State legislature plans shift away from property tax
Gilmer homeowners may get some property tax relief a year ahead of schedule.
A June 17 special session of the Georgia legislature plans to pass the Local Homestead Option Sales Tax (LHOST), also known as Senate Bill 33.
This law would help homeowners pay less property tax. It won’t lower property taxes for properties that aren’t homes.
It also won’t raise any more revenue.
“I think we would be pretty foolish to vote ‘no,’ because the only point of an LHOST is to eliminate as much as possible of your property tax,” County Commission Chairman Charlie Paris said.
At a Friday, June 5, special meeting, the Gilmer County Commissioners voted unanimously for Georgia State Rep. Johnny Chastain (R) to introduce the LHOST,
The new legislation will introduce a 1 percent sales tax on purchases across Georgia
The money raised from this new tax will go into a fund held by the tax commissioner
On Aug. 1, the tax commissioner will apply this fund will apply to people who own homesteads in Gilmer County. In Georgia, a homestead is any home that is your permanent primary residence.
There are three possible results to this arrangement, Paris said.
If the new tax raises less money than people normally pay in property taxes, Gilmer homestead owners will pay less property taxes, but will still pay some.
If the new tax raises money equal to the property tax, homestead owners won’t pay any property tax.
And if the new tax raises more money than the property tax, the extra money will be used to lower all property taxes.
“The LHOST will either lessen or completely eliminate property taxes for people who have homestead exemptions,” he said.
While property taxes apply only to people who own land in Gilmer, sales taxes can apply to anyone who visits Gilmer County and buys something.
The Gilmer Chamber of Commerce estimates that tourists spend millions yearly in Gilmer County.
If the Georgia legislature passes this change and the governor signs it, homeowners could be getting property tax relief in the upcoming year.
“Who wouldn’t rather have tourists coming in to help pay for your property taxes?” Paris said.