Every school district in the Athens area—along with about two-thirds of school districts in Georgia—has opted out of capping property tax increases at the rate of inflation.
Last year, legislators approved placing a constitutional amendment on the ballot asking voters to support the measure, which passed. Citing their own rising expenses, local officials said the tax cap could force them to forgo revenue they might need in the future.
Now, state lawmakers are pushing local governments to reconsider the opt-out and agree to limit how much of a home’s increasing value can be taxed. A bill recently approved in the Georgia Senate would give districts that previously exited the program a chance to change their minds.
As a concession, school districts that accept the cap would be exempt from paying sales taxes on construction materials. Local governments and school systems that choose to opt out of the tax exemption this year would be allowed to opt back in annually through 2029.
House Bill 92 now returns to the House to weigh in on the Senate’s changes.
