Georgia lawmakers consider bill on capping property taxes

New proposal seeks relief for Georgia homeowners

Georgia lawmakers are debating House Bill 1116, a proposal that would cap annual property tax increases at 3% to protect homeowners from rising costs.

ATLANTA - Georgia homeowners could soon see a limit on their tax bills as state lawmakers debate a new proposal to cap property tax hikes.

What we know:

State Rep. Shaw Blackmon (R- Bonaire) introduced House Bill 1116 to protect Georgia property taxpayers from drastic increases. 

The proposal would cap property tax hikes at 3% per year or the current rate of inflation, depending on which is higher. 

Blackmon, who chairs the House Ways and Means Committee, says the bill also aims to create a new local homestead option sales tax to provide relief to homeowners sooner rather than later.

What we don't know:

It is currently unclear how many municipalities would be forced to implement the new local homestead option sales tax to offset potential losses. 

Additionally, the specific impact on individual county budgets across Georgia has not yet been fully calculated.

What they're saying:

Supporters believe the cap is necessary for housing stability. 

"It would prevent the kind of increases that we’ve seen in recent years and that are forcing people to make some really tough decisions and some to have to move out of their homes," Blackmon said.

The other side:

However, local leaders like Decatur City Manager Andrea Arnold worry the cap will hamstring local governments. 

"It will limit the ability for our city to generate revenue," Arnold said. 

She warned that residents might see slower 911 response times and crumbling infrastructure.

"Community members will see those services downgraded. The sidewalks, it would be the police cars, it would be the public works vehicles," she added. 

What's next:

The bill has moved through the House and is now under consideration in the Georgia State Senate. 

If passed, local governments would have to adjust their budgeting processes to comply with the more moderate rate of tax increases.

Local perspective:

For Atlanta and metro-area residents, this bill could mean more predictable housing costs but potentially fewer resources for city-led projects. 

Arnold noted that a city's credit could also be downgraded if revenue is restricted, which she says would ultimately end up costing taxpayers more in the long run.