The Georgia Senate on Tuesday backed a measure to cap how much home assessments can go up each year at 3% in an effort to tamp down property tax increases.
It was the second time the Senate has passed the measure, and it was approved 52-0 as House Bill 581. It now moves back to the House for its consideration. The Senate also passed House Resolution 1022, which would essentially ask voters this fall whether they support the General Assembly capping assessments.
The Senate made the move Tuesday — the second to last day of the 2024 General Assembly session — after seeing its earlier efforts stall in the House Ways and Means Committee.
Both chambers have pushed a host of bills to limit assessments, which have skyrocketed in parts of metro Atlanta.
A homeowner’s property tax bill is mostly made up of two elements: the tax rate and the assessed value of the property. School districts, cities and counties have been able to count on a boost in revenue without raising tax rates because the assessed values of homes and businesses in some areas have risen sharply.
Senators say about 75% of what homeowners pay goes to schools, and local governments have been taking in double-digit increases in revenue without raising the tax rate.
The Senate’s 3% cap on unimproved property assessment increases could mean local governments and school districts would have to raise tax rates, but some lawmakers say at least that would make the process more transparent to homeowners, many of whom don’t understand the values placed on their homes.
Senate Finance Chairman Chuck Hufstetler, R-Rome, said under HB 581, local governments could vote to opt out of the 3% assessment cap. That was added to the proposal to answer colleagues concerned that the measure took local control away from cities, counties and school districts.
“If you don’t want to protect your taxpayers, you can not protect them by letting your local government opt out,” Hufstetler said.
Later Tuesday or on Thursday the Senate will consider legislation to increase the state homestead exemption from $2,000 to $10,000. The exemption lowers the taxable value of a homeowner’s property.
In January, House Speaker Jon Burns’ proposed hiking the homestead exemption from $2,000 to $4,000.
Senate leaders said it didn’t go far enough.
The change would only affect taxpayers in about one-third of Georgia counties because most already have homestead exemptions that are higher than the standard state exemption. And even in counties that now have a $2,000 exemption, taxpayers would save a minimal amount, senators said.
So the Senate raised the proposed exemption and is expected to send it back to the House for its consideration on the final day of the session, Thursday.
