Two statewide constitutional amendments and one referendum were approved by Georgia voters, according to the Associated Press.
Constitutional Amendment One was approved with more than 60% of votes counted in favor. This means that home property assessments will be capped at the inflation rate for the previous year. By holding down assessment increases, property tax increases would also be limited since they are based on the assessed value of a home and the property tax rate. The change goes into effect Jan. 1.
The amendment will also allow local governments to use revenue from a 1% sales tax increase to lower property taxes if voters approve a local referendum to increase the sales tax.
But municipalities could opt out of the cap between Jan. 1 and March 1. Local officials have to pass a resolution and hold three public hearings to opt out.
Amendment Two narrowly passed. It will create a state tax court in the judicial branch and do away with the state’s current tax tribunal responsible for handling complaints involving the state Department of Revenue. Administrative setup of the new tax court will begin Jan. 1. The Associated Press called the vote in favor of the amendment early Wednesday morning.
It is exceptionally rare for ballot initiatives to not pass in Georgia. Since 2012, only one of the nine measures brought to voters in a general election has not been approved.
The last ballot measure Georgians voted on, the statewide referendum, will increase the tax exemption for tangible personal property — such as business inventory and farm machinery — from $7,500 to $20,000. More than 60% of votes counted were in favor of the measure. The increased exemption will go into effect Jan. 1.
“Raising the threshold for paying this onerous tax from ($7,500) to $20,000 is going to ease the financial pressure on employers struggling with rising costs due to inflation,” Hunter Loggins, the Georgia state director of the National Federation of Independent Businesses, said in a statement. The small business association helped write the legislation that led to the referendum.
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