Augusta’s Tax Discount Costs Local Coffers

Augusta, GA—It’s like money in the bank for Mary Schorsch. She was paying her Augusta property tax bill early, saving one percent of the total. “Well I appreciate the discount, though it is just one percent but every little penny counts when you are paying your taxes,” she said at the tax office.

The Richmond County Tax Commissioner’s Office offers a one percent discount on tax bills for those who pay before September 3rd. The discount may please taxpayers, but it creates more work for the tax office.

Hundreds of taxpayers have already mailed in their bills, but instead of taking the discount they paid the full amount. The tax office does not take the windfall, it sends checks back to the taxpayers to make up the difference.

“We are we’re sending back money we’re sending back money everyday we’ve got a couple hundred back there right now,” said Tax Commissioner Steven Kendrick.

The discount may save taxpayers money, but it costs local governments.

“In 2008, it cost the city about 280 thousand dollars,” said Ryan Barbin, the tax office’s Finance Manager.

The tax office also collects for the Richmond County Board of Education. And though Augusta’s schools are facing deep cuts, the discount is taking dollars away from the school system.

“The $280,000 is just for the county alone, the School Board is about $430,000,” said Barbin.

Taxpayers save, but local governments suffer, so is this discount really worth it?

“I guess they might have to get rid of it next year it really isn’t that much of a discount and I don’t know how many people take advantage of it,” said Schorsch.

It’s Augusta being generous for those who take care of their tax bills early. But, in tough times, is it being generous to a fault?