Property tax cap bill clears Georgia Senate
Scattered applause broke out in the state Senate chamber last Thursday following passage of a property tax relief bill titled Save Our Homes.
“A green (yes) vote for the bill is a vote for every homeowner in Georgia,” Majority Leader Steve Gooch of Dahlonega said moments before lawmakers began the tally, which came in at 42 to 7.
The main thrust of Senate Bill 349, sponsored by Sen. Chuck Hufstetler, R-Rome, is to limit property tax increases to no more than 3% a year. It also streamlines the valuation and appeals processes.
“This will get rid of a lot of bureaucracy and let many people stay in their homes, knowing they won’t get a massive tax increase,” Hufstetler said in presenting the bill.
If it passes the House and is signed into law by Gov. Brian Kemp, it would set up a statewide vote. The cap would only apply to residences, not business properties.
Lt. Gov. Burt Jones said it’s his tax reform priority and is aimed at addressing longstanding issues with local property taxes. A number of counties have similar measures in place, and that part of the legislation won’t affect them. Some cities and counties do have homestead freezes, but they typically don’t apply to school taxes as SB 349 would.
Hufstetler noted that school taxes can make up 75% of a homeowner’s property tax bill and a number of districts have seen revenue rise — by as much as 47% — in the past two years without a millage rate hike.
People would continue to get notices of increased property values, he said, but they would know their bill couldn’t go up by more than 3% unless a city, county or school system raises their tax rate.
“If they raise taxes now, it will be by the front door, not the back door,” he said.
The Association County Commissions of Georgia board unanimously voted to support the bill, which Hufstetler said was negotiated with local entities last year. However there are some opponents, and the Georgia School Boards Association expressed concern in an earlier hearing.
Sen. Nikki Merritt, D-Grayson, noted that Gwinnett County had local legislation passed to enact a homestead exemption, and this cap would come on top of that. She also said the measure would tie school boards’ hands on spending, including raising pay rates at a time when there’s a teacher shortage. State law limits school taxes to no more than 20 mills, with a few exceptions.
“I know there’s some concern that (school boards) are inflating their losses, but this is best handled locally,” Merritt said.
However, Hufstetler said Gwinnett’s $4,000 exemption only amounts to a savings of about $48. And, he added, its school tax revenue increased 40.5% in two years while the millage rate stayed the same.
“It would seem if you are seeing a 40.5% increase in tax dollars coming in, you could roll back the millage rate,” he said.
If the measure clears its other hurdles, the proposed 3% cap on property tax increases would be on the ballot in November.