(The Center Square) – The Georgia House of Representatives passed a bill that gives local governments more time to decide on whether to opt out of a property tax cap approved by voters last year.
House Bill 581 required local cities, counties and school boards to freeze property tax assessments at the rate of inflation. Cities and counties could enact a new penny sales tax to offset property taxes.
The bill passed both chambers last year, and the measure was approved by 63% of Georgia voters in November.
The law gave entities the option of not enacting 581 if they held three public hearings by March 1. House Bill 92 extended that deadline to March 31.
A previous version of the bill would have extended the deadline to May 1.
Rep. Shaw Blackmon, R-Bonaire, told the House Ways and Means Committee in January that some local governments wanted more time to get their questions about the legislation answered.
“This is an attempt to move quickly and maybe give our communities and levying authorities a little bit more time to analyze it and come up and make a really good decision on saving our homeowners and taxpayers some much needed dollars,” Blackmon said.
Local governments have listed several reasons for wanting to opt-out. The Savannah-Chatham County Public School System said it already has a homestead exemption that allows property owners to freeze property taxes at the purchase price, according to a WTOC report.
The Thomaston-Upson County Board of Education said it could be forced to cut staff or raise the millage rate, according to a statement on its website.
The bill passed 173-1 in the House and goes to the Senate for immediate consideration.