Who'll Pay the Added 1% Sales Tax?

[Lewholt]

Next Wingnut, please.

[minnie]

Great ... my utilities have gone up, my food bill has increased, my property taxes went up (I know I read earlier this year the average increase would be approximately $40 ... how come everyone I know their taxes went up over $100?)- now everything I buy in Douglas county will be more expensive. Any ideas on when my paycheck will increase to help off set these costs? It's been frozen for 3 years now. It's getting harder to squeeze out more dollars. I guess I'll eat out less, shop less, back to necessities only ... anyone see where this is going??!!

[Polemics]

minnie wrote:

Great ... my utilities have gone up, my food bill has increased, my property taxes went up (I know I read earlier this year the average increase would be approximately $40 ... how come everyone I know their taxes went up over $100?)- now everything I buy in Douglas county will be more expensive. Any ideas on when my paycheck will increase to help off set these costs? It's been frozen for 3 years now. It's getting harder to squeeze out more dollars. I guess I'll eat out less, shop less, back to necessities only ... anyone see where this is going??!!

Sounds like a reasonable approach. Maybe if more of us had been satisfied with less money and spent that money wisely we cold have avoided some of our present problems.

[spitfire2]

I thought there was supposed to be an attempt to get people to spend more money to get the economy out of the dumpster but a 1% additional tax is passed. Just another case of the fingers tightening around our throats.

I just got notice that my credit card is jumping to 21.99% unless I want to owe them 3 grand in which case they'll cut my rate to 9.99% for a year. Is that not the definition of extortion? OK so I won't owe them anything which means I won't be spending money on credit.

That brings us back to the original question, who'll pay for the jail, or more correctly the bonds for the jail, if people are afraid to spend?(By the way, out of county tags at the mall does not equate to taxes collected, its who spends there and I see a lot of people walking empty handed in that mall.)

[Scott]

REALLY wrote:

I am glad to see that everyone that shops in Douglas County will be helping to pay this tax. How many out of town cars do you see in the Arbor Place Mall parking lot? Those people that come here to shop will be helping all of us out. I saw my property taxes rise this year and I really do not want to see this again. So I am glad that the SPLOST passed. All homeowners should be too. At least this way all of the apartment owners will be paying some way.

Funny thing about your property taxes increasing this year. Part of that was courtesy of the school system because sales tax revenue was down and the had to raise your property taxes to make up for it. You'll pay for it SPLOST or no SPLOST.

[Scott]

Bill in Dville wrote:

<quoted text>
Gotta disagree a bit here, Mike.
I would GUESS that most people aren't spending the extra time to drive to Douglas County for our 6% sales tax rate.
I wouldn't drive out of my way to save 1% on most purchases, will you?
If you spend $300 on something, the additional 1% is $3. Is that enough to make you shop in a different county? Not me, I'd likely spend more on gas than that.
$50 is a $0.50 (fifty cents) savings.
Now if you're talking about a $40,000 car (for example), I might drive a bit to save the $400 in sales tax, but I think they hit you up for that on where you live, don't they? I buy cars about every 4-5 years, so it won't happen often.
You've got to spend a good bit of $ for that additional 1% to be a material amount. Probably too much for me to be spending, anyway.

With all due respect, you are a bit out of touch with what has happened in our economy the past two years. I would advise that you read any marketing literature about consumers. Pick up a copy of AdAge, WSJ, Fortune, etc. The consumer mindset has changed, possibly for our lifetimes. Consumers are using coupons and shopping for discounts en masse. Discount chain store revenues such as Dollar General are off the charts. People who never imagined they'd be shopping for staples at Big Lots...are. For consumers it is perception of value; value being defined as a balance of price, quality and function. Believe it or not, us little people are willing to not only drive some distance to save a buck, but moms are shopping at multiple stores to get the penny special at Publix and then $.05 off per lb. at Kroger.

In my humble opinion, Douglas County and the Chamber of Commerce missed out on an incredible opportunity to support and grow its local businesses in favor of funding a new jail at twice what it should cost.

An outreach campaign with billboards, radio and print could have leveraged Douglas County's 6% sales tax to draw shoppers from those counties with a 7% sales tax. Rather than trying to squeeze an extra 1%, we could have potentially increased shopping in Douglas County by 5-10%. What effect would that have had on the local economy. Those folks eat at local restaurants, buy gas, pay sales tax. If we were to find a way to capture their email address for Douglas County updates and/or educate them about our historic downtown, restaurants, state park, Clinton Nature Preserve, festivals and events while they were shopping we might entice them to come back another time for a visit...then doubling their investment in our community. Imagine, then, that a small percentage of them come back and buy a $350,000 house in our community. Bingo- more revenue. I read a statistic from the DC Development Authority that locally owned small businesses contribute the greatest percentage return on our collective tax revenue. Instead of doing something dynamic to support them, we've made it more difficult for them.

The Chamber was asleep at the wheel. Their desire to support those of perceived power blinded them to what their membership empowers them to do.

Instead, as usual, we cut off our nose to spite our face. We drive for the quick solutin right in front of our faces instead of doing the hard work that could actually yield far greater economic benefits.

That being the case, tax revenues in general will be much lower because of the economy and consumer spending habits, which may inevitably cause us to raise property taxes to make up the difference in sales tax revenue projections and reality. Ergo, you will end up paying for it with your property taxes AND your sales tax.

[Lewholt]

minnie wrote:

Great ... my utilities have gone up, my food bill has increased, my property taxes went up (I know I read earlier this year the average increase would be approximately $40 ... how come everyone I know their taxes went up over $100?)- now everything I buy in Douglas county will be more expensive. Any ideas on when my paycheck will increase to help off set these costs? It's been frozen for 3 years now. It's getting harder to squeeze out more dollars. I guess I'll eat out less, shop less, back to necessities only ... anyone see where this is going??!!

Mine went up more.

[Lewholt]

mike wrote:

Perhaps the greatest argument made FOR the SPLOST was that other counties shop in Douglas County; therefore other counties will pay the extra tax instead of Douglas residents.
There seems to be a liberal mindset which sees changes (and new taxes) in a static world rather than dynamic. "People from other counties buy in Douglas County, therefore, people from other counties will pay the 1% tax, therefore, the county residents will not pay all the cost of the new jail; visitors will pay a sizeable portion of it."
Carroll County: Sales tax is 7%, Cobb County: Sales tax is 6%, Clayton county: Sales tax is 7%, Fulton County: Sales tax is 7%, Paulding County: Sales tax is 7%. Now, Douglas County Sales tax is 7%.
What we've done by passing the added 1% sales tax in Douglas County is tell the neighboring counties, they will no longer save money by coming to Douglas County to spend. So, will someone please advise me as to which of the neighboring counties will still find good reason to come to Douglas county to spend their money-- my inquiring mind would like to know.

How do our propertyy taxes get raised, Mike? Is it just something they do on their own?

[Lewholt]

Always wondered about that.

[kelly almon]

Lewholt wrote:

<quoted text>
How do our propertyy taxes get raised, Mike? Is it just something they do on their own?

if you were very much of a realtor, you would KNOW questions like this..Sounds like if you do possess a real estate license, your a RANK BEGINNER.WHo would use a realtor who doesnt have a CLUE about property taxes??????????

[Mike]

Kelly, I believe his question was either rhetorical or to find out if I understand the property tax procedure.

If the property tax digest is to be increased, it reqires a vote of the citizens to increase the millage. If the tax rates have to be increased on some homes to keep the digest up, no vote is necessary. Bottom line; to increase tax millage rates overall requires a vote of the citizens unless the overall tax collected remains the same after the millage is increased. It can indeed, create incremental tax increases without a vote.

That's my understanding of how the county taxes work, but I don't really know how school property taxes are regulated; since they're over two thirds of the property taxes, I consider myself remiss.

Is that what you understand?

[DCTC]

Mike, there is no public vote on millage rates. The BOC and BOE hold millage rate hearings for public input. Maybe 2 citizens ever attend these hearings. The boards can either keep millage the same, decrease millage or raise the millage to meet their budgets. Millage is not increased on "some homes" it is across the board. They try to increase the values of some properties. If the digest does not satisfy the budget, they can either cut the budget or increase millage.

NO PUBLIC VOTE IS REQUIRED!

Tax Rate

The tax rate, or millage, in each county is set annually by the board of county commissioners, or other governing authority of the taxing jurisdiction, and by the Board of Education. A tax rate of one mill represents a tax liability of one dollar per $1,000 of assessed value. The average county and municipal millage rate is 30 mills; the state millage rate in each county is 0.25 mills.

Municipalities also assess property taxes based upon county-assessed values and rates established by the municipal governing authority.

Property in Georgia is assessed at 40% of the fair market value unless otherwise specified by law.

Example: The assessed value--40 percent of the fair market value--of a house that is worth $100,000 is $40,000. In a county where the millage rate is 25 mills the property tax on that house would be $1,000; $25 for every $1,000 of assessed value or $25 multiplied by 40 is $1,000.

READ MORE HERE>>>
https://etax.dor.ga.gov/ptd/adm/taxguide/gen/...

[DCTC]

If they want to issue a general obligation bond for capital projects a public vote is required to pay these bond with property tax. That's what took place with the Nov 3 SPLOST/Bond vote. Bonds can be issues without a SPLOST. The city got approval for a $23 million 20 yr. bond last year. A millage increase was needed to pay the principle and interest.

[Lewholt]

kelly almon wrote:

<quoted text>
if you were very much of a realtor, you would KNOW questions like this..Sounds like if you do possess a real estate license, your a RANK BEGINNER.WHo would use a realtor who doesnt have a CLUE about property taxes??????????

I don't know. Sorry. I've sold over 200 homes. I'm clueless about property taxes. Sorry.

[Lewholt]

I'm an expert in real estate sales. I'm not an expert in property taxes.

[Lewholt]

And now that I'm thinking about it, I could care less what a properties real estate taxes are. I just sell em. Sell 200 homes and get back with me.

[Lewholt]

DCTC wrote:

Mike, there is no public vote on millage rates. The BOC and BOE hold millage rate hearings for public input. Maybe 2 citizens ever attend these hearings. The boards can either keep millage the same, decrease millage or raise the millage to meet their budgets. Millage is not increased on "some homes" it is across the board. They try to increase the values of some properties. If the digest does not satisfy the budget, they can either cut the budget or increase millage.
NO PUBLIC VOTE IS REQUIRED!
Tax Rate
The tax rate, or millage, in each county is set annually by the board of county commissioners, or other governing authority of the taxing jurisdiction, and by the Board of Education. A tax rate of one mill represents a tax liability of one dollar per $1,000 of assessed value. The average county and municipal millage rate is 30 mills; the state millage rate in each county is 0.25 mills.
Municipalities also assess property taxes based upon county-assessed values and rates established by the municipal governing authority.
Property in Georgia is assessed at 40% of the fair market value unless otherwise specified by law.
Example: The assessed value--40 percent of the fair market value--of a house that is worth $100,000 is $40,000. In a county where the millage rate is 25 mills the property tax on that house would be $1,000; $25 for every $1,000 of assessed value or $25 multiplied by 40 is $1,000.
READ MORE HERE>>>
https://etax.dor.ga.gov/ptd/adm/taxguide/gen/...

I did'nt think so. Bastards.

[Lewholt]

Mike wrote:

Kelly, I believe his question was either rhetorical or to find out if I understand the property tax procedure.
If the property tax digest is to be increased, it reqires a vote of the citizens to increase the millage. If the tax rates have to be increased on some homes to keep the digest up, no vote is necessary. Bottom line; to increase tax millage rates overall requires a vote of the citizens unless the overall tax collected remains the same after the millage is increased. It can indeed, create incremental tax increases without a vote.
That's my understanding of how the county taxes work, but I don't really know how school property taxes are regulated; since they're over two thirds of the property taxes, I consider myself remiss.
Is that what you understand?

I didn't know so I asked. It wasn't a trick question or anything.

[also mike]

We have more to offer then Carroll and Paulding, and you standa much beeter chance of not being robbed as in Clayton & Fulton and it is less crowded then Cobb. Pluse the rental residents of our couty buy stuff here and will pay the 1% as well.

mike wrote:

Perhaps the greatest argument made FOR the SPLOST was that other counties shop in Douglas County; therefore other counties will pay the extra tax instead of Douglas residents.
There seems to be a liberal mindset which sees changes (and new taxes) in a static world rather than dynamic. "People from other counties buy in Douglas County, therefore, people from other counties will pay the 1% tax, therefore, the county residents will not pay all the cost of the new jail; visitors will pay a sizeable portion of it."
Carroll County: Sales tax is 7%, Cobb County: Sales tax is 6%, Clayton county: Sales tax is 7%, Fulton County: Sales tax is 7%, Paulding County: Sales tax is 7%. Now, Douglas County Sales tax is 7%.
What we've done by passing the added 1% sales tax in Douglas County is tell the neighboring counties, they will no longer save money by coming to Douglas County to spend. So, will someone please advise me as to which of the neighboring counties will still find good reason to come to Douglas county to spend their money-- my inquiring mind would like to know.

[also mike]

of course the residents will pay most because we live here. But we will not pay the vast or all of it, what would you rather pay? 100% or 90%? The only other optin was to increase millage and propety tax.

mike wrote:

There has always been those from other counties who will shop in Douglas County, some small portion of them to save the 1%. That number, small as it may be, will be reduced. Likely, the overall percentage of gross sales tax revenue from out of county people has never been in excess of 7%, but it will now drop... Douglas County residents WILL pay the vast majority of the added sales tax...
But you have to admit, it was a good story from the politicians... it got the SPLOST passed.