Outrage in Georgia as one home owes $8 in property taxes and another of the same value owes $3,326
- A quirk in local ordinances can produce vastly different tax bills for households
- Do you think YOU have been affected by unfair property taxes? Let us know at money@dailymail.com
- READ MORE: The American cities where home prices are falling the most
Property taxes are notoriously variable by state and even county, but some local quirks can put newer homeowners at a much greater disadvantage.
One such place with wide discrepancies for homeowners is Muscogee County, Georgia. Here, taxes can vary based on the year a home was bought.
An expert pointed to a how owners of two similar homes worth $330,000 have property tax bills that vary by thousands of dollars a year.
One family, who bought their property in 1980, paid less than $8 in property taxes last year.
By contrast, another with a similar value purchased five years ago, owed $3,236.
In November Georgia residents will vote on capping assessed property values at inflation
The vast difference in bills is due to a local law passed in Muscogee County in 1982, the Associated Press reported.
The publicly voted-on local rule froze property values for primary residence homes at that point in time for the purpose of the tax assessment.
This means those who bought their properties in the area before then pay property tax calculated on the value of their home at purchase.
But those who bought after then face taxes that steadily rise over time - as the assessed value of a home rises.
The result: longtime homeowners pay very little, newcomers pay more and businesses face some of the state's highest property tax rates, said.
'Anytime you grant an exemption, you create an inequality,' Suzanne Widenhouse, the county's chief appraiser told AP.
In November, Georgia residents will have the opportunity to vote through a ballot measure that would amend the state constitution, capping assessed property values at the rate of inflation.
If passed the measure - to be voted on by referendum -would not undo past increases however.
Georgia cities, county government and local school boards can use a one-time escape hatch from the new measure if it passes (Stock image of houses in Georgia)
Georgia property tax collections rose 41 percent from 2018 to 2022 (Stock image of property in Georgia)
If it passes, then Georgia cities, county government and local school boards can use a one-time escape hatch to opt out in early 2025.
Georgia property tax collections rose 41 percent from 2018 to 2022, with total assessed value rising by nearly 39 percent, AP reported.
State lawmakers told the publication that rising property tax bills is one of the most prevalent concerns they are hearing from voters.
Senate Finance Committee Chairman Chuck Hufstetler, described the proposed tax cap as a 'tremendous piece of tax legislation to relieve taxpayers in the short term, and over the cap, in the long term, keep their taxes down.'
