House committee advances plan to shift homestead property-tax relief toward sales-tax funding; votes 14–5

Chairman Blackman presented a package of measures the committee advanced that would reduce assessed homestead values over a 10-year period and create a sales-tax–funded grant to backfill local revenue.

"We all have the goal of trying to reduce and in as much as many cases as possible, eliminate our homeowner property tax to provide tax relief," Blackman said as he outlined the resolution and enabling language. Under the proposal, assessable value for homestead property would decline by 75% over 10 years — from about 40% of appraised value toward 10% in increments — while a separate provision would provide a 100% homestead exemption for 100% disabled veterans.

Blackman said the enabling bill would funnel state sales-tax revenue — including revenues that will become available when certain data-center sales-tax exemptions expire — into a grant fund to help counties and school systems cover any gap created by lower property-tax receipts. "The exemption that sunsets in 2028 ... the revenue from the sales tax that would be collected is actually funneled into this grant fund," he said.

Local-government groups represented at the hearing described themselves as neutral pending review of final wording. "We're working to be in that neutral position," Larry Ramsey of ACCG said. Jim Thornton of the Georgia Municipal Association echoed the need for more analysis, noting the state's 536 cities vary widely in size and revenue structures.

Committee members asked detailed questions about how the sales-tax backfill would work and whether counties that lack data centers would be disadvantaged. Representative Parsons and others pressed the sponsor on whether the proposal specifically defines "high-technology data centers" and how localities could adjust if expected sales-tax receipts did not materialize. Blackman said the substitute removes some earlier provisions on assessments, that the enabling bill provides implementation detail, and that the proposal offers local flexibility for managing shortfalls.

The resolution (HR1114) was moved and approved by a show-of-hands vote announced as 14–5. The companion enabling bill (HB1116) received a similar favorable recommendation, also announced at 14–5. The sponsor said the resolution will be reported to the House floor the next day for further consideration.

What happens next: Both measures now proceed out of committee; the resolution and enabling language will be circulated as required and are expected to be considered on the House floor. The committee said updated drafts and committee-passed versions would be made available online and in the Ways and Means Committee room for members and stakeholders.