Dougherty tax increase possible because of budget shortfall

ALBANY — With a significant property tax increase as recent as 2015, Dougherty County officials, faced with revenue shortages and a more-than-million-dollar budget deficit, confirmed at Monday’s commission meeting that another millage rate increase is being considered.

“We have some consultants coming in Monday to give us some options rather than going into our reserves,” interim County Administrator Michael McCoy said.

Commission Finance Committee Chairman Lamar Hudgins echoed those sentiments after the group convened saying, “We had a meeting with a consultant last week, and he made some recommendations. He suggested we look at raising our millage rate by 2 mils.”

A “2 mil” increase for Dougherty County residents could mean as much as $80 more per year in taxes for a home valued at $100,000.

According to the Georgia Department of Revenue, because millage rates vary, the exact property tax levied depends on the county in which the property is located. Taxes in Dougherty County are already significantly higher than the median property tax in Georgia, ranking among some of the highest in the state.

Fulton County collects the highest property tax in Georgia, levying an average of $2,733 yearly in property taxes, while Warren County has the lowest property tax in the state, collecting an average tax of $314 per year.

According to the Dougherty County Tax Assessor’s office, “Property tax is an ad valorem tax based upon the value of property, both real and personal. Real property is defined as land and generally anything that is erected, growing or affixed to the land. Personal property is boats, airplanes, business inventory, and any equipment, furniture and fixtures needed to run a business.”

“Taxes are calculated by multiplying the assessed value of a property, which is 40 percent of the fair market value of the property, by the millage rate,” Dougherty County Tax Director Shonna Josey explained. “Fair market value means the amount a knowledgeable buyer would pay for the property and a willing seller would accept for the property at an arm’s length, bona fide sale.”

The average property tax in Georgia is $1,346 per year for a home worth the median value of $162,800. Counties in Georgia collect an average of 0.83 percent of a property’s assessed fair market value as property tax per year.

The tax burden of a house valued at $162,800 located in Albany would be $2,667 with 2017 millage rates.