The Speaker of the Georgia House of Representatives has thrown his support behind legislation eliminating homestead property taxes.
Called the Georgia HOME (Home Ownership and Market Equalization) Act, it would eliminate property taxes on homesteads by 2032. It would preserve property tax exemptions currently in place.
“This landmark legislation will not only mandate the elimination of property taxes on primary residences by 2032 but will also provide immediate relief for homeowners by doubling, or more than doubling, the state homestead exemption every year until the mandate takes effect, and providing homeowner tax relief grants to Georgia families, on average, a return of $500,” explained Speaker Jon Burns (R-Newington).
Burns said property tax rates have skyrocketed across the state, placing an unfair and unsustainable burden on homeowners. He said this legislation can help put homeownership within reach of young families and first-time buyers.
Tim Turner, President of the Realtors of Greater Augusta (RGA), told ABD it can help open doors to home ownership in two ways.
“One is on the entry to the property. If you’re buying a property, and property taxes are part of that purchase cost, as the buyer assumes ownership, there is an amount there,” he said. “Also, through the ongoing ownership, there is an annual property tax bill. So, what we see is that in terms of stimulating demand, lower property taxes can lower purchase costs or increase portability through reduced purchase costs.”
Turner pointed to the most recent study that found 40 is the age for first-time home buyers, which is a record high.
“In my lifetime, that number has increased over several years, and speaks to an ongoing challenge with affordability. So, I think that the effort here is to make home ownership more feasible or more accessible because Georgians are having to delay their purchases, their first purchase now. It’s going to take a broad-based effort to address affordability, and property tax relief is one of those components,” he said.
Burns added that the measure will also provide long-term security for senior citizens who will not get taxed out of the homes they have owned, sometimes for decades.
Turner said it is also an avenue by which people can build financial security.
“Home ownership is one of the many ways that we increase our net worth,” he said. “Home ownership is called the American dream, and part of that dream is financial independence and better financial status.”
Joining Burns at his press conference was Rep. Shaw Blackmon (R-District 146). He said Georgia HOME complements other important pieces of legislation, including improving school safety.
“But from this perspective, protecting our homes, this is certainly the most meaningful legislation that we worked on, because what we are doing is unsustainable for the families in Georgia,” said Blackmon. “We believe we have the right recipe here, if you will, and we’re going to work on it to really refine it and get it exactly right. It’s what we do in the house, and we’ll pass it.”
Local governments have the option to opt in to the proposal at any time before the mandate takes effect. In addition to eliminating property taxes on homesteads, it would limit revenue growth on other properties to three percent.
Turner said RGA will be tracking the measure as it makes its way through the legislature.
“A primary way we do that is through the Georgia Association of Realtors’ advocacy team. We rely on their expertise and skill in communicating activities that are happening under the dome,” he said.
