ATLANTA (AP) — Georgia voters said in November they wanted property tax relief, but many local governments retain the authority to raise taxes despite a statewide vote.
Now, state lawmakers are trying to agree to push local governments to rethink and limit how much taxable the increase in home value can be.
From 2018 to 2023, the total valuation of property across Georgia increased by nearly 61%. Georgia Department of Revenue. Value rose so quickly that most local governments pocketed revenue growth even if they lower their tax rates, and statewide property tax collection rose 44% from 2018 to 2023.
Chuck Hofstetler, chairman of the Senate Treasury Committee for Roman Republicans, calls it a “backdoor tax hike.”
Amid a fuss over the tax bill, lawmakers voted in November to revise the state’s constitution, limiting the amount that could convert a rise in home values into a higher property tax. State politicians instead wanted to index the taxable value of real estate into a broader inflation rate each year.
Almost 63% of Georgia voters supported the cap, making eight of eight people one of the eight who decided to take property tax measures in November. It will affect national politics.
However, Georgia’s plan gave local governments a one-time chance to escape restrictions if they acted by March 1, and they exercised that right with that right. Almost two-thirds of the state’s 180 school districts have opted out, accounting for 75% of Georgia’s 1.75 million students statewide. So did one-quarter of 159 counties in Georgia and 20% of more than 500 cities.
Local officials cited the rise in their own costs, saying the tax cap could force them to waive any income they may need in the future. Gwinnett County officials, Georgia’s largest school district and with 183,000 students, predict that CAP could cut $35 million a year.
Hufstetler and other Republicans are unhappy with so many governments opting out and want them to change their minds. Some lawmakers are trying to force local governments in their districts to accept the cap. At least 12 bills are underway at the Capitol, setting up a local referendum that can require local governments to follow the cap.
On Tuesday, the senator tried something like persuasion. The senator voted 52-2 for House Bill 92. This gives the government another opportunity to agree to the limits. This measure will return home for further discussion.
Local governments that have left may change their minds until March 1, 2029 and agree to the tax cap. Meanwhile, these governments must print out notices about tax bills that encourage citizens to call if they have concerns.
As a concession, the bill exempts the district from not having to pay sales tax on construction materials if it agrees to the CAP.
“We continue to give them the opportunity to look back, especially in a few years from now, when they can look back and see how minimal it is,” Hufstetler said after the vote. “Even so, it protects the homeowners.”
The bill passed Tuesday will force some local governments to vote again in 2027, ending the cap and holding another public meeting. Governments that fail to complete the measures will be permanently placed under the cap.
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