Georgia homeowners’ property values couldn’t rise faster than the inflation rate, putting a brake on annual property tax increases, according to a bill that passed the state Senate on Tuesday.
Property taxes pay for most local services, including schools.
The property tax cap legislation is moving quickly through the General Assembly this year as lawmakers prioritize affordability and cost of living. Proposals to cut income taxes or reduce property taxes entirely are also pending.
The bill would eliminate a part of state law that allowed school systems and local governments to continue levying taxes on property values that increase more than the inflation rate. Property taxes are based on assessed home values and local tax rates.
About 71% of Georgia’s 180 school systems opted out of the cap last year, along with 29% of city and county governments. Voters approved the tax limit in 2024.
If the bill is approved, homeowners whose properties rise in value would save money on their taxes, while local school systems and governments would lose that tax revenue.
“We had seen property taxes being increased on homeowners by double digits,” said state Sen. Chuck Hufstetler, R-Rome, who sponsored Senate Bill 382. “We’ve heard from homeowners who say they can’t afford a massive increase in their own taxes.”
Opponents of the bill said it reduces education funding and falls short of providing real relief to struggling families.
State Sen. Derek Mallow, D-Savannah, said state legislators should raise the minimum wage, eliminate tax breaks for big businesses and help the homeless.
“If we truly wanted to help the least of these among us, we have the power through a budget to appropriate it and do something about it if we were serious about it. Now the question becomes, where does our moral compass actually lie?” Mallow said.
The bill cleared the Senate on a 31-19 vote, with one Democrat, state Sen. Jaha Howard, D-Smyrna, crossing party lines to vote with Republicans in the majority. SB 382 will next be considered by the state House.
