The County Cites Its Growth In Approving Higher 2024 Taxes

Henry County approved a three-mill increase in its property taxes for 2024. This represents the first change to the county’s millage rate in eight years.

Property owners within the four cities will see less of an impact. When considering the overall millage rate, factoring-in school and city taxes, three out of four cities will see a decrease in their total millage rate.

Henry County 2024 Taxes

Henry County has maintained a 12.733 millage rate since 2016. This applies within unincorporated Henry County. Now, this number will increase to 15.733 mills for 2024. The difference represents a three-mill increase. Property owners within each city pay a lower county tax based on services their city provides.

When establishing the increase, the county reduced its general fund millage rate. Concurrently, the board approved increases to the special service district tax rates. The special districts pay for the following:

• County Fire
• County Police
• County Recreation (Parks)
• County Unincorporated Services

Which cities are part of each special district?
Everyone within the county, to include properties within the four cities, are part of the county general fund and county recreation (parks) district. Similarly, everyone contributes to the county fire district. Property owners within the city of McDonough contribute 45% of the fire rate because the city has a fire department. This is new for 2024; county and city officials approved it during the last service delivery agreement. Finally, the county’s police district and unincorporated district are for unincorporated properties only.

How much will property taxes increase?

The three-mill increase is equal to three dollars per $1,000 in assessed value. For example, a property valued at $300,000 has an assessed value of $120 thousand, or 40%. If there is no homestead exemption, then the owner would owe the county an additional $360 (120 x $3) in taxes this year.

For owner-occupied homeowners with their homestead exemption in place, then the tax increase will vary for each person. This is because of the Henry County frozen homestead. The frozen homestead “freezes” a homeowner’s value when determining their county government property taxes. It does not apply to school board taxes.

The best way to determine how much exemption an individual receives is to view their property tax assessment notice or tax bill. When viewing the exemptions column, the standard base homestead is $15,000 for county taxes. Any amount over this is the benefit of the frozen exemption. Henry County Tax Commissioner Michael Harris shared they see some homeowners with over $100 thousand in exemptions because of the frozen provision.

Population Growth Brings About Need for Tax Increase

According to county officials, the tax increase is necessary to better support its population growth. About 5,500 residents, on average, have moved into Henry County each year since 2020. The latest population estimate, shared last month, placed the county at 262,500 residents. By 2050, it’s estimated the county will be home to 346,000 residents.

The higher population is causing increased needs in public safety. In one example the police department’s call volume rose 27% in 2023. To better support this growth, the county has a number of upcoming major building projects. They include a fire training facility, EMA / E-911 facility, courthouse and jail pod. New fire stations — the last new station opened in 2018 — and fire equipment are also increasingly being discussed.

The three-mill increase will generate $16.9 million for additional personnel and equipment needs.

Henry County Taxes 2023 vs 2024

The below chart shows the breakdown, between 2023 and 2024, for each tax rate:

Board Comments

Board members expressed their support for public safety in their comments before voting on the millage rate.

“We cannot stop people from moving here. We cannot stop people from developing their land, but we have to offer public safety services” shared Chair Harrell. “I am going to make sure that our county is safe, and that we are providing the services that are needed.” A number of firefighters and police officers were present at the board meeting. Chair Harrell asked them to stand and thanked them for the work that they do.

Robinson spoke about the county’s growth and public safety needs. ”Henry County is growing, has grown, and continues to grow. Our cities are growing, and that’s a great thing. We want the qualify of life here at home. In order to have that, it comes with growth. With our cities growing, the county has to grow. We have to make sure our public safety has what they need. The cities do not have the fire apparatus to support the apartments being built; they require the support of Henry County Fire Department.” She also responded to a resident’s remarks about apartments’ property taxes. “When [a developer] builds apartments, then the owner is paying property taxes. They then apply the taxes to each tenant. They are paying their fair share.”

Frozen Exemption Benefits Residents, But Also Limits the County Budget

Commissioners Anglyn spoke about his time spent with public safety during the past year. “The reason I trained with the fire department and have done ride-alongs with [police] is I wanted to see firsthand what they go through on a daily basis and also understand their equipment needs.” He also touched on the county’s frozen homestead exemption, and its impact to the county budget. “Our greatest blessing in this county for our taxes is also our greatest detriment. That is the frozen homestead exemption. Imagine trying to operate a budget with a flat line of collections, yet there is an increasing line of expenditures year-over-year. We have to make more investments in our fire department. We have to make more investments in our police department.”

Commissioners Price and Lewis commented although residents are seeing higher costs of living, the county is also experiencing increased costs. For example, Commissioner Lewis referenced the recent resurfacing of two subdivisions within his district. The cost was $1.2 million. Lewis continued the increase will better enable the county to prepare for its future, a task that previous leaders did not adequately manage. He expressed hope the county may one day be able to lower taxes in the future if there’s better planning.

The Board Approved in July to Charge Higher Impact Fees on New Construction

During the public hearing, a local resident asked the board to place the cost-burden for new services on new residents. In response, Commissioner Lewis referenced the board’s recent decision to raise development impact fees. The higher impact fees will increase funding paid by new construction to pay for capital projects. The impact fee is now $7,085.90 per new housing unit. This is an increase over the previous $3,544.46 fee. Commercial and industrial construction also pays an impact fee. Their fees are based on the project type and square footage. Please note the impact fee is paid in unincorporated Henry County only. The county does not currently collect an impact fee from any construction inside the four cities.

The 2024 Rate Better Balances Expenses Between the General Fund & Special Districts

Commissioner Wilson asked whether the current millage rates for police and fire are self-sustaining to pay for those departments’ budgets. They are not according to the county’s finance director David Smith. The general fund has been subsidizing these services. The 2024 millage rate ends this subsidy. In addition, Wilson asked about a dedicated fund balance for public safety if there is an overage within the special service district. Smith replied that is his intent so the service district can also pay for public safety vehicles and equipment.

Commissioner Wilson asked about homeowners who are exempt from school board taxes, those ages 70 or older. They will not benefit from the school district’s reduction in millage rate. Tax Commissioner Harris said about 12,000 homes qualify under this exemption. Their millage rate will increase the full three mills, if they reside in unincorporated Henry County. Wilson offered his support for a compromise — to increase the millage rate by 1.5 mills for public safety — before the board took its vote.

The board approved the three-mill tax increase by a 5–1 vote. Commissioner Wilson voted in opposition.

The Complete Picture: Overall Millage Rate

Henry County receives about 40% of the property taxes. About 55% goes to the school district. The final five-percent is for the water authority. Please note this calculation does not reflect the city taxes. Each city has a slightly-different tax rate.

This year, Henry County Schools approved lowering their millage rate. Specifically, they lowered the bonds millage rate from 3.628 mills to 2.000 mills. They maintained a 20 mills tax levy for day-to-day operations.

In addition, three cities impose a property tax. Hampton approved raising its millage rate from 4 mills to 5.5 mills this year. McDonough similarly adopted an increase. They created a special district for public safety, imposing a 1 mill increase, back in January. Their general fund millage rate remains 3.033 mills. Finally, Stockbridge maintained its 3.770 millage rate from last year. The last city, Locust Grove, does not charge a city tax.

When considering all property taxes, property owners within three of the four cities will see a net reduction in their millage rate. The chart below shows the overall millage rate:

When to Expect Tax Bills

Tax Commissioner Michael Harris shared his office will finalize the tax bills in August. They will mail-out the bills no later than September 1. Property taxes are due by November 16. Commissioner Harris also mentioned residents can visit their website, HenryCountyTax.com, in September to view their tax bill. Finally, residents can contact his office with any questions.

Featured image shows the Henry County 2024 Taxes and their breakdown. Henry County photo.