The Georgia Senate has passed a bill that will reduce homeowner property taxes by creating a new sales tax.
WABE reports the Senate’s measure was amended on House Bill 1116, which proposed a cap on property tax valuation increases. The Senate’s proposal creates special taxing districts overlayed on county lines that can implement a 1% sales tax. The revenue from the sales tax would enable a reduction of homeowner property taxes.
The bill also prohibits revenue increases from property taxes of more than 3% or the federal Consumer Price Index, whichever is greater.
“Just about every city and county would eliminate their homeowner property taxes,” said Sen. Chuck Hufstetler (R-Rome), who presented the bill on the Senate floor.
Hufstetler added that properties without a homestead exemption would also benefit from this proposal, noting that “the rest of city and county taxes would be eliminated in some counties and reduced in other counties.”
The bill passed in a party-line 31-19 vote, with Senate Democrats criticizing the measure by arguing a hike in sales taxes would negatively impact lower-income people while preventing renters from enjoying a tax deduction.
“We are choosing to say that the people who own homes really are more important,” said Sen. Sonya Halpern (D-Atlanta).
The amended bill returns to the House for its approval.
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