Gilmer County commissioners and school board officials have a decision to make before March 1, 2025, about Georgia’s newly passed Constitutional Amendment 1.
“That’s going to cost the county a lot of money,” said Gilmer County Chair Charlie Paris. “I think that was a well-intentioned mistake by the General Assembly.”
Voters in Gilmer County and statewide voted in favor of the amendment which would slow property tax hikes from increasing home values. It would cap home value assessments rising by more than the inflation rate for the previous year.
Government organizations can opt out before March 1, by passing a resolution and holding three public hearings.
If the county chooses to allow the cap, it is eligible to add a one cent sales tax to offset the lost revenue. The measure must be voted in by referendum.
Paris points out the county just voted down a one cent sales tax to improve roads and bridges in the county. He is not sure a one cent sales tax would pass in this case either.
“The people of Gilmer County don’t want a tax increase of any kind,” he said.
The measure reminds him of when the state took away the county’s portion of the gas tax and allowed county’s to raise taxes to offset the loss.
Paris said the state already monitors property valuations, and in fact will impose penalties if the county does not raise assessments enough on homes and property.
Gilmer County Schools have a tougher decision, said Superintendent Dr. Brian Ridley.
“I have some concerns about the bill,” he said. “There is some concern throughout the state as to how it is going to work.”
The school systems in the state have no recourse to the lost revenue because the systems do not have the option of implementing a sales tax to offset lost revenue.
Over the last four years, the measure would have cost Gilmer County Schools an estimated $3.7 million.
In addition to the revenue loss, close to 31 percent of homes in Gilmer County already don’t pay school taxes due to the elderly tax exemption.
During the last two years, Gilmer County Schools have budgeted at a deficit and spent down the reserve fund in the interest of being good stewards, Dr. Ridley said.
“The people have elected five very competent school board members to look after their interests,” he said. “We run a pretty lean ship here.”
For construction, the system relies mainly on the ESPLOST (Education Special Purpose Local Option Sales Tax). A majority of the local school budget, almost 90 percent, is strictly used for salaries, Ridley said.
Amendment 1 would be a significant hit to the school system budget, he said.
“We are going to assess the bills impact going forward,” Ridley said. “We have to make the best decision for our students and our taxpayers.”