As Election Day approaches, it’s important to know what will be on your local ballot. You can find an applicable sample ballot on the Georgia My Voter Page. Georgia voters can expect to see three statewide measures that would impact taxation if passed.
Georgia Amendment 1 would cap ad valorem tax, or taxes based on a property’s assessed value. Georgia Amendment 2 would expand the state judicial system to establish a tax court. Georgia Referendum A would increase the threshold for tax exemption based on tangible personal property.
Georgia Amendment 1, Local Option Homestead Property Tax Exemption Amendment
If passed, Georgia Amendment 1 would be welcome to some and come at a cost to others. The statewide homestead exemption would apply to all counties, school systems, and municipalities unless they opt-out.
The proposed constitutional amendment would limit a homeowner’s property tax, regardless of its valuation. The measure is expected to relieve homeowners as they feel the effects of inflation. However, the amendment would not apply to landlords, who may burden their tenants with the rise in property value.
A total of 36 out of Georgia’s 159 counties have implemented an exemption that locks in the property valuation at the base year level, as long as the homeowner continues to reside at the property.
Inflation rates differ across industries, so Georgia Amendment 1 would ensure that the increase in property tax for the homeowner matches the overall rate of inflation, even if their home’s value increased (due to inflation) at a higher rate. The amendment would not apply to new homeowners, who will be taxed based on the home’s current value.
According to the Georgia Budget and Policy Institute, voters will not get the necessary context on the ballot to understand the impact of Georgia Amendment 1. Primarily, voters may not know that the lack of revenue from the capped property taxes will affect everyone, including non-homeowners. If passed, the amendment could negatively impact funding for local school systems and even raise local sales tax to make up for the loss in revenue.
Georgia Amendment 2, Creation of Tax Court Amendment
Georgia Amendment 2 would create a statewide tax court that would function alongside the superior courts. The measure would establish a tax court in the judicial system, moving it from the tax tribunal within the state’s executive branch.
Amendment 2 would establish the Georgia Tax Court with statewide jurisdiction, concurrent with business and superior courts in equity cases. Judges, appointed by the governor and confirmed by legislative committees, would serve four-year terms.
The constitutional amendment would also guarantee that appeals would be heard in the Georgia Court of Appeals. If approved, the measure would amend Article VI of the Georgia Constitution, which governs the state’s judicial system. The Georgia House unanimously passed House Resolution 598 on February 27, followed by near-unanimous approval from the Georgia Senate on March 20.
The amendment is expected to simplify and expedite the current hearing and appeals process.
Georgia Referendum A, Personal Property Tax Exemption Increase Measure
Voting “yes” for Georgia Referendum A would increase the current property tax exemption for personal property from $7,500 or less to $20,000 or less.
The last referendum on this exemption was approved in 2002 when Georgia voters approved an increase from $500 to $7,500. Another measure impacting ad valorem tax, Georgia Referendum A was created to support small businesses that have been impacted by rising inflation rates.
The measure still does not apply to motor vehicles, trailers, or mobile homes.
Early voting ends Friday, November 1. Visit georgia.gov/vote-early-person to find your in-person early voting location. If you plan to vote on Election Day, November 5, visit georgia.gov/vote-in-person-election-day for a how-to guide. To learn more about revenue and taxation policies in Georgia, visit gbpi.org.