Rome City Commission votes to put 1-cent local homestead option sales tax before voters

The Rome City Commission voted on June 15 to place a proposed 1-cent local homestead option sales tax (LHOST) on the November ballot, a measure city officials say is designed to offset homestead property taxes rather than add net new revenue for local governments.

Mayor Pro Tem outlined the policy and its statutory basis, citing earlier measures including House Bill 581 and Senate Bill 33 (the Home Ownership Opportunity and Market Equalization Act of 2026). He said the tax would be collected as a net new penny and that state law requires proceeds from the local option be applied first to replace homestead property-tax revenue. "The law requires that this money go to offset property tax," he told the commission.

Officials used a simple hypothetical to explain the mechanics: they estimated homestead-property taxes in the city and county combined might be roughly $15 million and suggested a new penny could generate about $20 million, meaning the homestead portion would be made whole first and any excess would be applied proportionally to non-homestead (commercial and industrial) tax rollback.

Commissioners pressed staff on eligibility and timing. Staff said homestead relief would apply to property owners who have registered the property as their primary residence with the tax assessor; sign-up is a one-time action and there is no age requirement. Under current state law the penny would begin collecting January 2028, but the commission said their state delegation (Senator Huffstetler was named in the discussion) is pursuing an amendment to move collections to January 2027 to provide more immediate relief.

Commissioners also raised practical concerns about mortgage escrow and refunds: staff explained that six months of collections would be applied toward the tax bills in the relevant fiscal year, after which refunds to escrow accounts could follow but homeowners should expect a lag as tax rates are recalculated. Officials noted that county approval is required for county participation; the city could place the measure on its ballot without county action, in which case only the county portion of relief would apply to city homeowners if the county approved and the city did not.

After discussion a commissioner moved to place the resolution on the November ballot; the motion was seconded and the clerk called the roll. The vote recorded a majority in favor and the commission approved placing the LHOST measure before voters. Commissioners and staff said full details would be provided to voters before the referendum date, and a pending special session at the state level could alter the start date if the amendment succeeds.