Capping Commercial and Residential Assessments: A bad idea for Georgia

1. Capping Commercial and Residential Assessments: A bad idea for Georgia

2. Capping growth on commercial and industrial assessments will: • Cripple local governments • Reduce critical local government services • Degrade infrastructure • Harm economic development • Shift tax burden to residential properties • Benefit out-of-state companies City of SavannahLegislative Priority

3. Residential and commercial property assessments have grown at about the same rate Growth in Property Tax Digest City of SavannahLegislative Priority

4. Number of businesses have continued to grow as property assessments have increased Number of Business Tax Certificates Number of businesses have increased 24% since 2001 City of SavannahLegislative Priority

5. Stephens-Day Homestead Exemption provides substantial relief to homeowners, escalating every year Total Value of Stephens Day Homestead Exemption Homeowner Savings in 2008 = $5,580,000 City of SavannahLegislative Priority

6. Even with Stephens Day, City has reduced millage rate for all taxpayers as rest of tax digest grew City millage rate history City of SavannahLegislative Priority

7. Nearly 80% of residents surveyed are very satisfied/satisfied with local taxes paid for services provided % very satisfied/very satisfied with local taxes paid for services received City of SavannahLegislative Priority

8. Had the proposed cap on assessed growth been enacted in 2005, the City of Savannah would have $11 million less revenue in 2008 to invest in critical infrastructure and services. Property Tax Revenue City of SavannahLegislative Priority

9. Case studies of local revenue impact if commercial/industrial properties assessments capped in 2003 Note: from 2003 to 2007 combined City/County/BOE millage rate reduced 13% City of SavannahLegislative Priority

10. How has the City invested the revenue generated by the growth in property assessments? • Reduction of property tax millage rate • Substantial increase in public safety funding, increasing number of police officers, equipment, and fire services • Additional funding for key capital projects to maintain and expand capital infrastructure • Capital and operating resources to meet new federal and state environmental mandates City of SavannahLegislative Priority

11. Assessment cap on all property would hurt homeowners because… • Substantial loss of revenue, compounded annually, would result in: • Reduction or elimination of key infrastructure projects that improve neighborhoods and foster job creation • Reduction or elimination of critical municipal services • Continual financial crisis that will erode city’s fiscal health eventually reducing bond rating, response to natural and man made disasters, and services critical to citizen and business needs • While capping commercial and industrial assessments may help out of state landowners, a homeowner tax relief program keeps the dollars in the local economy. City of SavannahLegislative Priority

12. The smart alternative: targeted property tax relief for homeowners to: • Foster homeownership which will in turn build stronger neighborhoods • Keep tax rebate dollars in the local economy to help Georgia businesses • Provide sufficient funding for local governments to maintain infrastructure and provide critical services like police, fire, and economic development City of SavannahLegislative Priority