by Dave Williams | Capitol Beat News Service
ATLANTA – Legislation giving Georgia cities, counties and school districts until April 30 to decide whether to opt out of offering a property tax break voters approved last fall cleared the state Senate Tuesday.
Georgians passed a constitutional amendment last November prohibiting local governments and school districts from raising residential property assessments in a given year by more than the annual rate of inflation, even if a home’s market value has gone up more.
Supporters argued the constitutional change would offer homeowners more certainty in their property tax liability year to year. But the legislation prompted concerns among local government and school district officials anxious to protect a key revenue source funding their operations.
Last year’s measure gave those local governments the ability to opt out of the measure if they filed an opt-out resolution with the Georgia secretary of state’s office by March 1 and held at least three public hearings. This year’s House Bill 92, which the Senate passed 52-2 on Tuesday, extends that deadline to the end of next month.
The House passed the bill last month with just one “no” vote. But it went through a series of changes when it got to the Senate.
Offering a carrot to entice school districts to offer property owners the tax break rather than opt out, the Senate version of the bill exempts funds spent on school construction from taxation in districts that agree to provide the tax relief. It also limits the tax exemption to primary residential properties of no more than five acres.
Local governments and school systems that choose to opt out of the tax exemption this year would be given an opportunity to opt back in annually through 2029.
House Bill 92 moves back to the House next to weigh in on the changes made by the Senate.
