Habersham voters to decide property tax relief sales tax

CLARKESVILLE, Ga. — Habersham County voters will decide this fall whether to add a one-cent Local Option Sales Tax dedicated to reducing property taxes after county commissioners unanimously approved two measures Monday night placing the question on the Nov. 3 ballot.

The Habersham County Board of Commissioners voted 5-0 to approve an intergovernmental agreement with Alto, Baldwin, Clarkesville, Cornelia, Demorest, Mt. Airy and Tallulah Falls to implement the Floating Homestead Local Option Sales Tax, also known as the Property Tax Relief Local Option Sales Tax. Commissioners also unanimously approved a resolution calling for the countywide referendum.

A year in the making

County Manager Tim Sims said the proposal became possible after Georgia lawmakers approved House Bill 581 and local voters approved the constitutional amendment allowing counties to seek voter approval for the tax.

The new one-cent sales tax would remain in effect for five years and must be used exclusively to reduce property taxes.

“We have been talking with the cities about this for a little over a year,” Sims told commissioners. “They were all 100% unanimous behind this.”

During the past two weeks, all seven municipalities approved the required intergovernmental agreement before Monday night’s county vote.

Tax relief for all property owners

Sims said one of the biggest misconceptions about the proposal is who would benefit if voters approve the measure.

“This lets all property owners across the county participate in this, not just homesteaded properties,” Sims said.

He explained the legislature considered a separate proposal this year that would have limited tax relief to homesteaded properties, but that measure did not pass.

Instead, the proposed sales tax would reduce property taxes for residential, commercial and agricultural property owners based on each local government’s tax digest.

Based on current projections, Sims said the tax would allow for an estimated 3.608-mill rollback in property tax rates across the county and its municipalities.

“So right now, if we get what’s estimated the first year, that will be a 3.608 rollback of the millage rate to everyone’s property, including the cities,” Sims said.

Commissioner Dustin Mealor noted many property owners have expressed frustration over rising property assessments in recent years.

Sims responded that Habersham County already offers a property tax freeze for qualifying homeowners that is more generous than the state’s program.

“We actually have a better freeze than what the state has,” Sims said.

He explained qualifying homeowners who elected the county’s homestead tax freeze continue to receive that benefit, while state law provides a separate 3% annual assessment cap for other qualifying properties.

Next steps

Monday night’s vote does not impose the sales tax. Instead, it authorizes the Habersham County Board of Elections to move forward with the referendum process.

Sims said the county was required to act before state deadlines to ensure the measure could appear on the November ballot.

“Once we approve, if you approve this tonight, it’ll go to the election board, who will have a special call session next week to approve it and then send it into the state to be added to the November ballot,” Sims said.

If approved by voters on Nov. 3, the property tax relief sales tax would take effect Jan. 1, 2027, and remain in place through Dec. 31, 2031.

*Correction* The story’s first paragraph incorrectly stated the new FLOST would replace the county’s existing one-cent Local Option Sales Tax. It would not replace the existing SPLOST, and has been updated accordingly. It is a new one-penny sales tax dedicated solely for property tax relief.