Steve Gooch on Georgia HB581, How It Controls Property Tax Increases

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In GA we had constitutional amendments on our ballot in GA. HB581, it overwhelmingly passed by the will of the people. Now your counties have the opportunity to opt-out.
Property owners have been seeing an increase in their mortgage payments over the past 10 years. Local governments across the state have been required by law, if there is a reassessment they are required to roll back the millage rate. But many are keeping the millage rates the same resulting in that increase of 20-50% if they don’t roll back the millage rate. The local governments have to have 3 public workshops if they are raising the millage rate alerting the people of the changes. So with the increase in property assessments and not changing the millage rate the counties and local governments are seeing enormous increases, called a back door tax increase. The General Assembly said enough is enough so they developed HB581. They have seen local governments use the increased income for administrative and pet projects and not whole community programs. Some areas have had a 50% increase over the last 3 years. Some counties have special tax for seniors and others but the general assembly wanted a program for every homeowner. Citizens of GA are saying that they cannot live in GA anymore because of the property tax and increased insurance costs. The reason it had to be a constitutional amendment is because the property assessment is a statewide “uniformity clause” and to change it had to be an amendment. This bill is intended to be a property tax relief for all citizens. It developed a “Float” Homestead Exemption. It does not remove any current revenues, only controls values going forward. Assessments can not go higher year over year than the previous year’s CPI. This will prevent the huge increases we have seen in the last several years.
Many of the board of educations are choosing to opt-out because they are going by the direction of the GA School Board Association that instructed them to opt-out. They are telling the BOE that they will be forced to raise the millage rate which is not what they want to do if they don’t opt-out.
The bill also produces a new tax option called FLOST (Float Local Option Sales Tax); it was added to the bill by the House. It is a tool that can be used to further reduce the tax burden up to one penny that can be used in place of a TSPLOST. It is a direct rollback of the millage rate, $for$.
What the Senate Big Ticket items that we will see in the upcoming legislative session. On Day 1, they will tackle the storm damage areas in South GA from Hurricane Helene. Thousands of acres for timber is on the ground. The areas need funds to clean up, the state will offer to the local governments assistance $100M in a grant or loan program. Kemp will have the State of the State address next Thursday. Expect him to talk about lowering the state income tax and the budget surplus. $1B refund to taxpayers. He will talk about how the surplus will be used to address infrastructure, roads, bridges and freight around the state. Expect tort reform from the legislature to level the playing field in civil cases. GA is the worst state in the country for injustice. We have runaway juries that are giving verdicts that are over the top and are running up our insurance costs statewide. Transgender issues will be handled once and for all, keeping it out of public schools and universities. And to streamline the SOS process in issuing licenses for a trade.