Georgia homestead exemption tax law could put DeKalb sales taxes at risk

Last year, voters approved a referendum on House Bill 581, establishing a new statewide floating homestead tax exemption. The bill also changed other tax procedures, which could put DeKalb’s sales and use taxes at risk.

The law went into effect on Jan. 1 after voters across Georgia approved the referendum on HB 581 on Nov. 5, 2024. Since the referendum was approved, HB 581 went into effect in January. In DeKalb County, about 58% of voters approved the referendum, and about 42% voted no.

HB 581 had a few sections. One created a floating homestead exemption that caps property assessment increases at the inflation rate. Another section allows for a new local option sales tax, and the third section changes other tax procedures.

However, the ballot question in November 2024 only addressed the floating homestead exemption. Here’s what the question said: “Shall the Constitution of Georgia be amended so as to authorize the General Assembly to provide by general law for a state-wide homestead exemption that serves to limit increases in the assessed value of homesteads, but which any county, consolidated government, municipality, or local school system may opt out of upon the completion of certain procedures?”