ATLANTA — On Election Day, a majority of Georgia voters chose more than just who they wanted for the next President of the United States.
In addition to picking former President Donald Trump to return to the White House in January, more than 50% of Georgia voters also approved three ballot measures related to taxes and property values.
As a result, homeowners and other Georgians will benefit from a broader homestead exemption and will also see the creation of a Georgia Tax Court.
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Here are the 3 tax-related ballot questions Georgia voters approved
Constitutional Amendment 1:
Shall the Constitution of Georgia be amended so as to authorize the General Assembly to provide by general law for a state-wide homestead exemption that serves to limit increases in the assessed value of homesteads, but which any county, consolidated government, municipality, or local school system may opt out of upon the completion of certain procedures?
Constitutional Amendment 2
A RESOLUTION proposing an amendment to the Constitution so as to vest judicial power of the state in the Georgia Tax Tribunal; to provide for venue and jurisdiction of the Georgia Tax Tribunal; to provide for concurrent jurisdiction with superior courts; to provide for judges of the Georgia Tax Tribunal and their qualifications; to provide for vacancies; to provide for related matters; to provide for the submission of this amendment for ratification or rejection; and for other purposes.
Referendum A:
A BILL to be entitled an Act to amend Article 2 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to property tax exemptions and deferral, so as to increase a statewide ad valorem tax exemption for tangible personal property; to specify the terms and conditions of the exemption and the procedures relating thereto; to provide for applicability; to provide for related matters; to provide for compliance with constitutional requirements; to provide for a referendum, effective dates, and automatic repeal; to repeal conflicting laws; and for other purposes.
Here’s what the ballot items will do
Constitutional Amendment 1:
Constitutional Amendment 1 allows municipalities to put a limit on how much a home’s value can be increased each year due to inflation.
That means that the value of a home will not increase more than the rate of inflation, as reported by the Consumer Price Index from the U.S. Bureau of Labor Statistics.
As written, the amendment works through a two-fold setup.
The value of a homestead, where you actively reside, will not be increased more than the inflation rate each year.
Additionally, it creates a new option for local sales taxes, which would act as a supplement the collection of property taxes. Even though voters approved the amendment, local municipalities are still able to opt-out of the exemption, but must vote to do so by March 2025.
The municipalities and local government officials the amendment is focused on include county commissions, consolidated government officials, elected city leaders like council members or mayors if they have the power to change tax rates and Board of Education members.
Constitutional Amendment 2:
Constitutional Amendment 2 will create the Georgia Tax Court for tax-related court cases. Now passed, the Georgia Tax Court would be in the judicial branch and replace the Georgia Tax Tribunal, which is currently part of the executive branch.
The Georgia Tax Court, once created, will rule on cases involving tax disputes between businesses and the Georgia Department of Revenue. Currently, all appeals go through the Fulton County Superior Court, which is not an appellant court. The move is expected to take some of the load off of the current court docket.
Like the current Georgia Tax Tribunal, judges for the Georgia Tax Court will be appointed by the Governor. The appointments will be subject to approval by majority votes in the Georgia Senate Judiciary Committee and the Georgia House Committee on Judiciary.
Referendum A:
Now passed, Referendum A gives Georgia property owners more wiggle room when it comes to filing exemptions on their property taxes.
Currently, the Georgia personal property tax exemption caps at $7,500 for ad valorem payments. As a result of the referendum, the value limit will be increased to a $20,000 exemption.
According to the legislative text for the item, “All tangible personal property of a taxpayer, except motor vehicles, trailers, and mobile homes, shall be exempt from all ad valorem taxation if the actual fair market value of the total amount of taxable tangible personal property owned by the taxpayer,” up to $20,000.
Lawmakers wrote in the bill that it was intended to ensure “the payment of ad valorem taxation certain tangible personal property on which the tax due does not exceed the reasonable cost of administering and collecting the tax.”
The provision will take effect in the following tax year, beginning Jan. 1, 2025.
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