SAVANNAH, Ga. (WSAV) — Georgia voters will all have three ballot questions to answer about taxes in the upcoming election.
Two of them are proposed amendments to the Georgia Constitution and the other is a House Bill. Here’s what they are and what they could mean:
Proposed Amendments
House Resolution No. 1022:
“Provides for a general law state-wide homestead exemption that may differentiate among political subdivisions.”
“Shall the Constitution of Georgia be amended so as to authorize the General Assembly to provide by general law for a state-wide homestead exemption that serves to limit increases in the assessed value of homesteads, but which any county, consolidated government, municipality, or local school system may opt out of upon the completion of certain procedures?”
This amendment would be used to slow property tax hikes that occur when home values rise. Property taxes are based on the assessed value of a home and the property tax rate.
If it is approved, home property assessments could be capped at the inflation rate for the previous year. By doing this, it would hold down assessment increases so property taxes would be limited as well.
It should be noted that most property tax money goes toward public schools.
The proposal would also allow local governments to use revenue from a 1% sales tax increase to lower property taxes. Some counties and cities already carry taxes like this, the Atlanta Journal Constitution (AJC) reported.
“Political subdivisions” will have the option to both opt in or opt out of the tax exemption program. Political subdivisions typically indicate any division of any state or local governmental unit which is a municipal corporation or have been delegated the right to exercise part of the sovereign power of the unit.
House Resolution No. 598:
“Provides for a state-wide Georgia Tax Court.”
“Shall the Constitution of Georgia be amended so as to provide for the Georgia Tax Court to be vested with the judicial power of the state and to have venue, judges, and jurisdiction concurrent with superior courts?”
The second proposed amendment would create a state tax court that would be equipped with judicial power and statewide jurisdiction. The state has a Tax Tribunal, which is under the executive branch.
The new tax court would make that a part of the state’s judicial branch. The Tax Tribunal reviews cases concerning tax matters in the state.
This tax court would be responsible for handling cases concerning complaints involving the state Department of Revenue. The tax court would have a chief judge appointed by the governor, and the chief judge would appoint up to three assistant court judges, the AJC said.
Each judge on the court would serve four years, with the approval of the state’s Senate and House Judiciary Committees.
A “yes” vote would create the new tax court, while a “no” vote would leave the current system in place.
Statewide Referendum Question
House Bill No. 808
“Do you approve the Act that increases an exemption from property tax for all tangible personal property from $7,500.00 to $20,000.00?”
The third ballot question would raise the amount of tangible personal property tax exemption from the current $7,500 to $20,000.
“All tangible personal property” excludes motor vehicles, trailers and mobile homes, but includes furniture, aircraft, boats, machinery and similar belongings.
Personal property includes furniture, fixtures, machinery, equipment, inventory and other property used in a business. This would also include aircraft or boats owned by an individual or corporation.
This would be the first expansion of this personal property tax exemption since 2002 when voters approved it being increased from $500 to the current $7,500.
WSAV also has an explainer on election rules and what to expect when casting your vote in Georgia.
