ATL Home prices up 15.7%. Will Property taxes rise the same?

[The Sound Guy]

 

Home prices across metro Atlanta continued their robust, post-recessionary rise during the first quarter of the year, according to the S&P Case-Shiller Home Price Index released Tuesday. The 15.7 percent increase, compared to a similar period a year earlier, kept Atlanta ahead of the 12.4 percent uptick in home prices .

 

The above from the AJC.

 

Now the BOC for the most part cut the county budget (and the School Board completely cut the budget) to make up for the falling property values in the last 6 years rather than raise the rate to keep funding at the same levels. We've enjoyed lower taxes (for the most part) during that time.

 

However, new assessments should be out in June as I recall. I suspect we'll see that 15% increase on that assessment. As I see it, that means for us homeowners, two things can happen, both of which cost us money:

 

1) The county allows the rate to say the same, jumping the total taxes the same 15% or so. I'm not sure how the law reads on this, since we had a tax cut when the values dropped and the rate stayed the same, are they allowed to let it float back up to the income of 2008 without hearings? Anybody know?

 

2) Even if both bodies cut the tax rate to keep the total budget the same, I suspect that we homeowners are going to own a larger percentage of the property value in the county than before. (I don't think commercial property is going up at 15% a year in value). If so, then our percentage of the taxes paid in the county will increase even with the budget the same. The increase won't be 15%, but it will be an increase.

 

Either way, be ready for property tax sticker shock in the fall. I think we're about to make up for the tax savings we've seen in the last few years.

 

Since two of the five commissioners are now lame duck, it will be interesting to see how the BOC approaches the new budget for 2015. They may find it much easier to raise them this year with only one facing an election in November.

 

THIS was why you never heard me whining about home pricing recovering.

 

 

[mei lan]

I never got a property tax break. I just got a lower increase.