City of Atlanta Budget Update

On Friday, May 31, 2008, the updated Fulton County 2008 tax digest was distributed. The digest indicates that a combination of increased growth and tax reassessments will require a smaller property tax increase to close our 2009 estimated budget gap. Department of Finance analysis of the digest allows the administration to conclude that only 0.43 mill over 2007 tax millage will close the anticipated gap of $40 million.

The new millage rate translates into a $7.31 tax increase for a $100,000 home, a $24.51 increase for a $200,000 home, and a $41.71 increase for a $300,000 home. Table attached.

Since FY 2002 the millage rate has dropped by 1.51 mills from 10.86 to 9.35 as proposed in the administration’s FY 2009 General Fund Budget.

In the FY 2009 General Fund Budget we proposed four ways to eliminate the estimated $140 million FY 2009 budget shortfall including: reducing expenditures by creating work efficiencies and improved business practices, adopting budget policies that will allow for higher revenue anticipations, increasing revenue through adjustments in existing fees, and increasing property tax revenues. Our emphasis has been on reducing costs, but we knew it was not possible to solely rely on spending cuts. Even with these measures, we expect a $40 million shortfall that we proposed to close by a minimal tax increase for FY 2009 over FY 2008.

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About the City of Atlanta Property Tax

An Atlanta property tax bill consists of taxes levied by each of the following entities: The State of Georgia, Fulton County (or DeKalb County), Atlanta Public Schools, and the City of Atlanta. It’s important to note that the City of Atlanta’s property taxes account for less than one-quarter (25%) of the total annual bill.

Calculating the City’s Property Tax

The formula used to calculate a rate payer’s property taxes owed is the Assessed Property Value (calculated at 40% of fair market value) minus exemptions (Basic Homestead, etc.) multiplied by the millage rate.