HR1418: HR1418 State-wide sales and use tax; property tax relief in counties or consolidated governments; provide - CA

This resolution proposes amending the Georgia Constitution to create a new state-wide 1 percent sales and use tax. Unlike most sales taxes, which fund general government operations, this tax's proceeds would be sent annually to the governing authority of every county and consolidated government in Georgia, split up according to each area's population from the most recent U.S. Census. The money could only be used to offset property taxes (called ad valorem taxes) on real property, dollar for dollar. Homestead properties (primary residences) get reduced first, then other real property, and only if money is left over can a county use it for other purposes it chooses. The new tax would apply on top of existing local sales taxes and would not count against caps on how much local sales tax can be charged, and it would apply even to food and beverages that are normally exempt from sales tax. Because it is a constitutional amendment, it must be approved by Georgia voters in a statewide referendum before taking effect.

• Creates a new state-wide 1 percent sales and use tax dedicated to property tax relief, separate from existing sales taxes.
• Requires the state to distribute the tax proceeds annually to counties and consolidated governments based on population from the most recent census.
• Directs the money to first cut homestead property taxes, then other real property taxes, then other local purposes if money remains.
• Exempts this new tax from general law limits on the maximum local sales tax rate a jurisdiction can charge.
• Applies the tax to food and beverage sales even though those are normally exempt from sales tax under current law.
• Requires the proposed constitutional amendment to be submitted to Georgia voters for ratification or rejection.

Georgia consumers who pay sales tax on purchases including food and beverages, property owners and homeowners in every county and consolidated government, and county governing authorities that would receive and distribute the new tax revenue for property tax relief.

If voters approve it, Georgians would pay a new 1 percent sales tax on most purchases, including groceries and beverages normally exempt, while property owners in every county would see their property tax bills reduced, potentially significantly for homeowners, shifting some of the tax burden from property to sales.

• Section 1 states the General Assembly's findings that spreading the tax burden through sales tax could ease property tax pressure that sometimes forces people from their homes.
• Section 2 adds a new Article IX, Section VIII to the Georgia Constitution establishing the 1 percent state-wide sales and use tax for property tax relief.
• Paragraph I(b) requires the state to collect the tax and pay proceeds annually to county and consolidated government authorities based on population.
• Paragraph I(c) sets the spending priority order: homestead property taxes first, then other real property taxes, then other purposes chosen by local governments.
• Paragraph I(e) exempts this tax from general law caps on total local sales tax rates.
• Paragraph I(f) removes the usual food and beverage sales tax exemption for this specific tax.
• Section 3 requires the amendment to be put to Georgia voters as a yes or no ballot question before it can take effect.

1. 2026-02-24House Second Readers (House)
2. 2026-02-20House First Readers (House)
3. 2026-02-19House Hopper (House)

• Dale Washburn (R, HD-144)Primary sponsor
• Robert Dickey (R, HD-134)
• Kasey Carpenter (R, HD-004)
• John Corbett (R, HD-174)
• Noel Williams (R, HD-148)
• Anissa Jones (D, HD-143)

• property taxes
• sales tax
• constitutional amendment
• local government funding
• ballot referendum