Duluth, GA - After the county said, "no new taxes," they promptly adjusted the millage rate - the percentage used in calculating your property taxes - to increase tax revenue. Following in line appears to be the city of Duluth. An increase in taxes won't necessarily impact the residents greatly but could push some over the edge and force them to look at doing a Short Sale, like the proverbial straw.
In its fourth 2 1/2-hour meeting Thursday night, committee members debated before agreeing to a tax hike of up to 1 mill to help stem an expected $2.27-million revenue shortfall for fiscal 2011.
A one-mill increase would equate to $60 a year on a $150,000 house and would provide a boost of $1 million to the city's coffers. Duluth's rate is 5.191 mills, compared with Suwanee's 5.77 mills and Norcross' 6.104 mills.
"Duluth's taxes are minuscule," resident John Bell argued. "I don't understand the problem. No one's going to notice."
What most residents don't realize is that 3 years ago, the property tax rate could be estimated to be between 1% and 1.5% of the value of the homes. Now that number is closer to 3% in many cases.
"The person who consumes the service ought to pay for it," retired businessman Harry Andrews, who opposed the tax increase, said after the meeting. "The truth of the matter is I can pay the taxes. Some can't."
Andrews favored pulling more out from the city's reserves. However, city leaders noted that doing so would put the fund in jeopardy for fiscal 2012. The city's policy is to maintain a minimum of four months in reserves.
Source: AJC
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