HR 1104: Local government; sales and use tax for purpose of providing property tax relief; authorize - CA

This resolution proposes a change to the Georgia Constitution that would let the governing authority of any county or consolidated government adopt a new local sales and use tax, but only if a majority of voters approve it in a referendum. The tax rate would be capped at 1 percent and could last no more than five years at a time, though it could be reimposed later through the same voter approval process. All money raised would have to go toward a dollar-for-dollar reduction in property taxes (ad valorem taxes) on real estate in that county, and could not be used for anything else. The tax would not count against existing state limits on how much local sales tax a county can stack up, and it would apply even to food and beverage sales that are normally exempt. If approved by the General Assembly and then by statewide voters, the amendment would appear on the ballot for ratification.

• Lets a county or consolidated government's governing authority adopt, by resolution, a local sales and use tax of up to 1 percent if voters approve it in a referendum.
• Requires that all proceeds from the tax go only toward directly lowering property taxes on real estate in that county, dollar for dollar.
• Caps each authorization of the tax at five years, though it can be renewed through a new vote once the prior tax expires.
• Exempts this new tax from existing state caps on the total local sales taxes a jurisdiction may impose.
• Applies the tax to food and beverage sales that are normally exempt from sales tax under other laws.
• Sends the proposed constitutional amendment to Georgia voters for statewide ratification or rejection.

County and consolidated government officials who would gain new taxing authority, voters in those counties who would decide the tax through a referendum, property owners who could see reduced property tax bills, and shoppers and diners who would pay the extra sales tax, including on food and beverages.

If ratified, Georgians in participating counties could see property tax bills fall while paying a bit more sales tax on everyday purchases, including groceries and restaurant meals. The change shifts some of the tax burden from property owners to a broader group of consumers, including visitors and renters who make purchases locally.

• Section 1 lists the General Assembly's findings, including that spreading the tax burden could ease pressure on property owners and reduce the need for confusing property value cap exemptions.
• Section 2 adds a new Article IX, Section VIII to the Georgia Constitution authorizing the optional 1 percent sales and use tax, contingent on local voter approval.
• Paragraph I(a) sets the tax rate at 1 percent, limits it to five years per authorization, and ties its administration to the existing special county 1 percent sales tax law (O.C.G.A. Title 48, Chapter 8, Article 3).
• Paragraph I(b) and (c) require that proceeds be used only for a dollar-for-dollar cut in real property taxes and that this purpose be stated in the authorizing resolution and ballot question.
• Paragraph I(d) and (e) clarify the tax can coexist with other local sales taxes and does not count toward general state limits on total local sales tax rates.
• Paragraph I(f) removes the usual sales tax exemption for food and beverages with respect to this tax.
• Section 3 sets the exact ballot language voters would see and specifies that ratification would add the amendment to the Georgia Constitution.

1. 2026-02-02House Second Readers (House)
2. 2026-01-29House First Readers (House)
3. 2026-01-28House Hopper (House)

• Dale Washburn (R, HD-144)Primary sponsor
• Robert Dickey (R, HD-134)
• Trey Rhodes (R, HD-124)
• John Corbett (R, HD-174)
• Spencer Frye (D, HD-122)
• Ron Stephens (R, HD-164)

• property taxes
• sales tax
• local government finance
• constitutional amendment
• tax relief