Taxing Issues

Taxing Issues l by Martin McCormack

The recent fervor regarding a potential incorporation of St. Simons and Sea Islands into a City entity has raised the issue of taxation and the municipal services to be rendered.

Brilliant think tanks have undertaken analysis. The UGA Carl Vinson Institute reported on the fiscal feasibility of a new city. GA Tech’s Center for Economic Development Research is studying the fiscal impact to the existing area.

Incorporation proponents imply the transition will be relatively seamless, with the transfer of administration and oversight. City supporters profess the majority of funding will come from non-property tax sources, such as franchise fees, lodging and alcohol sales taxes. Opponents are relatively sure another layer of government will bring considerable costs, stating the required staff of a city structure will assuredly result in higher property taxes. Many are also concerned with the county’s contractual ability and inherent willingness to provide existing services at cost.

The County Tax Commissioner receives property taxes for the unincorporated districts and the City of Brunswick. Likewise the Property Appraisal Office establishes property values for all areas to generate the Real Property Taxable Digest. This configuration would inevitably continue for an additional city. Presumably just another column or two in the massive database of spreadsheets tallied annually. Initially anyway, before legislative tweaking kicks in.

Relief from certain aspects of taxation typically comes in the form of specific local exemptions. In Glynn County the most popular and extensively used is the “L5” Scarlett-Williams. It offered notable relief during the era of skyrocketing home values at the start of the millennium. Once in place, such exemptions become rather sacrosanct and stay forever. Exemptions are an interesting creation. Naturally there are segments of the population that need and deserve the financial relief. And all Jeffersonian fans aspire to minimize their governmental taxation. Exemptions are very popular with voters, and once put on the ballot, typically pass like a freight train through the night

A more controversial exemption is the Local “L6” that offers school tax relief for seniors on limited incomes. At face value this is sensible for seniors on fixed incomes who supported the schools for years and whose children are now grown and pay their taxes for public school usage. Notwithstanding, a solid educational system is a benefit to the entire community. Yet the “L6” went a little akimbo. The legislation was flawed from lack of forethought and the logistics of application. Originally intended qualifying incomes were misconstrued and the magnitude of the impact by the participating group was not given due consideration. However, in political circles, proposing exemptions is a popular pastime to garner votes. Exemptions don’t relieve a burden; they just transfer it elsewhere.

Regarding the evolution of a new city structure, it is presumed and desired that the recent studies will lead to a path of logical and fair tax treatment, whether the journey is towards incorporation or consolidation. Please bear in mind that County Tax Employees and the Property Appraisal Staff do not legislate the rules; they simply do their best to administer the regulations put forth by the policy making powers and offer their best customer service possible to get you through these taxing issues.