What’s next
- Senior Cobb County Superior Court Judge G. Grant Brantley Thursday denied a request to stop Fulton County from collecting about $1,300 taxes that six current and former state lawmakers owe because of a 17 percent tax increase approved by the County Commission last month. He must still decide whether the tax increase is illegal.
- Brantley also scheduled a Nov. 5 hearing in a second lawsuit that also claims the tax hike is illegal.
A judge Thursday gave Fulton County a preliminary victory as it defends a 17 percent property tax increase from critics who say the county spends too much.
Senior Cobb County Superior Court Judge G. Grant Brantley did not rule the tax hike is legal. But he denied a request to stop Fulton from collecting about $1,300 in additional taxes that six current and former state lawmakers owe because of the tax increase commissioners adopted last month.
The judge did not explain his ruling. But the decision could indicate Brantley thinks the county is more likely to prevail in the court battle over a state law that singles out Fulton County and caps its tax rate this year.
That’s a setback for the lawmakers, who asked the judge to prohibit the county from collecting the new taxes and to declare the tax hike illegal based on the law aimed at Fulton. And it means other Fulton taxpayers must pay higher taxes, at least for now.
The tax increase will cost the owner of a $275,000 house an extra $140 a year, assuming the value of their home is unchanged. But with property values rising fast in some areas, some taxpayers are seeing much larger increases.
One of the lawmakers, state Rep. Lynne Riley, R-Johns Creek, said she and her colleagues would review the judge’s written order – due next week – before deciding their next step.
County Commission Chairman John Eaves called the ruling “a very, very positive sign.”
Thursday’s ruling is the latest twist in an ongoing battle over Fulton County taxes and spending. Critics have long complained the county spends too much and can cut spending without affecting basic services.
Responding to those complaints, the General Assembly last year passed House Bill 604, which prohibits Fulton County from raising its property tax rate until 2015 and would require a supermajority of commissioners to raise taxes after that. Supporters said the measure – which applies only to Fulton County – would force the county to cut spending.
Fulton officials say they’ve reduced spending and held off on a tax increase for years while other local counties raised taxes. But they approved the 17 percent tax increase last month, saying it’s needed to protect funding for Grady Memorial Hospital and services like libraries and senior programs. The tax hike is expected to generate an extra $60 million to pay for county services.
The six lawmakers filed a lawsuit claiming the tax increase violated HB 604. Teresa Proctor, an Atlanta resident and wife of the co-founder of the Fulton County Taxpayers Foundation – filed a second lawsuit making similar arguments.
On Thursday Brantley scheduled a hearing in Proctor’s lawsuit for Nov. 5. He also heard arguments on the lawmakers’ request to prohibit Fulton from collecting the extra money they owe because of the tax increase.
Josh Belinfante, the attorney for the lawmakers, argued the tax hike violates HB 604. He said the law is based on a 1951 “local amendment” to the state constitution that gave the General Assembly authority over various matters related to Fulton County property taxes.
Among other things, the amendment gave legislators the authority to determine the “date and time” when the county can set tax rates. Belinfante said HB 604 did just that by directing the county not to raise the tax rate until 2015.
Fulton County’s attorney, Tom Cauthorn, called that reasoning “legal nonsense.” He said the 1951 amendment gave lawmakers authority over some administrative and procedural matters but not the power to cap the tax rate.
Cauthorn said HB 604 wasn’t even in effect when commissioners approved the tax increase; commissioners voted to repeal the state law last year, citing their home rule powers under the Georgia Constitution. Belinfante said the County Commission didn’t have the authority to repeal the state law.
Because he has not yet issued a written order, it’s unclear why Brantley sided with the county. But it clearly was a victory for county officials.
Belinfante said it’s possible the lawmakers will appeal the decision.
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