Georgia Senate moves to cut property taxes by increasing sales taxes – WABE

The Georgia Senate handed a measure Tuesday that would cut back house owner property taxes by creating a brand new sales tax in alternate.

House Bill 1116 got here from the House as a cap on property tax valuation will increase.

The Senate’s amended model would create new particular taxing districts overlayed on county strains, and people districts may implement a 1% sales tax. The income would go towards discount of house owner property taxes.

The invoice would additionally typically prohibit income will increase from property taxes of greater than 3% or the federal Consumer Price Index, which is ever larger.

Homeowners would profit most from the mixed impact of the cap and the sales tax, Sen mentioned. Chuck Hufstetler, R-Rome, who offered the invoice on the Senate flooring. But he mentioned properties with out a homestead exemption would profit too.

“Just about every city and county would eliminate their homeowner property taxes. … And the rest of city and county taxes would be eliminated in some counties and reduced in other counties.”

Hufstetler mentioned property taxes have been rising at an unsustainable charge.

“Our citizens who have to live within their means are frustrated,” he mentioned.

Democrats criticized the measure, saying sales taxes devour a bigger portion of the family budgets of lower-income individuals. They additionally mentioned renters wouldn’t take pleasure in the identical profit from the property tax rollbacks as would owners.

“We are choosing to say that the people who own homes really are more important,” Sen mentioned. Sonya Halpern, D-Atlanta.

The Senate’s amended model of HB 1116 handed in a party-line vote 31-19.

The invoice returns to the House. The model that chamber handed in early March sought to restrain property value increases for taxation functions at 3% a yr or the federal Consumer Price Index, whichever is larger.

This story was offered by WABE media associate Capitol Beat.