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Commissioners hear explanation of proposed homestead-focused sales tax and next steps for a referendum
Summary
At a June work session, Ware County officials heard a detailed explanation of a proposed local homestead-option sales tax (LHOST) that would be placed on the ballot and prioritized to reduce homestead property taxes; staff estimated roughly $5.7M to the county under prior collections and noted the tax runs 10 years if approved.
Commissioners at a Ware County work session on June 26 heard a presentation about a new local homestead-option sales tax (referred to in the meeting as LHOST) and discussed timing, revenue splits and voter approval steps.
Roger, a county presenter, said the measure would be a half-cent or one-cent local sales tax that must be placed before voters. "That one cent comes off their property taxes. Now the LHOST is for the homestead property taxes first," Roger said, adding that "if the sales tax taken covers everybody's homestead tax, there will be no taxes. They'll pay zero tax." He described the tax as prioritizing homestead exemptions first, then applying any remainder to other property-tax levies.
Roger told commissioners that last-year collections from the comparable local-option tax yielded roughly $5.7 million to the county after the state's 3% administrative fee, and that a full one-cent countywide rate could generate closer to $10 million annually split about 60/40 between county and city. Commissioners pressed on mechanics: whether the city and county both must approve placing it on a single referendum, how the split would be negotiated, and whether approval would alter homestead exemptions. Roger said the measure would be on a single joint referendum and that existing homestead exemptions and freezes would not be affected.
Commissioners and staff discussed timing. Roger advised the board that if they wanted the question on the ballot this year, the commission should coordinate with legislators or a special session to place it on the ballot; otherwise, the measure could be scheduled in a regular future election. He also noted that the law authorizes a 10-year term for the levy when enacted. The board heard that the state is also planning a roughly $500 per-property tax offset this year that would be passed through to local taxing entities.
Why it matters: Ware County officials said LHOST could materially reduce property-tax bills for homesteaded owners if voters approve it, but the measure requires coordination with the city for a joint referendum and explicit voter approval. Commissioners said they want more education for the public and coordination with city officials before deciding how to proceed.
Next steps: Commissioners asked staff to continue outreach and coordination with city officials and legislators and to return with details on timelines and ballot options.
