Three tax bills in 2009?

While property owners must pay their 2008 taxes soon, if the county digest is completed on time this year, as promised, property owners will also pay their 2009 taxes this calendar year. Likewise, homeowners may get a third bill if the General Assembly approves Gov. Sonny Perdue’s plan to eliminate the Homestead Tax Relief Grant from 2008 tax bills.

Madison County Tax Commissioner Louise Watson said that most Madison County homeowners received $242.58 in homestead relief in their 2008 bills. If the state eliminates that break for 2008, then Watson must send out bills for $242.58 to homeowners who received the credit.

Facing an estimated $2 billion budget shortfall, the state is desperate to cut expenses and raise revenues. The elimination of the tax relief grant would put $429 million back into the state’s budget. But property owners would endure the blow during a particularly difficult time.

“At a time when we continue to hear about record home foreclosures and people struggling to make ends meet, it is hard to believe that homeowners won’t get the benefit from this credit that was approved through the legislative process last year,” said Jerry Griffin, Executive Director of Association County Commissioners of Georgia, in a press release about the proposed cut.

Watson said she believes the state shouldn’t try to apply the Homestead reduction to 2008 bills, since homeowners weren’t afforded any prior notification of the reduction.

“I don’t believe it’s fair to the taxpayers to apply it (the cut) to 2008,” said Watson.

She said she feels that if the cut must be made, it should be applied to 2009 bills. That way, homeowners with escrow accounts will be able to contact their mortgage companies and make necessary monthly payment adjustments to cover the increased cost.