Despite Lower Rate, Alpharetta Officially Raising Taxes

By DOUG NURSE www.ajc.com

Only in the "Alice in Wonderland" world of government and law could a city cut taxes and still be said to be raising taxes.
The city of Alpharetta is cutting its property tax rate, but it legally has to advertise that it's increasing taxes.

Because of rising property reassessments and growth, the city will take in more money than it did last year even if it doesn't touch its property tax rates. In fact, if the city takes in $1 more than it did the previous year from reassessments, it has to advertise that it's raising taxes.
Alpharetta is cutting its millage from $6.24 to $5.75 per $1,000 in taxable property value, or a cut of .498 cents. But that's not enough to be revenue-neutral, so it's raising taxes.

Property reassessments for 2009 are generating about 7.06 percent more in tax revenue to the city than it collected in 2008.
To be revenue-neutral, the city would have to cut the rate to $5.47 per $1,000 in taxable values.
The city is concerned that many people are challenging the new reassessments, which could reduce the value of the property being taxed. The city must adopt the 2009 millage by June 30, well before the challenges are settled.

If the City Council were to roll back the millage to be revenue-neutral and if the amount of taxable property shrinks, the city could suddenly find itself with less money than it had last year.

Public hearings on the property tax rate will be conducted at Alpharetta City Hall, 2 S. Main St., at 11:30 a.m. and 6:30 p.m. June 12, and again at 7:30 p.m. June 19.