According to Cobb County Tax Commissioner Gail Downing, homeowners will face a property tax bill increase during the next two years. The state Homeowner's Tax Relief Grant that previously funded a tax credit on homesteaded property will not be available this year or next.
"Declining state revenues during the current recession left the state without enough money to give the tax relief credits that homeowners have become accustomed to," Downing said.
Most Cobb homeowners will see an increase of about $228 on their 2009 tax bills. Those with a School Tax Exemption will see an increase of about $77. Increases will vary for homeowners living within one of Cobb's six cities.
In 1999, the governor and General Assembly appropriated the grant to counties, cities and schools, giving tax relief to homeowners in the form of a tax bill credit. According to legislation passed this year (House Bill 143), the grant will only be made available in the future if state revenues grow at least 3 percent plus the rate of inflation.
Downing believes giving homeowners advance notice will help them prepare for the increase when tax bills are issued in August. Homeowners can determine the exact amount of the 2009 increase by accessing their 2008 account information at www.cobbtax.org under the "Property Taxes" tab; search by parcel ID or address. The "Homeowners Tax Credit" deducted on the 2008 tax bill is the amount their bill will increase for 2009. Many homeowners with mortgages will need to make sure their tax escrow accounts are properly funded since their property taxes are paid by their mortgage company.
"It's unfortunate in slow economic times to have to deliver this message, but homeowners need this information so they can budget accordingly," Downing said.
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