The Gwinnett County Board of Commissioners is considering holding the countywide general fund tax rate steady, but the average county homeowner would pay $143 less than last year in taxes to the county government.
That’s thanks to local and state exemptions that apply to any homeowner who lived in their home as of Jan. 1.
The local “value offset exemption” freezes the taxable value of homeowners’ properties the year they qualify for it — the first Jan. 1 they live in their homes. There are no income limits, age or application requirements. Those who qualify for the homestead exemption automatically get the value offset exemption.
“It’s such a benefit for homeowners here in Gwinnett County and a lot of people don’t even know that we have it,” Financial Services Director Buffy Alexzulian told commissioners in a briefing this week. “Even if market values increase, which they did this year for a lot of homeowners, they will not see an increase in the county government taxes.”
The value offset exemption does not apply to rental or commercial properties. For homeowners, it covers up to 5 acres of land. The exemption also does not apply to school district or city taxes.
The Legislature and Gov. Brian Kemp tacked on a one-time exemption this year amid a state surplus and climbing home values. It provides a credit on tax bills, for anyone who qualifies for the homestead exemption, equivalent to an $18,000 reduction in assessed value. For the average Gwinnett home, the county estimates the credit will come out to a $143 reduction in county taxes.
The state will reimburse the county for revenue lost as a result of that exemption, Alexzulian said.
The state exemption also applies to city and school tax bills.
Due to rising home values, maintaining a general fund tax rate of 6.95 mills will generate an additional $18.5 million in revenue compared to what the county budgeted in January, said Alexzulian. Rental and commercial property owners will mostly be paying the difference.
The county’s investment income also increased after the Federal Reserve raised interest rates, generating $5 million over budget.
But county spending from the general fund has also increased by $20.2 million since the budget was adopted in January, said Alexzulian. Inflation and market factors have primarily driven the increase, causing some capital projects to cost more than expected and raising the payroll spending needed for Gwinnett County to remain competitive in the job market, she said. Spending also went up to battle the county’s dire shortage of indigent defense attorneys, she said.
The general fund budget is now $486.5 million. The county in January had planned to balance it with $6 million in reserves, an amount now lowered to $5.3 million after accounting for increased revenue.
Countywide, residents also pay a recreation tax of 1 mill and an economic development tax of 0.3 mills. Other taxes, including those for emergency services and code enforcement, vary by city of residence. Last year’s total tax rate for unincorporated Gwinnett, including school taxes, was 35.36 mills.
The county will hold three public hearings on the millage rate before July 18, when the commission is scheduled to adopt it. The hearings will be Thursday, June 29 at 10 a.m. and 6:30 p.m., and Tuesday, July 18 at 11 a.m. All will be in the auditorium of the Gwinnett Justice and Administration Center, 75 Langley Drive in Lawrenceville. Comments will also be accepted online at gwinnettcounty.com until 9 p.m. July 17.
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