DAPHNE, Ala.— Alabama Revenue Commissioner Tim Russell Thursday met with concerned homeowners at “Coffee with the Mayor” to discuss increasing property taxes and the effects of the national insurance crisis on Baldwin County residents.

Due to the recent sub-prime mortgage lending trends—which has led the federal government to loan $700 billion to support the fledgling banking industry—homeowners have experienced a disturbing trend of seeing their homes’ values decrease while property taxes continue to rise.

Still, Alabama homeowners pay considerably less property taxes compared to neighboring states, Russell said.

“We inherited a huge challenge in the state of Alabama,” he said. “Our property taxes are 51st in the country  (including the District of Columbia). If the tax level was doubled, we’d still be 51st.”

Alabama has a regressive tax system that limits the functionality of the state government, according to Russell.

One main reason is a long-standing tradition of state legislature favoring large landowners, especially agricultural interests.

“Large landowners have a hold on the state legislature and pay very little property taxes,” Starke Irvine, a commercial real estate developer, said. “It’s just not right.”

Russell, noting one benefit of higher taxes, or some other source of additional revenues, said, “Our school system needs the money.”

One solution, proposed by an audience member, is to institute a state-regulated lottery to fund education programs similar to Georgia’s Helping Outstanding Pupils Educationally scholarship.

Russell—clarifying he wasn’t speaking for Gov. Bob Riley, who opposes the idea—supports the institution of a lottery system.

The commissioner also shared the schedule for property tax releases.

“The first week in December, you’ll get a notice saying, ‘This is an evaluation of your property,’” he said. “The next week, you’ll get your bill.

“You’ll have 30 days to pay,” he continued. “Interest will accumulate after 30 days.”

Some attendees took issue with the schedule, noting that it sometimes takes four or five days for mail to reach its destination. Knowing employees may leave for holiday vacation a week before Christmas has residents weary of being stuck with paying interest or late fees.

Homeowners who disagree with tax bills they receive can appeal to the state.

Last year, 22,000 appeals were sent from Baldwin County—more than any other county in Alabama.  Russell expects the number to be even higher this year.