Proposed bill could eliminate primary property taxes in 100 counties

ATLANTA - Georgia lawmakers are fast-tracking a controversial tax swap proposal that could drastically alter homeowner obligations by reducing property tax bills in exchange for a slight increase in local sales taxes. 

What we know:

Under the proposal being debated during a legislative special session, municipalities could choose to raise their local sales tax by a single penny on the dollar. 

Proponents state that over 100 Georgia counties and the cities within them could collect enough revenue from that extra penny to fully eliminate or deeply slash property taxes on a resident's primary home.

The relief plan directly ties into a separate state law that caps home assessment increases at the steady rate of inflation to shield property owners from volatile real estate market spikes. 

If passed by state lawmakers, the measure would go before voters for local approval. The earliest homeowners would see the corresponding cuts to their property tax bills is 2028.

Dig deeper:

The lightning-speed progression of the bill has triggered an intense policy debate under the Gold Dome, as not everyone is on board with a tax swap. Democratic State Sen. Kim Jackson of Stone Mountain stands as a vocal opponent of the strategy, arguing that raising sales taxes penalizes families who are already struggling with everyday living costs. 

What they're saying:

"What the majority party is asking us to do is to take money from everybody who’s going to buy groceries and gas and just general goods," Jackson said. "Adding a tax to that while relieving that for property owners. It’s regressive in a time and season for affordability. This is not the right move."

While almost every lawmaker acknowledges the widespread public desire for property tax relief, the ultimate point of contention remains how the General Assembly should fairly distribute the state's tax burden.

What we don't know:

State financial analysts have not yet confirmed the exact language that would appear on local ballots or provided localized projections on how much an average consumer's annual retail shopping expenses would rise. It also remains unverified how many municipal districts plan to fully utilize the sales tax option if the broader enabling legislation passes. 

What's next:

The intense legislative session is scheduled to resume on Saturday, where lawmakers expect to sort through a massive volume of unanswered questions. Homeowners, consumers, and local civic leaders across Georgia will continue to watch the Gold Dome closely as the special session moves toward a final vote. 

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