June 2, 2017
Many supporters have contacted us about huge hikes in appraised values for many properties in Milton. So today (and perhaps for several days), we are going off-topic. Following are our quick impressions.
On Wednesday, Fulton County tax assessments were received in the mailboxes of Milton residents. Many of these assessments were shockingly high. In one Milton neighborhood, the mean and median appraised values increased by 56% and 56%, respectively. It seems that the appraisals of unbuilt lots increased even more (than parcels with houses) . . . all the 2017 appraisals we’ve seen were more than 100% higher than 2016 appraisals.
Something has clearly gone haywire in the Fulton County Tax Assessor’s office.
Such steep increases in appraisals are inherently unfair and disrespectful to citizens. There are two main issues. First, there should be a cap (8%? 10%?) on how much appraisals can increase year over year.
Second, many of the 2017 appraisals clearly bear no resemblance to reality. In many neighborhoods, there are recent homes sales that provide comparisons for establishing appraised values. For example, in one neighborhood, two homes with the exact same floor plans and similar lots received radically different appraised values. The lower-valued home sold less than a year ago and appraised at the purchase price. The higher-valued home appraised 55% higher than the lower-valued home that was purchased less than one year earlier! And we are hearing the same story over and over again . . .
And so far, Fulton County’s response can best be described as defensive double-talk.
First, Fulton County asserts that they are playing “catch-up.” Interpretation: In past we have been grossly incompetent, but now—trust us—we have gotten it right. As readers might know, for years, the Fulton County Tax Assessors’s office has been a poster child for incompetence. So now, they want us to believe that their most current assessments are correct. Doubtful.
Second, Fulton County asserts that average appraised values only increased 13%, as if this is supposed to make us feel better in Milton. However, unless you are math-challenged, you realize that a 13% average means that certain areas of North Fulton (e.g., Milton) are bearing the brunt of the tax increase. To bring the average up to 13% means you have some real huge increases to certain taxpayers . . . those of us in Milton.
Of course, Milton citizens have the right to appeal their tax assessments. However, we predict that the appeals process will be a nightmare for citizens. Given the blowback that is occurring, we anticipate a flood of appeals to the Fulton County Tax Assessor’s Office. This means months and months of backlog, with the typical problems we find with the Tax Assessor’s office: long call times, surly and incompetent claims processing representatives, lost documents, etc. To fix this government-created fiasco, individual citizens will spend a lot of time and money and experience a lot of frustration. You heard it here first!
Rather than (time/money intensive, frustrating) bottoms-up appeals by individual citizens, Fulton County needs to find a top-down solution. Fulton County needs to admit to its unfairness and incompetence in this matter. Elected officials, in particular, need to step up and address this issue for their constituents. Specifically, we call for the following:
- An admission by Fulton County that there may be serious problems plaguing our tax assessment process.
- A freeze on all assessments until a thorough investigation of the assessment process is completed. This means that 2016 assessments would remain in effect pending the outcome of an investigation.
- A report showing average appraisal increases by area, down to the subdivision. This will substantiate our claims that certain areas have been unfairly targeted for tax increases.
- Increased visibility into the algorithm used to assess property values. Citizens have a right to know “how the sausage gets made.”
- A full investigation of the tax assessment process by an independent third party.
- Calculation and dissemination of new assessments based on the recommendations from a third-party investigator.
- Reforms to the assessment process to make it fair to citizens. For example, we believe that there should be a cap on the rate at which assessments can increase year over year (subject to certain conditions—e.g., no improvements to the home, adjustments in square footage).
What does this mean for Milton?
This money grab by Fulton County will have significant negative consequences for Milton. It seems that appraisals on raw law were particularly steep. We looked at 4 random parcels and following are the increases in appraisals: 128%, 134%, 204%, and 222% for an average of 172%. This means there will be even more pressure (as if there were not enough) on owners of larger tracts of land to sell. Milton has already lost 75% of its equestrian properties. If these unjustified tax increases are allowed to stand, we will see an acceleration in already overheated development in Milton.
Of course, the impetus for the creation of the City of Milton was more local control. Tax-payers wanted a government that better reflected their values and desires. We wanted more of our tax dollars coming back to Milton for parks, police and fire protection, roads, etc. However, with the latest property tax assessments, we are seeing that local control has some fairly strict limits. Milton’s citizens need for the city, particularly elected officials, to step up and strongly challenge this patently unjustified jump in property taxes.
(We will likely publish a few more posts on this topic in the coming days.)
Milton Coalition 