The Georgia House has agreed to changes made in the Senate on a measure designed to provide property tax relief using surplus government funds.
The bill allows Georgia counties and cities to create local programs that give property tax credits to homeowners through incentive adjustment programs, but only if local governments place the matter on the ballot and then voters approve it.
House Bill 439 was approved Wednesday and now heads to the Governor’s desk for signature. The agreement follows a tangled road to compromise on how lawmakers sought to address ever-increasing property assessments.
Specifically, the bill would provide for the following:
- Create dedicated grant funds that can be used to offset ad valorem taxes on primary residences
- City and county officials would first have to place the matter on the ballot for voters to approve via a referendum.
- Placing the issue on the ballot is not required in the bill and would be at the sole discretion of the local governing authority.
- Local governments would put surplus funds in the grant fund when revenue exceeds budgeted appropriations for the year AND if projected revenues for the upcoming year are at least equal to those prior fiscal year collections.
- Credits would be calculated based on the potential tax liability on eligible homesteaded properties and the money available in the grant fund.
- Credits would be dollar-for-dollar, but cannot exceed the homeowner’s tax liability.
- The credits would be clearly outlined on tax bills.
- If a county or city erroneously provides a credit in error, they can recover the taxes in the same manner as delinquent taxes.
- Credits could not be applied to school taxes or bonded indebtedness.
- If a program is never implemented or later discontinued, any remaining funds revert back to the general fund.
- Only voters could decide if the grant program could be terminated via another referendum
If signed by the Governor, the measure would take effect January 1, 2027. Any collections earned would be placed in the fund beginning the following fiscal year after the measure is approved by voters.
Georgia House members agreed to the Senate substitute to the bill in a 99-64 vote Wednesday.
