Property Tax or Sales Tax? The Lesser of 2 Evils

During the special session at the Georgia General Assembly, Georgia Democrats voted against property tax referendum legislation that Republicans introduced.

If passed, this legislation would grant citizens in localities the opportunity to vote on slightly increasing the sales tax in exchange for a lower property tax.

House Republican leaders have emphasized the need for a lower property tax, given the increasing costs and the need to support Georgians who are struggling to make ends meet.

In a comment made to the Daily Signal, state Rep. Chas Cannon, R-Moultrie, stated that a slight increase in sales tax will best serve Georgians.

“You can broaden the base of taxpayers and lower the rate for everybody,” he said. “We’re trying to make things easier and more affordable, and lowering property taxes by switching to a sales tax will let folks keep more of their money and spend it the way they want to spend it.”

According to WABE, state Rep. David Wilkerson, D-Powder Springs, voiced his opposition to the property tax referendum, stating, “This would have been a new sales tax that would have applied to food, would apply to everyday purchases, and so you don’t create relief by creating a tax.”

State Rep. Shaw Blackmon, R-Bonaire, said that property taxes have risen more than 50% in certain localities. In a statement made to the Daily Signal, he said, “As you look and talk to our constituents across the state, one of the biggest complaints is skyrocketing property taxes.”

While Georgia representatives have noted the burden that property taxes have had on their constituents, this legislation, if enacted, would allow the state’s localities to implement a penny sales tax in exchange for a lower property tax.

Blackmon listed multiple localities where the sales tax would generate millions to offset property taxes. In Gwinnett County alone, the penny tax would bring in $250 million.

Additionally, if passed, the property tax referendums that are being developed would support localities across the state, including Fannin County and Lowndes County.

In May, Gov. Brian Kemp approved Senate Bill 33, permitting local governments to increase the penny tax to compensate for a decrease in property tax through means of a homestead tax exemption. The penny tax is also referred to as the Local Homestead Option Sales Tax.

It is possible that negotiations and debate for these referendums will continue indefinitely. State Rep. Scott Hilton, R-Peachtree Corners, noted that the referendum, if passed, will give Georgians the opportunity to choose what best suits them and their needs.