Fort Oglethorpe homeowners age 70 and older or 100 percent disabled could get a big discount on their city property taxes if voters approve a homestead exemption on the Nov. 4 ballot, city officials said.

While city officials said the tax break would be good for older residents, they said it could be rough on the city’s budget.

“This could be a killer for Fort Oglethorpe,” interim City Manager Ron Goulart said about the exemption that was proposed under the administration of former Mayor Judd Burkhart.

The proposal, modeled somewhat after the state homestead exemption act, actually has two property tax breaks — a $10,000 exemption for residents 60 and older and a $40,000 exemption for residents 70 and older.

Councilman Louis Hamm was on the council when it approved holding the referendum.

“A lot of elderly people, they need these tax breaks,” Mr. Hamm said. “But, like the city manager said, how far can we go without hurting the budget?”

He said he’s not taking a position on the referendum and sees the advantages and the disadvantages.

Mr. Goulart said he thinks the tax cuts should be based upon income rather than age alone.

“We provide a lot of services, and we have to pay for those services,” he said. “Just paying for garbage pickup, it would cost about $200 per household a year.”

Like many Fort Oglethorpe voters, Forrest Road resident Kathy Lindsey said she was not aware of the referendum.

“It sounds like a good idea to me,” said Ms. Lindsey, who declined to give her age. “I think it would help older folks.”

Asked about Mr. Goulart’s suggestion the tax break be based on income, Ms. Lindsey said, “There’s more poor folks than there are rich folks.”

Mr. Goulart said the question will be a two-edged sword for voters.

“If younger people vote for it, they are voting to increase their tax burden. If the older people were to vote against, they are cutting themselves out of a benefit,” the city manager said.

If the referendum passes, residents ages 60 to 69 could take $10,000 off the assessed value of their home before figuring the city tax bill. For those 70 and older, or 100 percent disabled, the assessed value minus $40,000 is where they would start on figuring how much city taxes are owed.

The proposed tax break is similar to the state homestead tax exemption.

State lawmakers earlier this year debated tax legislation aimed at eliminating property taxes and replacing the lost revenue with sales taxes on items now exempt — from food to legal fees to haircuts. A tax overhaul was never successful negotiated.

Now the state is suffering from sluggish tax collections that have officials planning budget cuts to try to make up a nearly $2 billion shortfall in projected revenue. The fiscal pain is being spread around, with some of the cuts including revenue that would be coming to the cities.

So, it’s a tough time to be talking tax cuts, and Mr. Goulart urged those who will make up the loss to think before voting.

“Is it equitable for the people who are young homeowners to have to shoulder more of the tax burden?” he asked.

He said tax breaks for the indigent are understandable, but for those who can afford it: “They should pay something because it costs a lot of money for trash pickup, street maintenance and other services.”

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