Georgia House Bill HB1177

Georgia 2023-2024 Regular Session

• Introduced: 2/7/24

Caption

Revenue and taxation; statewide homestead exemption from ad valorem taxes when current year assessed value exceeds base year value; provide

Impact

If enacted, HB 1177 will significantly alter how property taxes are collected and administered across the state. The bill mandates that local governing authorities must approve the exemption through an ordinance or resolution, followed by a referendum where residents will vote on the measure. This creates a necessary engagement with local populations, ensuring the exemption is in line with community interests while also bringing potential tax savings for homeowners. The bill's implementation is set to begin on January 1, 2025, subject to the outcomes of the required local elections.

Summary

House Bill 1177 proposes a statewide homestead exemption from ad valorem taxes, specifically targeting residents whose current assessed property value exceeds its base year assessed value. The bill is designed to provide property tax relief by allowing homeowners to save on taxes proportional to the increase in the value of their homes, making it an important financial consideration for many residents. The exemptions will apply only upon obtaining local government approval, ensuring that municipalities have a say in the implementation of this tax relief measure.

Contention

During discussions regarding HB 1177, notable points of contention arose centered on the balance of state and local government control over tax policy. Supporters argue that the bill enables necessary tax relief and provides a predictable income for local governments while rejecting complex taxation systems that could disadvantage homeowners. Conversely, critics express concerns over the sustainability of local tax revenues if broad exemptions are granted, particularly in areas where property tax is a significant source of funding for essential services. These debates underscore the complexities inherent in reforming tax law, where fiscal responsibility must meet residents' needs.