Property Tax Reform - What you need to know

As of April 2026, Senate Bill 33 has emerged as one of the most closely watched pieces of legislation affecting homeowners and the real estate market in Georgia. The bill now sits on the Governor’s desk, with a decision expected by early May. At its core, SB 33 is an attempt to address a growing concern: property taxes rising faster than people can keep up with. SB 33 seeks to address this issue by capping annual increases in property tax assessments at the rate of inflation.

Over the past several years, home values across Georgia have increased significantly. As assessed values climb, so do property tax bills—often at a pace that outstrips inflation. For many homeowners, especially those on fixed incomes, this has created a sense of “taxation by valuation,” where they are effectively penalized for market conditions beyond their control. This gap between inflation and property tax growth is a key driver behind the push for reform.

Another significant component of the bill is the creation of a Local Homestead Option Sales Tax, or LHOST. This provision would allow local governments to adopt a 1% sales tax to offset reductions in property tax revenue. The idea is to broaden the tax base by capturing contributions from visitors, commuters, and others who benefit from local services but do not pay property taxes.

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