There are several questions on the ballot, and we want to be sure you have as much information as possible before you head to the polls. In this email, we are referring to “Ballot Question 1: Provides for a general law state-wide homestead exemption that may differentiate among political subdivisions.”
If HR 1022 is ratified by the voters this election, House Bill 581, introduced by Representative Shaw Blackmon of the146th district, will take effect. This bill aims to provide property tax relief and reform for Georgians through several key measures, including a statewide floating homestead exemption, an optional sales tax to offset property taxes, and reforms to the property tax process.
Statewide Floating Homestead Exemption: This will limit annual assessment increases on homesteaded properties to the rate of inflation. The inflation rate is set annually by the Georgia Department of Revenue based on the consumer price index. Home assessment increases will be capped at this rate, with any excess offset by the homestead exemption. If your property value increases, the value of your homestead exemption also rises (floats) to meet the increase, keeping your property tax bill stable and predictable.
This exemption can be used in addition to other non-base year value homestead exemptions. If another exemption exists locally, the more beneficial exemption for the homeowner will be applied. The base year assessed value for a home is initially set at the 2024 value and resets upon sale or substantial property change.
Key Provisions:
Optional Sales Tax for Property Tax Relief: A flexible optional 1% sales and use tax can be implemented by counties and municipalities that allow the floating homestead exemption. The proceeds from this tax can only be used for property tax relief. Implementation requires voter approval via a referendum.
Property Tax Assessment Notices: Currently, a local government is required to include an estimate of the current year’s tax based on the previous year’s millage rate. Should this pass, they instead must state the current year’s estimated roll-back rate.
Eligibility and Implementation: Counties and cities can qualify by implementing an ad valorem property tax exemption, such as the floating homestead exemption, and entering into an intergovernmental agreement to determine the distribution of proceeds. Parcels must be appraised at least once every three years. Property values can only receive a three-year lock if the value is reduced upon appeal.
Opt-Out Provision: Local governments may opt out of participating in the floating homestead exemption by passing a resolution and holding three public hearings by March 1, 2025.
If you have any questions about Ballot Question #1 or any other items on the ballot, please email , and we will be happy to help.
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