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Lowndes County commissioners approve submission of proposed local homestead-option sales tax bill
Summary
The board voted to submit draft local legislation under Senate Bill 33 to the county’s legislative delegation proposing a homestead-option sales tax (LHOS) to exempt homesteads from a one-cent local sales tax; staff recommended a fall referendum and possible collections starting Jan. 1, 2027.
Lowndes County commissioners voted unanimously to submit a draft local act under Senate Bill 33 that would create a local homestead-option sales tax (LHOS) designed to exempt homesteads from a one-cent local sales tax.
County manager Paige Dukes told the board the mechanism would not be a millage rollback but an exemption funded by one penny of special-purpose local option sales tax collections. Dukes said staff recommended sending the draft to the county delegation so legislative counsel can prepare bill language for the governor’s special session; commissioners instructed staff to proceed.
Why it matters: Dukes said a single penny of special-purpose local option sales tax in Lowndes County produces about $36 million annually; staff estimates roughly half that amount would be needed to fund homestead exemptions for the county’s homestead digest and related millages, with the remainder applying to non‑homestead parcels. She framed the measure as a way to shift part of the property‑tax burden from homeowners to the broader sales‑tax base, noting more than 51% of sales tax receipts come from nonresidents and pass‑through traffic.
Dukes reviewed recent local tax changes: the county’s general homestead exemption was doubled from $6,000 to $12,000 and the school exemption for unincorporated areas was increased, while senior exemptions were expanded to $40,000 for 65+ and $50,000 for 70+. She said the draft act requests that a referendum be placed on the fall ballot so collections could begin Jan. 1, 2027 (the draft also preserved a Jan. 1, 2028 option at the legislature’s discretion).
Following the presentation the board moved and seconded the motion to forward the draft to the local delegation; Chair called the vote and commissioners approved the submission.
Next steps: Staff will transmit the draft to Representative John Leood and legislative counsel to prepare formal bill language for consideration in the governor’s special session. If the General Assembly adopts the local act, the county would still need voter approval at a local referendum before collections and exemptions take effect.
