On March 5, House Bill 1116 was passed by the Georgia House of Representatives. This bill was a product of Republican Georgia state Rep. Shaw Blackmon’s efforts to reduce property taxes by 75% from 2027 to 2037, in the name of tax relief for residents. The bill has yet to pass the state senate; if it proceeds, it would be on the ballot come November, as it did not achieve the supermajority in the House. This bill should not be passed, as it will have detrimental effects on public school students.
HB 1116 works exclusively to decrease property taxes, substituting the gap with a proposed introduction of the new Local Homestead Option Sales Tax (LHOST). The bill dictates that a one percent sales tax would be enacted to reduce or eliminate property taxes. The LHOST tax revenue is required to cover any property tax, meaning lower property taxes will become more feasible for local governments. Although the tax is technically optional, in any county with sales taxes already in place, the conversion to LHOST happens automatically, meaning the optional clause in the bill is simply for show. Counties truly have no choice in the matter of enacting LHOST taxes.
The bill does include a three percent increase cap on any and all property taxes in Georgia, preventing local governments from adopting a LHOST tax structure while maintaining – and even increasing– the high property tax rate, thus exploiting the bill in favor of generating additional revenue. The three percent cap also acts as an incentive to enact new LHOST taxes; because when property taxes are limited, local governments are forced to turn to the tax method HB 1116 suggests. The three percent cap is a limitation disguised as a safety net.
Statewide property taxes raised $19.9 billion in 2024. Of that, 56% ($11.1 billion) was allotted to funding public schools in Georgia. The $11.1 billion makes up 72% of schools local revenue, demonstrating property tax’s dominance over the funding tools used by public schools because of its efficiency and reliability. Sales and income taxes are more susceptible to economic instability, as prices and company success varies by the year. Property taxes, however, will remain constant; businesses and citizens are less likely to fluctuate through locations when compared to pricing inconsistencies. Additionally, Georgia schools averaged $2,200 per student less than the national average, meaning the change in tax funding will only widen the financial disparity for Georgia students.
When examining the reduction of property taxes and its effect on schools in other states, the destructive impacts are clear. When property tax revolts took place in Oregon during the early 1990s, student-teacher ratios increased significantly; this pattern continued in various states as well. Larger class sizes – which is already an issue at many Atlanta Public Schools, such as Midtown – often results in worsening instructional effectiveness and dwindling student achievement. Historically, public schools with property tax cuts have struggled with declining math and reading literacy. This lowering quality of education is likely to disproportionately affect impoverished children, as they do not have disposable income to spend on tutors and other educational tools.
Cuts in funding are also likely to lead to minimizing student resources, such as councilors, social workers, nurses and librarians – despite the fact that 84% of Americans credit catching early signs of mental health conditions to educational staff. When taking these professionals out of schools, it endangers both students suffering from various health concerns, as well as their peers.
Many Georgia Republicans argue that an alteration to the current tax system is necessary to make homeownership more affordable. Although the housing market – and therefore, property taxes – have escalated drastically, homestead exemptions are available to Georgia residents that qualify. A $2,000 exemption is available statewide, in addition to other local or regional resources, such as the Homeowner Tax Relief Grant – which is a single use exemption with a value up to $18,000 to be used towards property taxes. $850 million has been allotted to this program at the beginning of 2026. These exemptions are available to low-income seniors, disabled veterans and surviving spouses of disabled veterans, officers and firefighters. These groups are often sourced as the reason for property tax cuts by various politicians.
The implications of this bill are clear; property taxes will be cut and schools will suffer from reduced funding toward vital academic and student resources. This will eventually result in lower student test scores and fewer college admissions. It is crucial that the Georgia Senate does not pass this bill without drastic alterations, and if they do, it will become Georgia residents responsibility to uphold the values of education come election day.
