Dougherty Commission considers tax increase

ALBANY – Dougherty County taxpayers can expect their bills to arrive late this year, and the worse news is that those bills could show an increase over 2024.

Faced with the impact of legislation passed by the state legislature this year, the county is looking at a steep reduction in tax collections.

Both the city of Albany and Dougherty County opted into a floating tax exemption that was the focus of House Bill 581.

The legislation limits the amount of homestead tax-exempt homes to the rate of inflation rather than allowing for increases to be tied to property’s fair market value.

For the current tax year, that means the county will take a hit of about $951,000, Dougherty  County Tax Director Shonna Josey told Dougherty County commissioners on Monday. That would represent tax collections of about 1.4% less than the previous year.

The bottom line is that for the 2025 tax year, the numbers add up to a $146 increase for homeowners with homestead exemption and $152 for those whose homes are not designated as homestead-exempt.

“The key question for us is whether we can sustain that 1.45% decrease until next year,” Commissioner Gloria Gaines said. “On the face of it, it does not appear that we can do that. It looks like we are forced into a tax increase … that we have no choice for this matter.

“That is a huge question for us, whether there is a rollback or whether there is a tax increase.”

Albany is facing a similar dilemma, but the Albany City Commission is leaning toward rolling back its tax millage rate.

The county is performing a countywide tax revaluation, which is expected to increase the overall tax base. That process should help stabilize the county’s finances.

In addition, the city and county are looking to work toward initiating another feature of the state legislation allowing for establishing a sales tax to offset the loss in revenue due to the floating tax exemption. 

Whichever direction the commission takes this year, the bills will roll out later than usual.

Updating software to comply with the requirements of House Bill 581 delayed the process this year, Josey said.

If the commission declines to roll back the millage rate or initiates a tax increase outright, it will be required to hold three public hearings on the issue. After that the advertising requirements will add more time.

The best-case scenario could see notices sent around Dec. 18, but it could be later.

“I think a lot of homeowners are looking for a bill,” Commissioner Clinton Johnson said. “They want to know when they can pay it. They want to know the timeline to pay on time.”

Taxpayers will have 60 days after the mailing of tax notices to pay their bills, Josey said.

“My phone’s been ringing off the hook because they didn’t receive them on Nov. 20,” Commissioner Ed Newsome said. “I think it’s wise we explain it as best we can, because it’s a convoluted year.”

Gaines said she also is hearing from constituents. Some are concerned that if they cannot make the payment in 2025 they will not be able to deduct the local taxes paid on their 2024 federal income tax returns, she said.

“That’s why they’re calling,” she said. “(They’re wondering) ‘Am I going to be able to deduct this in 2025?’ This is very critical in that it could affect their federal tax returns.