Overview
- House Bill 1116 cleared the Georgia House and is now in the state Senate, and it would take effect immediately if signed by Governor Brian Kemp.
- The measure would limit yearly hikes on property tax bills to 3% or the current inflation rate, whichever is higher, and it would let localities add a penny sales tax to help replace lost revenue.
- Supporters, including House Speaker Jon Burns and sponsor Rep. Shaw Blackmon, say the cap reins in steep tax growth that has strained homeowners in recent years.
- City leaders caution the cap could force cuts to core services, with Decatur estimating a loss of about $4.2 million a year, roughly equal to the cost of its entire fire department.
- The proposal follows a 2024 law that tied increases to inflation with opt-outs, after which 32 counties adopted a floating local sales tax and four rejected it.