High-profile GOP property tax overhaul fails to clear the House

A sweeping GOP proposal that would overhaul local property taxes failed to pass Tuesday, with nearly all House Democrats opposing the measure over concerns about the impact to public services and schools back home.  The proposal was rolled out with much fanfare in late January, with Speaker Jon Burns calling the proposal “historic” at the […]

A sweeping GOP proposal that would overhaul local property taxes failed to pass Tuesday, with nearly all House Democrats opposing the measure over concerns about the impact to public services and schools back home. 

The proposal was rolled out with much fanfare in late January, with Speaker Jon Burns calling the proposal “historic” at the time. House Republicans say their ultimate goal is to eliminate property taxes on Georgians’ primary homes, but the current version would significantly reduce those taxes over time. 

To do that, though, requires amending the state constitution, which needs two-thirds votes in both chambers and approval from voters. That means Democratic support would be necessary to put the question on the ballot for voters, but only one House Democrat voted for the measure Tuesday, causing it to fail with a 99-to-73 vote – well short of the 120 needed votes. 

The House is set to reconsider the vote Wednesday. 

Critics of the bill say it would only benefit homeowners – leaving out renters – while hampering local governments’ ability to pay for services and leading to higher sales taxes. They accused Republicans of serving up an election-year gimmick. 

But proponents of the measure say drastic change is needed to stop rising property taxes and help people stay in their home. 

Talking to reporters after Tuesday’s vote, House Majority Leader Chuck Efstration, a Mulberry Republican, blasted Democrats for opposing the bill. He argued the constitutional amendment was needed to provide “transformative relief.” 

“They care more about tax collectors than they do Georgia homeowners. That’s very unfortunate. I’m sad to see this result. I hope that they’ll reconsider their position so that we can provide the relief that Georgians are calling for,” Efstration said. 

One piece of the House GOP plan was finalized Tuesday when Gov. Brian Kemp signed off on the amended budget for this year that offers about $2 billion in taxpayer relief, including one-time property tax break for homeowners that the House successfully had added. The budget also now includes funding for another cut to the state’s income tax rate. 

But the big long-term changes that House Republicans are seeking have struggled to gain broad support. The two-part proposal had undergone multiple revisions, with changes made shortly before hitting the House floor for a vote Tuesday. Efstration said House Republicans were evaluating their options in the face of potentially unwavering Democratic opposition. 

House Minority Leader Carolyn Hugley, a Columbus Democrat, dismissed the proposal as an election-year appeal to voters and cautioned against making such a drastic change permanent in the state constitution. 

“What we are seeing here today is an exercise in cold, hard politics. It’s simply about what voters do you want to drive out to the polls,” Hugley said during the debate over the measure, adding that “the math’s just not mathing.” 

Hugley told reporters after the vote that the current proposal was an improvement from earlier iterations but still not one she could support. She noted that other House GOP proposals, like a package of insurance-related bills, were the result of careful and public study last year. 

“This is a very important change to our tax structure. We’re talking about a constitutional amendment, and once that’s done, there is no going back,” Hugley said. 

The bill’s sponsor, Rep. Shaw Blackmon, a Bonaire Republican who chairs the House’s tax-writing committee, argued the plan is needed because of the unsustainable trajectory of rising property taxes. 

The proposal would reduce the taxable value on homes over a decade, assessing taxes on homes based on 10% of their fair-market value as opposed to 40% as is done today. 

An association that represents counties at the state Capitol estimates the lost revenue to equal about $4 billion. Local governments would be able to make up the lost revenue with sales taxes, to a point, and those that still come up short would receive state grants funded through the discontinuation of the state’s controversial data center tax credit. 

“Home ownership is fundamental to the American dream, and as elected officials, we have the awesome responsibility of fostering and enabling that dream,” Blackmon said. 

“This major step is seen by some as revolutionary, but in my mind, it’s rather simple. Do we allow this measure to go before the people and allow them to have a voice in solving this unsustainable burden?” he said. 

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