Georgia Senate Blocks Property Tax Cuts Tied to Sales Tax Increases
Atlanta, Friday, 3 April 2026.
The Georgia Senate’s April 2026 rejection of a major tax overhaul prevents shifting the tax burden from property owners to consumers through a proposed 1% sales tax increase.
The Mechanics of the Failed Property Tax Overhaul
The legislative maneuverings surrounding House Bill 1116, also known as the Homeownership Opportunity and Market Equalization Act of 2026, highlighted a stark partisan divide over taxation strategies [1]. Initially approved by the Republican-led Georgia House on Tuesday, March 24, 2026, the bill sought to create a Local Homestead Option Sales Tax (LHOST) [1]. Under this proposed policy, counties and special districts could levy a 1% sales tax beginning January 1, 2028, to offset sweeping property tax rollbacks [1]. Furthermore, starting in 2027, local school boards and governments would have been required to secure voter approval before adopting budgets that increased property tax revenues beyond the greater of 3% or the federal Consumer Price Index [1][2]. The legislation defined eligible homestead properties as primary residences occupying up to 20,000 m² [1]. However, after a complex series of amendments—including a temporary insertion of the bill’s language into Senate Bill 33—the measure ultimately died in the Senate during the final hour of the legislative session on Thursday, April 2, 2026 [1][3].