Gwinnett County's Tax Commissioner's Office announced late Wednesday that a key property tax exemption was missing from some homeowner bills. This error, attributed to a software contractor, affected a small percentage of property owners. The county is now correcting these bills to ensure homeowners receive their rightful tax relief.
Key Takeaways
- Hundreds of Gwinnett County property tax bills had a homestead exemption missing.
- The error was caused by a property tax software contractor.
- Affected homeowners represent 0.1% of the county's property owners.
- Corrected bills are being mailed, with a new due date of November 15.
- The homestead exemption helps offset rising property values for owner-occupied homes.
Software Glitch Impacts Homeowners
The Gwinnett County Tax Commissioner’s Office confirmed that a property tax software contractor was responsible for the billing error. The mistake led to the omission of a significant homestead exemption on hundreds of property tax bills. This exemption is crucial for many residents, as it helps reduce the amount owed on their primary residences.
Denise Mitchell, the Gwinnett County Tax Commissioner, expressed her commitment to resolving the issue. "I am working to ensure this does not happen again and that all affected taxpayers have heard from us," Mitchell stated in a news release. Her office initiated an internal audit after reports of incorrect bills emerged.
Affected Property Owners
- Only 0.1% of Gwinnett County property owners received incorrect bills.
- This percentage translates to hundreds of erroneous bills.
Understanding the Homestead Exemption
The homestead exemption is a valuable tax relief program for homeowners. It applies to owner-occupied primary residences and offsets a portion of the assessed value. In Gwinnett County, this exemption has been particularly beneficial as property values have surged in recent years.
For example, a $325,000 home purchased in 2002 would have an assessed value of $125,000 for school taxes if the homestead exemption was applied. Without it, the assessed value would be significantly higher, leading to a much larger tax bill. The exemption helps to freeze the government portion of taxes, even if property values increase.
"The homestead exemption is a critical tool for homeowners to manage their property tax burden, especially with rising home values," said a county official familiar with tax policy.
Long-Term Benefits of the Exemption
The property tax freeze, part of the homestead exemption, has saved many homeowners thousands of dollars over the past four years. This is particularly true for those whose home values have spiked. The exemption helps to stabilize tax bills for long-term residents, preventing sudden increases due to market fluctuations.
Gwinnett County Housing Data
According to the U.S. Census Bureau, Gwinnett County has approximately 350,000 housing units. Both county and city homestead exemptions apply automatically to about two-thirds of these owner-occupied primary residences.
Corrected Bills and New Deadlines
The Tax Commissioner's Office confirmed that corrected property tax bills are being mailed to all affected homeowners. These new bills will reflect the proper homestead exemption. The due date for these corrected bills has been extended to November 15, allowing residents ample time to process the updated information.
Bobby Simpson, a spokesperson for the Tax Commissioner's Office, noted that letters were mailed to affected taxpayers on Thursday. This communication aims to inform residents about the corrections and the new payment deadline.
Impact of State Law Changes
The issue of property tax exemptions has been a topic of discussion across metro Atlanta. House Bill 185, also known as the "Aumentum" bill, allows local governments and school districts to opt out of state-mandated property tax breaks for homeowners. This bill imposes strict caps on assessment adjustments unless the vendor, which was the case here, is not known to local government.
In Gwinnett County, both the county and school board commissioners opted out of this new law. Their decision ensures that homeowners continue to receive the full benefits of existing homestead exemptions. This move means taxpayers will save more than they would under the state's new law.
Tax Bill Due Dates
- Original due date: November 1
- New due date for corrected bills: November 15
Preventing Future Errors
Commissioner Mitchell emphasized that the county cannot fire the contractual vendor responsible for the error due to existing obligations. However, she indicated that the county would take steps to prevent similar incidents in the future. The internal audit and public communication efforts are part of this commitment.
The county aims to ensure accuracy in all future billing cycles. This includes reviewing software performance and contractor accountability. The goal is to maintain public trust and ensure fair taxation for all Gwinnett County residents.
