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Senate panel advances sweeping property-tax overhaul to prioritize homeowner relief and cap revenue growth
Summary
A Senate Appropriations subcommittee reviewed and advanced large tax-reform language in HB 1116 that would convert some local sales taxes into a homestead-first credit, add a 3% or CPI revenue cap, require enhanced taxpayer notices and new referendum timing; local officials urged revisions to distribution formulas and carve-outs for emergencies.
Chairman Blackman said the committee would consider House Bill 1116, the "Homeownership Opportunity Equalization Act of 2026," a multi-part package aimed at reducing homeowner property-tax burdens and changing how some local sales taxes are used.
"We've all heard from constituents the unsustainable path that property tax is on and the burden that it is on our homeowners," Chairman Blackman said, urging the committee to consider options that provide predictability and relief.
The proposal consolidates several changes into one bill. Key provisions presented by the sponsor include converting certain local-option sales taxes (LOST) into an LHOST/ELHOST mechanism that would apply revenue first to homestead property-tax credits, clarifying state and local sales-tax caps, creating a 3%-or-CPI ad valorem revenue cap for local governments (with limited exceptions), requiring enhanced mailed notice to parcel owners where a tax increase is proposed, and allowing twice-yearly local referendums on sales-tax questions.
Proponents and stakeholders framed the bill as a major step toward homeowner relief. Tony West of Americans for Prosperity told the committee the reforms "will provide a sustainable solution to Georgia's property tax burden by promoting transparency and helping all of us be more informed and engaged citizens regarding these local property tax decisions."
Local-government representatives urged more detail and firmer guardrails. Clint Mueller of the County Commissioners Association said the draft leaves open important implementation questions, including how LHOST funds should be split among counties and cities and whether the distribution should track homestead tax burdens rather than historic LOST shares. "One thing we'd like y'all to consider is maybe we should split this money more in line with how much homestead property taxes each jurisdiction has," Mueller said, arguing that a pro rata split by homestead liability would reduce the risk of uneven outcomes.
The Georgia Municipal Association also cautioned that converting long-standing LOST agreements to LHOST could be disruptive because many cities have budgets and intergovernmental agreements built around existing LOST splits. Jim Thornton of GMA suggested less-disruptive paths, including wider use of new FLOST options or local referenda to convert an existing FLOST to an LHOST mechanism, and urged carve-outs for court-ordered or emergency spending so municipalities can meet legally mandated obligations without breaching caps.
Committee members pursued technical clarifications: whether credits should be applied as a dollar-for-dollar offset on tax bills (rather than changing millage rates), how the constitutional homestead assessed-value cap (discussed in testimony as $18,000 of assessed value) would interact with the new fund, and whether bond pledges or consent decrees require express exceptions. Several members asked staff for legal guidance on uniformity and on whether multiple layers of relief (city, county, state) could stack under the constitution.
The committee did not take final action on HB 1116 at this meeting. Members requested additional drafting and a short one-page summary for distribution to local officials before the next session. The hearing record shows broad interest and major unresolved implementation details; proponents urged continuing work with cities and counties to minimize disruption before any final vote.
