HR1104: HR1104 Local government; sales and use tax for purpose of providing property tax relief; authorize - CA

Georgia counties and consolidated governments cannot currently create a new sales tax specifically to reduce property taxes. This resolution proposes a constitutional amendment that would let a county or consolidated government's governing authority impose a 1 percent sales and use tax for that purpose, but only after voters in that jurisdiction approve it in a local referendum. The tax could run for up to five years, would have to be administered like the existing special county 1 percent sales tax under Georgia law (O.C.G.A. Title 48, Chapter 8, Article 3), and its proceeds could only go toward a dollar-for-dollar cut in property taxes on real estate. It would not count against existing caps on local sales taxes and would apply even to food and beverage sales otherwise exempt from tax. Because this is a constitutional amendment, it must go before Georgia voters statewide for ratification before taking effect.

• Proposes a constitutional amendment letting a county or consolidated government impose a 1 percent local sales and use tax after voter approval in a referendum.
• Limits use of the tax's proceeds strictly to a dollar-for-dollar reduction in property taxes (ad valorem taxes) on real property in that jurisdiction.
• Caps the tax at five years per approval, requiring a new referendum to reimpose it after it expires.
• Exempts this new tax from counting toward general law limits on how many local sales taxes a jurisdiction can stack.
• Removes the usual food and beverage sales tax exemption for purposes of this specific tax.
• Sends the proposed amendment to Georgia voters statewide for ratification or rejection, with specific ballot language spelled out in the resolution.

County and consolidated government officials who could seek to impose the tax, local voters who must approve it by referendum, property owners who would see reduced property tax bills, and shoppers in those jurisdictions who would pay the added 1 percent sales tax, including on food and beverages.

If ratified and later adopted locally, this would shift some of the property tax burden onto sales taxes paid by anyone shopping in the county, potentially lowering property tax bills for homeowners while raising costs on everyday purchases, including groceries that are normally sales-tax exempt.

• Section 1 states legislative findings that an optional sales tax could ease property tax burdens, reduce disputes over capping property value increases, and help prevent people from being forced out of their homes.
• Section 2 adds a new Section VIII to Article IX of the Georgia Constitution authorizing counties and consolidated governments to impose the 1 percent tax by resolution, subject to referendum approval.
• The new constitutional language sets a five-year maximum duration per imposition and requires a new referendum to reimpose the tax after expiration.
• Proceeds must be used only for a dollar-for-dollar decrease in real property ad valorem taxes, and the resolution and ballot question must state the tax's purpose and time limit.
• The tax would not count against general law caps on total local sales taxes and would not be subject to the usual food and beverage sales tax exemption.
• Section 3 sets the exact ballot language voters will see and specifies how ratification would occur under Article X, Section I, Paragraph II of 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 funding
• constitutional amendment
• county government