Walker County residents could see $2.5 million increase in property taxes

Walker County, Ga., Commissioner Shannon Whitfield is looking for about $2.5 million extra from property owners this year.

Whitfield, who took office in January after a campaign built on helping the local government climb out of debt, announced a proposed tax increase for his first budget Wednesday morning. Overall, he will raise about 22 percent more money in property taxes this year, with the exact rate varying based on whether a resident lives in an incorporated part of the county.

For a house worth $100,000 in the incorporated part of the county, a homeowner would pay an extra $83.18 this year - assuming they receive the standard homestead exemption. For the same house in an unincorporated part of the county, a homeowner would pay an extra $76.

Last month, an audit showed the county with about $70 million in debt through September 2016. Meanwhile, the current county budget raises only about $23.1 million - with no savings for a rainy-day fund.

"If we don't change course," Whitfield said in a statement, "it will take us decades to pay off these obligations, burdening our children and grandchildren with the missteps of the past."

Whitfield will hold three public hearings this month for residents to weigh in on the proposed tax hike: Aug. 16 at 6:30 p.m. at the LaFayette-Walker County Public Library, Aug. 19 at 10 a.m. at the Walker County Civic Center in Rock Spring and Aug. 24 at 6:30 p.m. at the Walker County commissioner's office in LaFayette.

This will be the third time in four years that property taxes have increased in Walker County. In 2014, Commissioner Bebe Heiskell increased her revenue by 54 percent. In 2015, she did it again, that time by 8.3 percent.

Last year, in the middle of an election, Heiskell rolled back taxes by 4 percent. But Whitfield argued that was not sustainable: Bills to the county were simply too high.

Since he took office, Whitfield has taken out $8 million in loans to pay county expenses, such as employee payroll and utility bills. He said he likely will need similar loans for the next four years, though he hopes to decrease the amount borrowed over time.

Wednesday's announcement was the first confirmation that Whitfield would, indeed, increase property taxes. But he has hinted at the hike several times this year.

On July 13, after the U.S. Court of Appeals ruled that Walker County was still on the hook for an $8.7 million payment to Erlanger, Whitfield said he would "definitely" have to consider raising property taxes. A week later, when the audit came out reflecting the county's total debt, he said "it appears" he would need to raise taxes.

Whitfield also has floated the idea of adding a sales tax referendum on the ballot. If approved by voters, the county could charge an extra 1 percent at the cash registers, with the money dedicated to transportation projects. Right now, only one county in the state charges such a tax. But Dade County voters will consider a sales tax referendum this year.

"It would be one of the best things for our [local government]," Dade County Executive Ted Rumley said in June, "as far as roads go."

Contact staff writer Tyler Jett at 423-757-6476 or tjett@timesfreepress.com. Follow him on Twitter @LetsJett.