Georgia House Bill HR1104

Georgia 2025-2026 Regular Session

• Introduced: 1/28/26

Caption

Local government; sales and use tax for purpose of providing property tax relief; authorize - CA

Impact

The proposed amendment seeks to generate revenue for local governments, diversifying their funding sources while simultaneously alleviating the tax pressure on property owners. By opting for a local sales tax instead of relying solely on property taxes, the bill aims to spread the tax burden across a broader base of taxpayers. This could reduce the reliance on property taxes, which can sometimes lead to displacement of residents due to unaffordability. The legislative findings support this amendment by stating it could eliminate the cumbersome administrative processes associated with property tax exemptions.

Summary

House Resolution 1104 proposes an amendment to the Georgia Constitution allowing county or consolidated governments the authority to impose a local sales and use tax specifically aimed at providing property tax relief. This legislative proposal indicates that once approved by a majority of voters in a local referendum, the tax would be levied at a rate of 1 percent for a maximum duration of five years. Such a tax aims to decrease the ad valorem taxes on real property, thus potentially easing the financial burdens on property owners.

Contention

Notably, HR 1104 is subject to debate regarding its effectiveness and fairness. Proponents advocate that this option provides a mechanism for localized tax control, enabling communities to tailor tax measures to their specific needs. Opponents, however, may argue that implementing such a tax could disproportionately affect lower-income residents, as they may bear a larger financial burden relative to their income. Additionally, there are concerns about potential misuse of the tax funds, as defined restrictions require that proceeds must be entirely allocated to reduce property taxes.