Here's why it's unlikely Houston County residents will ever see a big tax increase

The Houston County Commission is expected Tuesday to pass a new budget that keeps property taxes at the same rate for the ninth year in a row.

Since 1990, the county government's millage rate only has gone up less than 1 mill. That means in 2018 a property owner paid $32 more in county taxes for a home valued at $100,000 compared to 1990.

That's because since 1982 county leaders have been limited in how much they can increase the millage rate.

In the 1980s a property tax cap was put in place for Houston County government that sets the maximum rate at 10.24 mills. The reasoning was to prevent property owners from shouldering the load for running a county government.

But the restriction also means county leaders and employees have to navigate some financial challenges, County Administrator Barry Holland said.

"It probably wasn't a bad thing all together when it happened, but it does present challenges — especially 30 years later," he said. "We're still struggling with revenue streams covering our expenses.

"This board has made it very clear they don't plan to raise taxes to balance the budget. We're going to do the same thing John Q. Citizen will have to do and live within our means."

Commission Chairman Tommy Stalnaker said in his budget presentation last week that it was a difficult budget process for the upcoming fiscal year.

The proposed $57.3 million general fund budget for Houston County is based on a 9.9 millage rate. (There is also a 1.1 mill fire tax for people living in unincorporated Houston. Incorporated residents also pay a city millage rate.)

The County Commission will vote on the millage rate later this summer.

"Over all Houston County is in sound financial shape — not great but sound," Stalnaker said in the budget presentation. "We have no general obligation debt and continue to maintain our fund balance."

The budget includes a 2 percent cost of living increase for county employees that will cost roughly $500,000.

But some employees are not pleased about the lack of merit raises, Holland said.

There's been an ongoing issue in the county with new employees making as much money as those who have more years on the job.

The county's tax digest is growing at a much slower rate in recent years, meaning there was not enough revenue to pay for merit raises, Holland said.

The newest tax digest will be released after the new fiscal year starts July 1.

"The commission tried real hard this year, and it was tough nut to crack just to find the 2 percent (cost of living increase)," Holland said.

Could the cap end?

The tax cap was the result of a referendum voted on by Houston County residents.

It was a way to stop "runaway tax-inflation," according to a April 5, 1987, Macon Telegraph and News article.

But within five years of it being implemented, some county leaders argued that the restriction was a burden on a then-rapidly growing residential community. It made it more difficult for the county's services to keep up with the growing population.

"County officials say they support the tax cap's principles of making county government more fiscally responsible," the 1987 article stated. "But they say it should provide flexibility and at least allow governmental budgets to grow as fast as the county digest."

The cap is based on the 1980 millage rate. The only way the millage rate can rise above 10.24 mills is if the county's tax digest decreases for three years in a row or if voters approve another referendum, according to Telegraph archives.

Holland said he doesn't expect the tax cap to lifted anytime in the near future.

"Your regular citizen is not going to remove a tax cap, so you can tax them more," he said.

This story was originally published June 18, 2018 at 11:58 AM with the headline "Here's why it's unlikely Houston County residents will ever see a big tax increase."