BRACK: How one city operates without property tax

Some people lament paying taxes. They don’t understand that taxes allow us to live in a more civilized manner, helping and protecting us all along.  That’s why I don’t mind paying reasonable taxes for the safety of everyday living.

Many don’t recognize it, but you are often paying a small tax without realizing it as you go about your everyday business….but it’s not called a tax.

It’s called a “fee.” Each time you pay your power or utility bill and cable bill, your insurance premium, when you rent a hotel room or car…and other ways…you are providing a few cents or dollars to help fund mostly local government.

The newly-minted City of Mulberry (and previously Peachtree Corners) will run its government without taxing property owners paying a tax to fund its operations.  How so?  Entirely from fees.  

Let’s visit what the other city without property taxes, Peachtree Corners, is doing. 

We talked with Cory Salley, who is the finance director for Peachtree Corners. He sent along a graphic which shows where Peachtree Corners gets its funding, as well as how it is spent.  (See graphic.)

For the most part, Peachtree Corners is funded by fees. The biggest comes from Georgia Power Company, paying $2.8 million in fees for the city for 2025. Other utilities include $450,000 from Atlanta Gas Light Company; $250,000 from Comcast; $70,000 from Direct TV; and $42,000 from AT&T.  (That last figure was interesting, in effect, showing how few people have land-line telephones anymore.) Altogether, utility fees brought in $4.3 million in Peachtree Corners for 2024.

Another bucket of fees include $3.8 million in insurance fees. This comes in one check from the Department of Revenue, which collects insurance fees for all cities.

Each business in Peachtree Corners pays an occupational business license tax. With lots of professional offices in the city, these businesses contribute $4.4 million to the city coffers.

Other fee collections for 2024:

• Alcoholic licenses and sales: $1 million.
• Zoning and land development permits: $1.4 million.
• SPLOST funds on sales within Peachtree Corners: $10 million.
• Automobile and vehicle purchases: $1.7 million.  This is interesting: no matter where you buy an automobile in Georgia, part of the sales tax reverts to the city where you live. 

Then there are other funds coming to the city; stormwater fees, grants, solid waste, etc. Altogether, it added up to approximately a $40 million income to run the city. 

Some specifics and the way they are figured: 

• Real estate transfer taxes: This tax is imposed at the rate of $1 on the first $1,000 and 10 cents on each additional $10 on any conveyance of real property when the value of the interest transferred exceeds $100.
• Distilled Spirits—up to 22 cents per liter on package sales and up to 3 percent of the sale price of a drink on sales to the public;
• Wine—up to 22 cents per liter; and
• Malt Beverages—up to $6.00 per bulk container (no more than 15.5 gallons) to be paid by the wholesaler and up to 5 cents per 12 ounces when sold in bottles, cans or other containers.
• A municipality may levy a business license tax on depository financial institutions (such as a bank.) The maximum rate of this tax is 0.25 percent.
• Hotel-motel tax: a municipality may levy a hotel-motel tax at a rate of 3 percent or less or at a rate of 5, 6, 7, or 8 percent. (Yes, let the out-of-towner pay!)

Perhaps this gives you an idea of how a city, like Mulberry in the future, can operate without property taxes.

Have a comment?  Send to: elliott@elliottbrack

Written by Elliott Brack

This material is presented with permission from Elliott Brack’s GwinnettForum, an online site published Tuesdays and Fridays. To become better informed about Gwinnett, subscribe (at no cost) at GwinnettForum.