County Continues HOST Information Push
The proposed one-percent sales tax will be on the Nov. 6 ballot.
Cherokee County leaders continue the push out information on a proposed one-percent sales tax voters will consider on Nov. 6.
County Commission Chairman Buzz Ahrens participated in two forums with Cherokee Bank and Cherokee Tribune to inform voters about the proposal. Ahrens is also making the rounds to make presentations during city council meetings.
Ahrens presented his measure to Woodstock leaders on Monday and will be at the Ball Ground City Council meeting Thursday at 7 p.m. to discuss the proposal.
The chairman noted he felt the forums "have done their jobs" and most participants asked good questions. One of the major hurdles is informing voters that the tax is not "asking for a new single dollar."
Ahrens said the proposal simply replaces one revenue source with another.
"We are saying that this is a different revenue source that directly impacts (by reducing) the real property taxes our residents pay," he added.
Dennis Burnette, president and CEO of Cherokee Bank, said the primary objective of both forums was to present information to voters, not to sway them one way or another on the matter.
Burnette added he felt both forums gave voters the opportunity to learn about the proposal on the Nov. 6 ballot.
"The presenters did an excellent job of presenting a very complicated matter in as simple terms as possible," he said. "Even more important, they listened, empathized and sought to understand."
A slideshow of the presentation can be found here.
How will you cast your ballot on the proposed HOST referendum? Participate in our poll and tell us in the comments below!
Commissioner Harry Johnston added he felt the forums were "informative," but did not draw a lot of people.
"Some of those who did were from the "just-say-no-to-everything" faction within the Tea Party," he said, referring to some of the attendees. "But I think most people, including most Tea Party members, want to move toward consumption-based taxes and away from property taxes. And that's exactly what HOST does."
Ahrens on Monday said the proposal reflects an effort across the state to implement property tax reform. The county commission garnered the support of Senate Majority Leader Chip Rogers (R-Woodstock), an ardent supporter of property tax reform, in its quest to place the referendum on the ballot. Rogers was the chief sponsor of the bill during the 2012 legislative session to allow the county to place the matter on the ballot.
The measure will be on the Nov. 6 general election ballot and, if approved, would impose a one percent sales tax. The revenue would be used to rollback the county’s M&O property taxes. It does not apply to the school, fire district taxes and parks bond imposed by the county. Nor does it apply to city property taxes.
Georgia law requires two questions to be placed on the ballots and residents have to vote yes on both in order for it to pass. Once enacted, the HOST does not have a sunset provision; it can only be terminated by referendum.
The law allows the county to use up to 20 percent of the funds for capital purposes. However, the Cherokee County Commission approved a resolution stating the board will use 100 percent of the proceeds to roll back property taxes as long as a Special Purpose Local Option Sales Tax program is in place.
No more than five acres on a qualified property would be eligible to receive the credit. In other words, a 12-acre property would only be allowed to receive the credit for up to five acres. The seven other acres would be treated as non-homesteaded property.
The tax is expected to generate around $30 million in revenue per year and county officials estimate that number would offset 100 percent of the county's M&O portion of the tax bill on homesteaded properties. It would offset roughly 70 percent of M&O taxes on other properties.
A home in the county that's worth about $155,000 would save about $335 per year if the HOST is implemented, according to county estimates.
If voters approve the HOST, the tax would be officially implemented in April 2013. The state allows the county to collect revenue from the tax for a partial year and then a full calendar year before applying the credits.
However, the county commission in a resolution stipulated it would start applying the offsets immediately and would use all funds collected through 30 days before the county commission sets its millage rate during those first two years of collections.
County leaders do feel most voters, when provided with the information, understand the proposal in front of them.
"I think the truth is getting out, and people are asking about it, but the false information is being talked about too," Commissioner Jim Hubbard said.
Hubbard was referring to a power point presentation being circulated by the now-defunct Review and Recommendations Committee To Assist County Government.
In the power point, the committee encourages residents to vote against the proposal. They charge the county will collect millions in revenue before dispersing the exemptions and will subsequently use the revenue to pay for capital expenses, both of which county leaders deny.
Johnston added he believes the "intentional" misinformation being spread by the committee will be the primary obstacle leaders will have to overcome to get through to voters. Saying there's "no logical reason for property owners to oppose" the HOST, Johnston added the proposal will result in almost all homeowners paying lower property taxes.
"Except for diversifying the revenue stream and spreading it more equally across the year, the county government gains nothing by implementing HOST," he said. "This is strictly something to benefit the taxpayers."
In This article
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Cherokee Bank
159 Woodstock Square Ave, Woodstock, GA -
Cherokee Tribune
521 E Main St, Canton, GA
Frank Jones
5:59 pm on Wednesday, October 10, 2012
Per the commissioners, there is a lot of "mis-information" being spread about the HOST tax. Maybe, but some of that mis-information is coming from the commissioners!
They claim that homeowners will "save" $335 on a $155,000 home. They don't tell you that the homeowner will PAY ADDITIONAL SALES TAXES and the net effect could be $0 tax savings or worse! If that household spends more than $33,000 in the county, the owner will pay more net taxes!
They claim that HOST will offset 100% of the M&O tax on the homestead properties. They don't say that we must each apply for the additional Homestead Exemption. If you don't re-apply, you won't get the additional exemption and you'll pay both M&O and HOST!
They aren't talking about renters who will pay the extra 1% HOST tax but receive $0 benefit!
They passed a resolution requiring 100% to be used to offset the M&O taxes even though GA law only requires 80%. They can pass another at any time to drop the offset to 80%!
They claim that they'll acelerate the offset so it will start in 2013 eventhough the law only mandates the off-set to begin 2015. They can change their minds at any time!
The following will increase by 1%: build/renovate a home; buy a boat, motorcycle, furniture, groceries, etc.
Homeowners will pay more Fed/GA income tax!
If it is revenue neutral, you must ask "Why is this better?" and "Who really benefits?". Vacant land & commercial owners will reap huge savings. The rest, not much, if any!
Dennis Burnette
8:58 am on Thursday, October 11, 2012
"Mis-information" (1) Presentation clearly shows savings are primarily due to out of county residents paying sales tax to reduce our property tax. And yes, renters will be paying sales taxes to help with sheriff’s budget, fire and other services they receive. (2) You do not need to re-apply for Homestead exemption. (3) As to 80%/100% resolution, the BOC has spending authority currently. This referendum has nothing to do with spending. (4) Changing their mind about accelerating the offset – Our laws allow them to change their minds on resolutions at any time on anything. (5) This is relevant to HOMESTEADS up to 5 acres - no long term relief for vacant land and commercial owners.
Dennis Sayre
7:41 pm on Thursday, October 11, 2012
I agree whole heartedly. Also, add an additional 1% to sales and watch how quickly buyers of cars, trucks, boats, and other high dollar merchandise goes to buy in Cobb County, Bartow County, Fulton County, ect... If the tax is "revenue neutral," why should I take the risk as a property owner?
John
9:33 pm on Wednesday, October 10, 2012
Another Cherokee County Boondoggle I suspect is aimed at ultimately marginalizing citizen support for what is left namely the School District portion of the County Property Tax. Who was it that brought us this idea...Chip Rogers? Hmm?
Frank Jones
10:06 pm on Wednesday, October 10, 2012
This does have the making for a boondoggle as it was Chip Rogers that brought it AND embraced by the same county commissioners that brought us Jimmy Bobo. The commissioners are so inept that (based upon the some of their statements):
1. They didn't read or understand the bond and lease agreements
2. They didn't put anyone in charge to see that Bobo was complying with the lease
3. They didn't obtain sufficient documentation to determine if he was solvent
4. They dragged their feet to evict him
5. They are just now asking for GBI assistance and a forensic audit only after the Grand Jury Presentments
And now they want us to trust them on implementing a new tax? Trust them to use 100% for the tax offset. Trust them to not raise the M&O millage rate in the future. Trust them to begin the offset early in 2013. They've fooled Cherokee County residents once, but hoepfully we won't give them a second chance!
Don
11:02 am on Thursday, October 11, 2012
Correction to last points -
#5 - they changed their mind and don't want to ask for GBI assistance now. They are looking at doing a forensic audit, but that will be a waste of time because they can't get the records needed to get past the shell company without a criminal investigation - which they are refusing to do.
Frank Jones
11:47 am on Thursday, October 11, 2012
Dennis, I'm glad you read the presentation on the Cherokee County website. However, I suggest another reading of it and the resolution may be beneficial.
Per the resolution, the "CURRENT" BOC commits to using 100% of HOST to offset M&O taxes and accelerating the offset to include 2013 and 2014. However, the NEW board begins 1/1/2013 and can issue a new resolution without breaking any promises.
It also states that the acceleration will allocate HOST revenue equally across ALL M&O taxes as opposed to homesteads first with the remainder to commercial/rental/vacant.
Out of county residents who shop in the county will contribute, however, there is no information as to how much they'll contribute. Their benefit to HOST is small but unknown.
Renters currently pay M&O taxes indirectly via their rent. M&O taxes for rental properties will not drop to $0 and as such, renters will pay M&O + HOST.
If HOST revenue is sufficent to cover 100% of M&O taxes for homesteads, the surplus WILL be used to offset a portion of M&O for all other commercial/rental and vacant land. Their owners will receive a disproportionate tax break at the expense of everyone else.
Per a converation with county tax office staff, it was stated that "using other counties as a model" it's LIKELY that the M&O millage rate WILL INCREASE in future years such that we'll continue to pay M&O taxes plus the additional 1% HOST.
You really want to trust the same group that allowed the BOBO fiasco?
Frank Jones
12:06 pm on Thursday, October 11, 2012
The county Board of Commissioners appear to be inept since they allowed BOBO to reside on the premises for 1.5 years without paying rent, they didn't oversee the development of an $18 million county liability, they didn't obtain sufficient documents to determine if the $18 million was spent appropriately, they haven't been forthcoming with the facts that the entire project is worth a mere fraction of what the county owes, they didn't require BOBO to put up any capital, and they allowed BOBO to run all operations through related shell companies.
Basic financial knowledge and procedures were ignored which show's their incompetence. A lack of due diligence & fiduciary responsibility resulting in an $18 million loss should be a criminal act commited by these elected leaders. BUt now, these same leaders who've shown they have no financial sense want us to trust them with another 1% sales tax!
If we approve HOST, we have no one to blame but ourselves!!!
Dennis Burnette
10:02 pm on Saturday, October 13, 2012
Re: Also, add an additional 1% to sales and watch how quickly buyers of cars, trucks, boats, and other high dollar merchandise goes to buy in Cobb County, Bartow County, Fulton County, ....
Misinformation: If you are a Cobb resident and buy a car in Cherokee, you pay Cobb tax- NOT Cherokee. Tax on cars is based on your residence, not where you buy.
Frank Jones
11:27 pm on Saturday, October 13, 2012
Agreed, cars and trucks don't matter however, all other purchases do: furniture, electronics, computers, clothing, boats, campers, jet skis, bikes, sports equipment, dirty bikes, you name it. People will have an incentive to purchase in Cobb.