Tense Hearings Start over Tax Increase!

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A throng of taxpayers came out last week to show their frustration over a recent and sudden tax hike, which comes in the wake of several other increases in the county.Last Thursday, August 23rd, the county held the first of several public hearings to discuss the county’s recent increase in property taxes. The increase is the result of a decade-long court case involving Young Life of Texas and the Pickens County Assessors’ Board over incorrectly assessed land. Recently, the parties reached a settlement, where the county will pay Young Life $400,000. Repeatedly over the course of the first hearing, Sole Commissioner Robert Jones said the initial settlement was a seven digit amount. Jones, however, never disclosed the amount, saying only that the county was able to negotiate the first amount down. As such, the settlement, the $400,000, will be placed on the backs of Pickens County property owners in the form of a millage increase, an increase of over nine percent.

Citizens collected in the commissioner’s room in the county administrative building Thursday evening to hear an explanation of the tax and answers for the sudden increase, although County Attorney Phillip Landrum III was not present to assist with explanations. Landrum, however, was present at Friday’s hearing and is scheduled to attend the hearing on August 31st. Jones started with an overview of the situation, saying that the increase was a result of the recent settlement with Young Life of Texas.

“We were planning to (sic) keeping the millage at 6.26 as we have in the past,”

he said,

“but with the settlement of the lawsuit with Young Life that had started back in 99’ we are, at this point( the point of raising taxes) to clear this up.”

Citizens, though, were concerned that the increase is set to yield $656,694, when the settlement of the lawsuit is $400,000. County Financial Officer Mechelle Champion explained the situation.

“We looked at the 2011 gross digest—the one billion five hundred, forty one thousand. We (then) used that to base our 2012 budget on. When we got our first consolidation sheet on July the fifth, 2012, we already saw a decrease of $30 million; we had already based our 2012 budget on that, so that’s the 237 plus the four hundred thousand for this lawsuit; that’s where the $656,00 comes from.”

In a recent email to FYN, Champion explained the matter further.

“The $656,694 is the difference in the total taxes levied in 2012 and 2011. We based our 2012 budget on taxes on digest being $9, 286, 179,”

she wrote. More clearly, Citizen Ken Pint summarized the explanation during the hearing by saying that this meant the county over-estimated its budget. Commissioner Jones confirmed this.

Jones also explained the history of the suit. The case, he said, started in 1999 when Young Life of Texas bought property from The Georgia Baptist Assembly, an agreement involving the purchase of 25 acres of land and the buildings on the property. According to Jones the land was tax exempt.

“Georgia Baptist then paid taxes on property outside that boundary,”

Jones explained, “

When Young Life bought the property, they then got the same exemption, except they would be buying more property in excess of that to increase their land holdings. And that’s when they got into a conflict with the board of assessors on what would be tax deductable and not tax deductable land.”

He went on to say that the ordeal started in 1999; it soon went to court, where the county lost that case. In 2007, the case came back up again; it went to court again and the county lost again. The BOA then brought it to appellate court and the BOA lost again. In January or February, Jones said he had the opportunity to change out three members on the BOA. Subsequently, the board was able to bring all parties into mediation. According to the discussion, six months previous, the judge told the BOA that he would rule in favor of Young Life, yet the BOA went forward with the case.

The citizens seemed to understand the situation, that Commissioner Jones was not responsible for the incorrect assessment and the subsequent tax increase. They did, however, show frustration over the county’s Board of Assessors and Chief Appraiser Roy Dobbs. The frustration seemed to have two pressure points: 1) Knowledge that the judge would rule in favor of Young Life, but continuing the case regardless of this fact. 2) The incorrect assessment of the Young Life land.

Taxpayer Gary Copeland criticized the county spending measures, questioning why the settlement became the burden of the taxpayers.

“It’s nice that we could go out and build all this other stuff for recreation and all, but we can’t come up with $400,000?”

he said, referring to the on-going courthouse project and recreation center. Jones explained these projects are paid for with SPLOST money. Other suggestion included taking out a loan to pay the settlement, but Jones said state law prohibits him from incurring debt to the county that cannot be paid back in a year.

The discussion swiftly moved from the increase to the BOA’s credibility, raising numerous doubts in its ability. Taxpayer Ken Pint said he was concerned about the recent assessment of his property, saying, according to the assessment, his property’s value increased 50 percent, noting the increase comes at a time of significant economic downturn.

“I got a 50 percent tax increase,”

he said,

“and now you’re asking for another 10 percent; I have a hard time with that.”

Commissioner Jones seemed to sympathize with the concerns of the citizens, reassuring them that the county could reduce the millage rate next year when the settlement is paid off. He did note, however, that the digest could have more corrections as the year progresses, due to reassessments.

Champion said that the county must pay the settlement by January 15th. The final hearing will be held this Friday, August 31st at 9:30 A.M.

See the videos of the first two hearings below.

2012 August Pickens BOC Tax Increase One from Fetch on Vimeo.

2012 AUG PICKENS BOC TAX INCREASE 2 from Fetch on Vimeo.

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