The millage rate is set to go up for property taxes collected by the Polk County Board of Education to support schools and educators locally.
A proposed millage rate increase is on the table and the final public hearing for local citizens to comment on Tuesday starting at 4 p.m. in the Board of Education meeting room on South College Street in Cedartown at the PSD Central Office.
Per officials from the district, they are expecting to spend at least 30 minutes on the hearing before they move onto the regular session, where the millage rate will be up for a decision before the full Board of Education.
Two previous public hearings drew a lot of comment from taxpayers who were upset to see a larger-than-expected increase during a year where property tax assessments have also seen a big jump.
Videos from that hearing are available here.
District officials explained on the same page the reason for an increase from 12.88 mills to 14 mills even this year, and why the issue can’t be helped.
Polk School District has maintained a position (per the page) of being classified as a rural school district with much lower property values versus those within metropolitan areas, like neighboring districts in Paulding and Bartow counties, for instance.
Essentially, the district is required by law when they receive “equalization grant funding” from the state – totaling $7.9 million of the FY 2025 budget – to set the millage rate at 14 mills.
Otherwise the district has to cover the difference and lose the grant money, which to maintain levels would precipitate a tax increase and use of the fund balance to cover the difference.
The problem popped up and became an issue with the Polk School District over the past two years, when millage rates were set below the required 14 mills in 2022 and 2023 (13.927 and 12.382 mills respectively) that because of steady increases over the past years of assessed property values, meant that even with lower rates more money was ultimately brought in.
Prior to the previous 2 years of decrease per tax digest information, the PSD collected more than the required 14 mills by law, but kept it as close to 14 mills as possible to cover the local costs needed. Through the past five years of decreases, the PSD had only one year where collections went down in 2021, when the millage rate was set at 14.11 mills and collections went down by just $55,000.
A mill represents one dollar for every $1,000 of assessed value. The assessed value is set at 40% of the fair market price of a home.
So for instance, if you have a home that is valued at $100,000 taxes are assessed on 40% of its assessed value – the tax bill is derived on $40,000 of that valuation. The Board of Education’s tax bill alone would cost at that rate $560 this year to taxpayers. Go up to a $250,000 home, and the tax bill is looking like $1,400.
Over the past 10 years, millage rates have been on a historic decline and maintained compliance with state law. However the period from 2014-2018, those rates remained above 16 mills as shortfalls from state funding were being covered by local dollars.
Even with the Board of Education required to set the millage rate at 14 mills by state law to get the needed grant funding, local homeowners have voiced their displeasure at the millage rate increase, looking at the problem as being hit with what they consider a double whammy: increasing home values, and increasing millage rates taking more money out of their pocketbooks during already tough financial times with inflation costing consumers more.
The county already set their millage rate for property taxes, rolling back the advertised to 6.903 mills. The cities have not yet voted on their millage rates.
Editor’s note: I was not at the previous session for these two public hearings held by PSD on the millage rate increase, and therefore I am providing links to the information available. Coverage from the forthcoming session on video will be made available to Monthly+ subscribers as part of our regular meeting coverage on film. Additional coverage of the millage rate decision will also be available for those who prefer to read about it. – KtE
