by Jill Nolin, Georgia Recorder, [This article first appeared in the Georgia Recorder, republished with permission]

January 29, 2026

House Republicans have proposed a major property tax overhaul that they say will save Georgia homeowners money but eliminate a reliable source of revenue for counties, cities and schools. 

Under the proposal, homeowners would no longer have to pay property taxes on their primary residence starting in 2032, amounting to a 100% homestead exemption. The current homestead exemption would gradually increase in the meantime. 

But local officials would be able to make up the lost revenue through sales taxes – to a point – and fees and assessments for specific services. 

“Property taxes across Georgia have risen at an unsustainable rate,” said House Speaker Jon Burns, a Newington Republican. “Skyrocketing property values are pushing tax bills higher and higher, placing an unfair and unsustainable burden on homeowners throughout our great state.”

Burns billed the plan as “historic” Wednesday as he unveiled the package at a state Capitol press conference with House Republicans standing behind him. The package calls for amending the state Constitution, which will require two-thirds vote in both chambers – meaning the support of Democrats is needed. Georgia voters would also have to sign off on it. 

The resolution for the constitutional amendment, HR 1114, but not the enabling legislation, was filed Wednesday. 

“We see this as something that hopefully everybody – local, state – we can come together, lock arms, roll up our sleeves and get some good work done for the taxpayers,” said Shaw Blackmon, a Bonaire Republican who chairs the House Ways and Means Committee and who has been tasked with shepherding the proposal through the process. 

Several Democrats said Wednesday that they were reserving judgment until they see the details. Rep. Bryce Berry, an Atlanta Democrat and teacher, said he has an open mind but he’s wary of how any erosion of the property tax might affect schools. 

“I don’t want to hamper those rural districts,” Berry said. 

The package also calls for another one-time tax relief grant like the one that sent about $500 back to homeowners in 2023 at a cost of about $850 million to the state. A new round of property tax breaks, though, has not yet been funded. 

And it also calls for capping local property tax revenue growth at 3% for the non-exempt property owners who would continue to pay property taxes. 

The property tax is an important revenue source for local governments and schools. The total lost local revenues would be at least $5 billion, according to an estimate from a state association that represents counties at the Capitol. 

Some counties would have an easier time than others recovering the lost revenue, according to an analysis from the Association County Commissioners of Georgia. Some bedroom communities, for example, would have to raise the sales tax more significantly to offset their losses. And there are limits to how high local officials can take their sales tax rate, with the limit still at 5% in addition to the state’s 4% rate. 

Clint Mueller, the association’s deputy director, said the revenues could be replaced by only relying on the sales tax, which is another primary source of funding for local governments. Local officials could also try to find another revenue source – or cut services. 

“One way or the other, there still has to be something to fill the gap once homesteads are completely eliminated,” Mueller said Wednesday. 

Blackmon acknowledged to reporters that the plan does “rethink the way that we fund local governments.” He says that even with the likely sales tax bumps and other offsetting revenue-raising increases, homeowners should come out ahead under the plan. 

Rep. Chas Cannon, a Moultrie Republican who is the county administrator in Colquitt County, said the challenge now is to explain the plan to taxpayers and also the local officials who are being asked to navigate a new local funding landscape. 

“The way we do things has been around for a long time, so it’s going to take very complicated steps to kind of unwind that,” Cannon said. 

The House proposal is one of many percolating at the Gold Dome that are designed to serve up answers for voter concerns about affordability as the midterms loom. In the Senate, there is a high level push to end Georgia’s income tax rate, as well as other measures meant to rein in property tax bills.

Georgia Recorder is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Georgia Recorder maintains editorial independence. Contact Editor Jill Nolin for questions: info@georgiarecorder.com.