Bill > HB731

This bill establishes an Alternative Homestead Option Sales and Use Tax Act for Georgia, creating a new mechanism for counties to implement a 1% sales tax that can fund capital projects and provide additional homestead tax exemptions. The bill allows counties (referred to as "special districts") to conduct a referendum to levy a 1% sales tax, with the condition that the tax must be paired with a corresponding homestead property tax exemption. The tax would be collected for a maximum of ten years and distributed with 1% going to state administration costs, with the remainder allocated to the county. Counties can use up to 25% of the tax proceeds for capital projects like road improvements, and the remaining funds will be used to offset homestead property taxes. Importantly, the bill requires that newly incorporated municipalities receive a proportional share of the tax proceeds based on their population, ensuring they benefit similarly to existing municipalities. The tax can only be imposed through a voter referendum, and the ballot must clearly state that both the sales tax and homestead exemption must be approved simultaneously for either to take effect. The bill is designed to provide local governments with a flexible funding mechanism that directly benefits homeowners through property tax relief.

Budget and Finance

https://www.legis.ga.gov/legislation/71171