lays on the backs of the homeowners. If the property taxes were done away with, and a sales tax increase was to be, then all the people using the infrastructure would be contributing whenever they buy merchandise in Florida. I feel this is a better solution, since people tend to spend when happy and vacationing and it does not matter from where they come. If the proposed change is defeated I believe the sales tax issue may rise again.  I hope so.

12/18/2007 12:36 PM by Richard C. Decker,P.A.-Realtor Broward County FL (RE/MAX Partners)


        

  Here's might be a compromise solution:

             Bifercate the tax collections between cities/counties ,and the schools. Let the cities/counties collect real estate taxes for themselves; but go back to the established old way of years ago of leaving the taxes to be assessed at the original purchase price on each property for as long as the purchaser owns it; to go up in valuation only if the property is improved or resold.This will allow cities and counties to control their collections, as they claim they need to do. This will reduce the need for the expensive assessment and equalization system now needed.And if they need more, they can raise their milledges, and meet their constituants at the polls, when the next election comes up. 

             Then levy an additional 2% sales tax for the schools, to be collected (just) by the parties that now collect sales tax (and therefore not collected on, or from, services performed).  If this does not bring in enough funds, then consider other more modest things things, for instance, such as possibly returning to the idea of Para-Mutual betting, to extract aditional monies for the difference needed to operate the schools. Devide the monies among the school districts, based on the number of students in each school system. And allow students to attend any school having room for them, regardless of the location of the school system, providing however that school buses do not run across established school district lines.          All of this latter idea should create some academic competion between the local school systems, which might be a good thing. 

 

12/24/2007 09:24 PM by a. a.


Florida's number one industry is growth. If GA passes this I can guarantee there will be migration from Florida to Georgia. Florida needs to wake up and soon.

12/24/2007 09:36 PM by Simon Conway (Picket Fence Realty)


Interesting.... It'll be watching to see how this one plays out. Here in Southwest Missouri, a great many complain about their property taxes. However, they would never dream of selling their property at the assessed value - when we pull the tax records, we usually double the assessed value provided to arrive at a more realistic value. . . In addition to property taxes, we have PERSONAL PROPERTY TAXES... now, that I'd like to see go away. We must claim anything of value, including autos, livestock (we had two goats we had to claim), computers, jewelery, etc. So, we pay sales tax when purchased and PPT each year we own the item.

12/24/2007 09:40 PM by Debbie DiFonzo, Broker, United Country VIP Realty


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Real Estate Brokerage: Beachcomber Properties
Sally Hardman
Saint Simons Island, GA
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Beachcomber Properties

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