Harris County commission asks state to authorize homestead sales-tax option; question to appear on Nov. 3 ballot

Harris County commissioners voted June 8 to ask the county’s legislative delegation to introduce a local act enabling a local homestead option sales tax (LHOST) and to place a five-year version of the measure on the Nov. 3, 2026 general-election ballot.

The board’s motion, adopted by a show-of-hands vote, directs the delegation to seek local legislation and asks legislative counsel to leave the LHOST effective date flexible so the county can begin collections earlier if state law is amended. The draft resolution modifies a sample local act from the Association County Commissioners of Georgia (ACCG) to limit the LHOST collection period to five years instead of the sample’s 10-year maximum.

Why it matters: Presenters told commissioners that a 1% sales tax would generate an estimated $4.2 million annually for Harris County and that the county must choose how to use that revenue to reduce property-tax burdens. Under LHOST, proceeds fund homestead exemptions and appear on property tax bills as a credit; under a countywide "floss" the reduction would be applied across all property classes through a roll-back calculation, and city shares would be negotiated by intergovernmental agreement.

At the meeting, tax assessor Shalley Mallerie gave parcel counts that the board used for illustrative math: roughly 22,000 parcels countywide and about 10,344 homesteads in the unincorporated county. Using the staff estimate of $4.2 million from a 1% sales tax, presenters showed approximate per-parcel examples (about $190 under a floss spread across all parcels; about $400 as a homestead credit under the LHOST illustration), while cautioning the figures are approximate and can fluctuate year to year.

Senator Randy Robertson, attending the meeting, said the legislature had made tools available—including LHOST (authorized in Senate Bill 33)—and that counties must decide whether to pursue a homestead-targeted exemption or a broader sales-tax approach. He noted the governor had expanded a special legislative session in mid-June, which could allow the local delegation to act sooner than the current default effective date, which would make LHOST collections start in 2028 unless the legislature changes the law.

Commissioners aired competing concerns. Supporters of floss argued it distributes relief across all property owners, which they said would help renters and owners of multiple parcels and could be easier to sell politically. Supporters of LHOST argued it better targets homeowners, especially those on fixed incomes, and directly reduces homestead tax bills. Commissioners also discussed municipal revenue shares and the need to negotiate intergovernmental agreements if the county pursues floss.

County attorneys and staff advised the board that state statute permits LHOST collection periods up to 10 years but that the commission may propose a shorter term on the ballot; the draft resolution presented to the board specified five years. Staff also noted that holding the referendum on the November 2026 general-election ballot would avoid the cost of a separate special election.

The board’s formal action will ask the county delegation to introduce the local act. If the delegation files the local legislation and the measure is approved by voters, the county would implement the tax and the corresponding homestead exemption (or roll-back, if floss were later selected and implemented) according to the final language of the law and any agreements with municipalities. The county will work with legislative counsel to confirm effective-date language and other details before filing.

The commission adjourned after the vote.