Why Do They Bother?

Brookhaven is all in a tizzy because their bureaucrats have successfully foisted a 40% millage rate increase on the citizenry. As expected, the spend-and-tax advocates, mostly elected officials, have come out in support with the usual, feeble rationalizations. The first is the "pennies a day" that somehow is supposed to justify their out-of-control, profligate spending. This garnered pushback from taxpayers with one commenting "Back at you. What have you done to save pennies a day?" The obvious answer is "nothing" as they haven't even tried. 

Next they trotted out the "city taxes are a small part of your total property tax." Yes, you've heard that one before from our very own Mother Mayor attempting to justify the constant back door tax increases in our slice of heaven. While there is a property assessment freeze, do not think for a minute that property sales are nonexistent or forget that at closing that property marks to market. Hence, a free and easy tax increase. 

You have to wonder if the Georgia Municipal Association puts on seminars offering up all these talking points. While they are incredibly idiotic they are equally consistent. Surely these apologists didn't meet up at a pub with one saying to another, "well, this is what worked for me, after all I did win re-election." That said, in the world of politics, stupid is virally contagious. 

The irony? Well, these spend-and-taxers are all Blue Bellies and these faux cities would not even exist had it not been for the efforts of fervent Red Breasts who wanted to isolate our communities for wasteful spending at the county level. Clearly no good deed goes unpunished.

Is It Enough?

In a recent discussion regarding the Flock contract, Mother Mayor opines:

"These changes don't feel insignificant to me. And, again, I support this technology, but ... we need to own the data, we need to control how it's retained and we need to control how it's accessed, and it feels like this latest round of changes just suck that right away from us."

Wow Mother Mayor, want to apply that kind of logic to the proposed changes to the city charter that open up a very wide avenue for unrestricted tax increases without the burden of putting that to the citizens of Dunwoody? See, you may not think so, but quite a few citizens, and taxpayers, in this city would say that these changes don't feel insignificant either. Yet you're out there on social media promoting and defending these changes with rather dismissive comments regarding how "this clears up some contradictions in the charter about assessments." Pray tell, what exactly are these contradictions?

The proposed changes clearly state that no referendum is required nor is any limit imposed for Special Tax Districts, general obligation bonds, and (heaven forbid) revenue bonds. Anyone who has been watching the shenanigans at city hall will expect a flurry of "Special" Tax Districts being created.

King John offers his $0.02:

Heneghan opinion - I believe this modification sidesteps the Charter requirement of a maximum ad valorem tax rate of 3.04 mills by not counting taxes for Special Tax Districts, general obligation bonds, and revenue bonds. 

One of the constant chants coming from the pro-Dunwoody crowd was "Local Control!" Said it loud. Said it proud. But how do we, the people, exert Local Control? If you would actually read the city charter, you might be called on, some day, to fess up to the fact that our elected officials are virtually powerless. That's why when there is an issue and someone invokes "Mayor Deutsch" your response, if there is one, is to tell them which city bureaucrat to email and to please cc the mayor. Why? Because you are prohibited from doing exactly what you told them to do. We elect folks who cannot tell anyone, except the City Manager (when he's around), to do, or even look into, anything. Nada. And both city managers have made it clear to our elected officials that he only has to keep four of them happy. Not ecstatic, just not pissed. 

So the only way, we the people, can exert Local Control is thru the ballot box--voting on referendums. You undermine that, you take that away, you are clearly stating that we the people should be subjugated, that we should be held powerless, and subject to the whims of unelected bureaucrats. You have made it very clear where you stand on the issue of real Local Control.

But here's is the closing question: is there any level of taxation where the Mayor, or these unelected bureaucrats would say is enough and any more is just too much?

Homestead Season

We're entering tax season, income and property, as early in the year is your opportunity to investigate your homestead exemption options. The standard exemption you get for just living there, but there are many more. At least in DeKalb county. Some are for various service members, some are for disability, and some are age. The key element of some of these exemption classes is the homeowner is exempted from any and all school taxes, a vast majority of the total tax burden. 

Naturally, those adhering to the notion that more government makes a better world detest these exemptions claiming that everyone should pay because we all benefit from an educated population. There is an implicit, and false, assumption in this argument: that public schools, who are levying this tax, are actually educating all those kids. They address the fact that public schools are handing out diplomas to kids lacking the intellectual stamina to read all the way to the end of a sentence, by simply ignoring the fact. In their world, no fact that does not support their dogmatic beliefs simply does not exist. You can't argue with that. 

Beyond the standard exemption almost all the others are means tested, and for some olde fartes in daVille this inflicts the pain of envy, because in neighboring Cobb County, you simply age into it.

Combine these high taxes, the highest in the state, with bottom-of-the-barrel education outcomes and looming prospects of school redistricting and you must wonder about those homeowners who say they moved to Dunwoody for the schools. What were they thinking? Well, they weren't. That's the only reasonable explanation. Is the commute really that much worse? Hardly. The schools are better. Are the taxes higher? Nope. The schools are cheaper. Are the houses inferior? Not by a long shot. You don't have to jump through hoops for that homestead exemption. 

If you live here, fine. Just don't move here because the schools are so good and such a great deal. They're not.

Property Taxes

Oh please! Not again. Sorry, but it is a never ending saga.

Our neighbors in Fulton County are in a bit of a snit over what they see as unfair treatment of homeowners vs commercial property owners as it relates to assessments. They have observed that homeowners are assessed based on comparable sales, while commercial real estate assessments are calculated by other means, often resulting in under-assessment of these properties. Not surprisingly, the homeowners assert this means under-payment of property taxes by commercial property owners. 

Do they have a point?

Yes, they do. Despite what our head cheerleader would like you to believe there is quite a bit of turnover in the residential real estate market making comparable-sales assessments not only possible, but also the most reasonable method of assessing market value. 

Commercial properties do not see that kind of sales turnover and the businesses that own them would balk at that form of assessment anyway. Businesses view these properties, these buildings, as assets, and for business and tax purposes, assets depreciate, representing the service life of an asset and the need to replace it. Helps explain why they love the occasional teardown and rebuild. Plus, local governments will shield these "re-developments" from any taxes for a few years, allowing for that depreciating assets algorithm to kick in. 

The folks in Fulton have observed that when commercial properties do go on the market and do sell, they often command a market price twice or more than the county's assessment. Anything else would be man-bites-dog headline news. It turns out this isn't just Fulton, but DeKalb as well, and we have an existence proof very close to home. Prior to selling to the city, the owners of the building that is now city hall, were appealing the county's assessment of $2M. Before the appeal was resolved they sold that very same property to the city for $4M. For all the time these properties are not assessed in the same way your home always has been, commercial property owners have been carrying one half the tax burden you bear. The next time some soft-brained adultling whines that apartment dwellers pay the "full tax" you might try reminding them that apartments are commercial properties. 

You might also remember, at the ballot box, how this city has bent over backwards for commercial properties, and their propaganda notwithstanding, they have done little for you. After all, have you heard of the mayor or anyone on council reaching out to the county to create an assessment process that more accurately marks commercial properties to true market value? No? Well, have you heard any of them dismissively point out it is the county, not the city that assesses property? Thought so.