MOULTRIE — Georgia’s cities and counties, faced with a state freeze on reimbursements for a property tax exemption, must decide whether to grant the tax relief in hopes of receiving the money later or bill taxpayers for the extra amount this year.

In Colquitt County, the loss of the exemption would mean that homeowners in incorporated areas who had received the exemption in the past would pay an extra $211.24 this year, with Norman Park residents seeing the largest increase at $336.36, Tax Commissioner Cindy Harvin said.

If state lawmakers do not fund the reimbursement, it also would mean increases for homeowners of $291.60 in Moultrie, $261.32 in Doerun, $287.64 in Doerun, $306.28 in Ellenton, and $229.16 in Funston and Riverside.

Harvin told commissioners Tuesday that the homestead tax relief grant credits, which reimbursed cities and counties for the state exemption, has been put on hold. The county received a reimbursement of $1.8 million in 2007.

The program, which became law in 1999, was implemented in increments, and had reached an exemption of up to $8,000 in value on a home in which the owner resided, she said.

Bert Brantley, press secretary for Gov. Sonny Perdue, said Wednesday that the governor met last week with legislators to discuss ways to deal with declining sales tax receipts and a projected budget shortfall.

Perdue initiated an immediate cut to all state agencies of 6 percent with the exception of education and Medicaid, which would see cuts of 2 percent and 5 percent, respectively.

In addition, the homestead exemption is on hold pending an analysis next year of the state revenues, he said.

The final budget for fiscal year 2009, which began July 1, was $21.18 billion, and projections are that revenues will fall $1.6 billion short due to the economic downturn, Brantley said.

“It’s a tough time,” he said. “I think everybody understands the economy is softening. That’s resulted in fewer revenues for the state. The fact we are tightening our belts and living within our means is certainly understandable.”

Eliminating the state exemption would save the state government $400 million, according to the Association County Commissioners of Georgia.

In a memorandum sent to elected officials Wednesday, the group recommended that government entities not bill taxpayers for the exemption amounts because legislators have indicated they plan to fund the program.

“If you exclude the credit and the state honors the reimbursement, your homeowners will have lost the tax savings,” the memorandum said. “Furthermore, county commissioners will have a difficult time explaining to the homeowner why their credit was removed from their tax bill when the Legislature had not removed the funding for this program.”

If lawmakers are unable to reimburse governments, counties will be forced to make up the difference themselves or bill taxpayers later.

“Billing homeowners in 2009 for a credit that they receive and paid on their 2008 property tax bill will surely cause a great deal of confusion and administrative hassle,” the memorandum said.