(The Center Square) – The Georgia Senate passed a bill that caps city and county property tax growth at 3% or the rate of inflation, whichever is greater.
Lawmakers said House Bill 1116 was needed as property taxes increased.
“We’ve had property tax increases in a five-year period of 70, 84 and 92 and 107%,” said Rome Republican Chuck Hufstetler. “Our citizens, who have to live within their means, are frustrated, with no choice but to see their taxes increase by double digits.”
The bill would allow cities and counties to implement a sales tax to recoup property tax revenue, said Rome Republican Chuck Hufstetler, who presented the bill.
“Under this method, the sales tax revenue would go to the homeowners first,” Hufstetler said. “Just about every city and county would eliminate their homeowner property taxes. A few, such as Fulton, would only eliminate 91% of their homeowner property taxes. I say only 91% but that is still a big improvement.”
The sales tax is not new – it is allowed under law, Hufstetler said.
Sen. Josh McLaurin, D-Atlanta, disagreed.
“I want you to imagine going to somebody in line at Kroger or Publix or Piggly Wiggly and saying, ‘Don’t worry, this isn’t a new sales tax that you’re paying, that extra 1% because the state already had the authority to do it,"” McLaurin said. “I don’t think a voter would like that argument. A 1% tax is a 1% tax. This is a new consumption tax.”
Atlanta Democrat Sonya Halpern said the bill doesn’t offer tax relief.
“It doesn’t eliminate costs, it moves them,” Halpern said. “It moves them from property taxes to what will be sales taxes, from what you own to what you spend.”
Sen. John Albers, R-Roswell, said lawmakers are just asking local governments to do what the state has done for the past 26 years.
“The state budget, in the last 26 years, since the year 2000, when you adjust for the increase in population and inflation is up a net total of $108,” Albers said.
The bill returns to the House for approval on Thursday, the final day of the session.