Friday, October 20, 2000

Commissioner defends tax collection charges to school board

By JOHN THOMPSON
jthompson@thecitizennews.com

Coweta County Commissioner Lawrence Nelms wants to clear up some misunderstandings about tax collections in the county.

Criticism was levied at the county for collection of funds from members of the public at last week's school board meeting. The funds are used to offset costs involved in the administration and collection of property tax for the school system. Currently nearly 72 percent of the property taxes collected go to the school system.

Nelms agreed with school officials who said the tax commissioner's budget is about $634,000 per year, but added that you must also include necessary work performed by the tax assessor's office. That increases the costs involved in collecting property taxes to approximately $1.5 million, he said.

Nelms said that Georgia law states that Coweta County shall collect funds from the school system to assist in the funding of tax administration and collection unless there is action by state legislation to change general state law by local act, and the matter has been discussed many times over the years.

The county collects approximately $682,000 from the school system to offset the cost of property tax administration and collection, while the total budgets for tax administration and collection equals approximately $1.5 million.

The commissioner said funds collected from the school system only cover approximately 44.6 percent of the costs involved, while the school system receives nearly 72 percent of the property taxes collected.

He also took exception to statements that the tax burden is falling on the students.

"The school children are not subsidizing the county budget. This is an annual expense budgeted by the school board to help cover the costs involved in tax administration and collection. This is not the only nonteaching expense budgeted annually by the Board of Education," Nelms said.

Since the same taxpayers pay both county and school taxes, there would be no tax savings if these funds were not collected from the school system, because the costs involved still have to be paid, he added.

"If the funds were not collected from the school system, then Coweta County would have to increase its millage enough to pay the entire cost for tax administration and collection," he said.

"That increase would be approximately four tenths of a mill," he added. "If the school system did not then roll back its millage rate, taxpayers would actually face a tax increase to pay for the same costs of collecting property tax, all in the name of saving the taxpayer money," he said.

Nelms also pointed out that if the school system actually covered 72 percent of the cost of tax administration and collection, which would match the amount of tax the system receives, the cost would be approximately $1.1 million, not the $682,000 currently paid.

For his part, Superintendent of Education Richard Brooks said neighboring Fayette County does not charge for collecting the taxes, but he said the state does allow for the counties to charge the school system.

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