Senate passes bill to slow property tax increases

To provide relief to homeowners from rising property taxes, the Georgia Senate recently approved a bill that would slow property tax increases. Georgia’s property tax break limits home value increases (for tax purposes) to a maximum of 3%. It’s unclear at this time whether the House will approve the bill because there are different plans to cut property taxes.

Property Tax Relief in Georgia: What is it?

Last week, the Senate voted 42 to 7 to pass Senate Bill 349, officially called the Save Our Homes Act. The bill would limit increases in assessed home values ​​for property tax purposes to 3 percent per year. This limit will remain in place as long as the homeowner maintains the homestead exemption.

Specifically, the bill changes the disclosure provisions regarding local governments’ plans to increase property taxes. It also changes the process for appealing a tax assessor’s assessment of property for tax purposes.

“Senate Bill 349 limits property tax increases each year, reforms the appeals process, and increases transparency in the tax process,” Lieutenant Governor Burt Jones said in a statement.

SB349 also seeks to change the information required for annual notification of a homeowner’s current assessment and to change the assessment settlement conference process.

Property tax collections in Georgia increased 41% from 2018 to 2022, but total assessed property values ​​increased about 39% during the same period. This number includes new as well as existing buildings. So it’s not exactly clear how much the value of existing homes has risen.

Save Our Homes Act: Will it become law?

Although the Senate has approved the Save Our Homes Act, it will be interesting to see if this property tax relief gets the same treatment in the House, which has other property tax reduction plans.

Earlier this month, the House voted in favor of a bill that would increase the statewide farm tax exemption from its current $2,000 to $4,000. If approved, this bill could help some homeowners save $100 a year on their tax bills. However, the bill would not apply to counties that already have a local farm tax exemption.

The Association of County Commissioners of Georgia supports a Senate bill proposing property tax cuts in Georgia, but the Georgia School Board Association opposes it, saying such decisions should be made locally. .

Many have also raised concerns about how the Senate’s property tax cuts could affect school district budgets. School taxes account for the largest portion of most taxpayers’ property tax bills.

Like many other states, rising property taxes have been a concern for Georgia homeowners. Many states, including Texas, Kansas, Colorado, and Pennsylvania, have proposed or are preparing legislation to address rising property taxes.

Now, it’s likely that Georgia will come up with a relief package as well, but it will be interesting to see whether it will be an initiative from the Senate or House of Representatives, or whether it will be a compromise between both.