Gwinnett County Seeks to Bill Taxes

Gwinnett County’s 2009 millage rate and tax billing have been tangled in the ongoing Service Delivery Strategy (SDS) dispute with Gwinnett cities and as a result, Gwinnett County filed a petition for a Temporary Collection Order (TCO) last month. The TCO hearing will be held on Aug. 11 at 1:30 p.m. in Gwinnett Superior Court.

The TCO is a remedy of law for local governments that allows the billing of property taxes to occur without an approved tax digest from the State Revenue Commissioner. The State Revenue Commissioner has not certified Gwinnett’s tax digest, due primarily to the fact that the government has not set a formal millage rate. The Gwinnett County Board of Commissioners denied a proposed millage rate in June after holding three public hearings on a proposed tax increase.

“The delay in tax billing negatively impacts the County, the school system and the cities – primarily from the lack of available resources to pay the expense of operations,” said Commission Chairman Charles Bannister. “We (the Board of Commissioners) were prepared to move forward in July with a millage rate adoption that would have been revenue neutral to the County.”

This contemplated rate would have produced the same amount of tax revenue as the County received in 2008. In addition, the rate structure also would have been compliant with state law in regard to the Georgia insurance premium tax statute.

However, the cities stated they would file an injunction if the Board proceeded to adopt the millage rate. Therefore, the County felt the best alternative was to seek a TCO in order to move forward temporarily with 2009 tax collections.

The TCO only allows the billing of 2009 taxes based on a temporary millage rate. Ultimately, the Board of Commissioners must adopt the final millage rate publicly, and the tax digest must be approved by the State Revenue Commissioner. The millage rate contemplated in the TCO maintains the revenue neutral status previously contemplated by the Board of Commissioners, meaning taxes collected in 2009 will yield the same revenue as the County received in 2008.

Once a final millage rate is set by the Board, the 2009 property taxes will be reconciled and taxpayers will receive an adjustment. The 2009 temporary millage rate proposed in the TCO is 10.94 for taxpayers in unincorporated Gwinnett County and 12.00 for taxpayers in incorporated Gwinnett.

By comparison, the 2008 adopted county rate was 10.97. In accordance with state law, the unincorporated taxpayers are due a rollback for insurance premium taxes, which equates to 1.06 mills. More than 80 percent of county citizens live in unincorporated Gwinnett.

Gwinnett Co. Requests Ability to Bill Taxes

Gwinnett County Commission Chairman Charles Bannister announced today the Board of Commissioners will seek a Temporary Collection Order (TCO) for collection of 2009 property taxes.

According to Bannister, this action, which is provided for in state law, will be filed in Gwinnett Superior Court and is most likely the speediest way to get bills to taxpayers so that local governments can begin to receive needed revenues. The decision to file a TCO petition was finalized today.

Bannister said, “Tax billing has been tangled in the ongoing SDS dispute. Other options run the very real risk of inviting actions that could take several more weeks or longer to resolve. We think this action strategy will get the billing process going for 2009. All of us – the County, the cities and especially the schools – need tax revenues to meet payrolls and other obligations.”

Administratively there are downsides to the TCO. “A TCO is, as the name implies, temporary. Ultimately there will be the need for some type of final accounting, which could happen in November or December, we just don’t know right now” said County Administrator Jock Connell. “This will present administrative concerns and questions for our finance staff and especially the tax commissioner.”

Bannister stated that whichever judge gets the case will decide the details, but that the county would recommend using the 2009 property values as the basis for the billing.

Details on the billing calendar will not be available until after the TCO hearing; meanwhile, County staff has begun consultations with the tax commissioner. The County intends to file a TCO petition as quickly as possible.

Last-Minute Tax Filers, Opponents Delivered to Post Offices

The countdown is on to pay your taxes.

Filers have until midnight tonight to get their paperwork finished, stamped and postmarked to the IRS.

As Atlanta area post offices take on thousands of citizens in the final hours to pay their bills, protestors nationwide are also descending on a number of mail outlets to protest what they believe are unfair taxation rules.

According to organizers, "Tax Day Tea Party" events are slated nationwide in 2,040 cities. Participants hope to set a record for the largest-ever multicity demonstration.

Organizers state the Obama administration's budget will lead to record deficits, more taxes and slower economic growth.

Opponents of the Tea Party events claim Obama's policies would only increase taxes on the richest Americans, while giving tax breaks to the middle class.

The Tea Party movement got its name from both the acronym for Taxed Enough Already and the Boston Tea Party in 1773, as a number of colonists came aboard ships and dumped tea into Boston Harbor to protest taxation without representation.

While times have changed, the cry against higher taxes has not. Just as when we go to the polls to elect our leaders each year, today's participants are doing what many of us often take for granted - exercising freedom of speech.

If you are unhappy with how you are taxed, let your voice be head today.

Proposal Being Put Forward to Make Sure Senators Pay Taxes

State Sen. Eric Johnson (R-Savannah), chairman of the Senate Ethics Committee, is proposing a change to the Senate Rules on Tuesday that will require all Senators to be current on their state income taxes. Failure to pay their taxes could subject them to disciplinary action, which could include removal from the Senate.

“Serving in the Senate requires an oath to uphold the Constitution of this State and the United States, which includes abiding by State and Federal laws. Every Senator should pay their taxes just like we expect of every Georgian. However, there is no method to determine compliance. This rule will create an investigative tool as well as an enforcement incentive,” said Johnson.

Recent news stories have reported that 19 legislators, including three senators, are delinquent in State and Federal income taxes.

The Georgia Department of Revenue is currently conducting an investigation. Preliminary results show that some legislators have failed to pay income taxes since 2002. Currently there is no provision in state law to keep the Legislature from seating members who are behind on their taxes.

The resolution was filed Monday. For a more complete version of the resolution go to www.legis.ga.gov and do a legislative search for SR 452.