SB 33 Vote Explainer: Local Homestead Option Sales Tax (LHOST)

Quick Take

I voted NO on SB 33 because I don’t believe Georgians should be asked to vote on major tax legislation that lawmakers haven’t had adequate time to read, and because this bill raises serious constitutional and policy concerns. While it promises property tax relief for some homeowners, it provides no guarantee that relief will actually occur, and Georgians who rent their homes would simply pay higher sales taxes without receiving any benefit.

Why It Matters

Tax policy should be transparent, constitutional, and fair.

Whether someone supports sales taxes or property tax relief, Georgians deserve confidence that major tax legislation has been carefully vetted, follows our Constitution, and delivers the benefits it promises.

I could not support a bill that failed those tests.

Key Facts

SB 33:

• Creates a new optional Local Homestead Option Sales Tax (LHOST) of up to 1%.
• Intended to fund local homestead property tax exemptions for homeowners.
• Requires local voter approval before taking effect.
• Includes numerous additional changes to Georgia property tax laws and related statutes.
• Provides no direct tax relief for renters, who would still pay the additional sales tax.
• Contains no cap preventing local governments from increasing future property tax millage rates.

My Perspective

We were asked to vote on a massive bill without adequate time to review it.

This was the final bill considered on Sine Die, around 1:00 a.m. with no time provided to review it. It was lengthy, complex, and contained major changes to Georgia’s tax laws.

Regardless of whether someone supports or opposes the policy, legislators have a responsibility to understand what we’re voting on. We simply did not have sufficient time to carefully review a bill of this size before casting our votes.

I believe the bill violated Georgia’s constitutional Origination Clause.

The Georgia Constitution requires that bills raising revenue originate in the House of Representatives.

SB 33 originated in the Senate. While supporters argued that much of the language previously appeared in House Bill 1116, I do not believe that cures the constitutional problem.

It also raises concerns under the Constitution’s Reconsideration Clause.

The Senate had already considered and rejected the same language in House legislation (HB 1116).

The Georgia Constitution requires a two-thirds vote to reconsider legislation that has already been decided. In my view, taking the same language, placing it into a Senate bill, and moving it forward without satisfying that constitutional requirement undermines the procedural protections our Constitution provides.

Constitutions exist to establish rules that everyone must follow—even when doing so is inconvenient.

The bill does not guarantee actual property tax relief.

Supporters describe this as a property tax relief measure, but the bill contains no meaningful limit on future millage rate increases by local governments.

That means a county could receive additional revenue from the new one-cent sales tax while later increasing its property tax millage rate. In that scenario, homeowners could see little or no lasting tax relief despite paying a higher sales tax. After the legislature introduced the FLOST sales tax a few years ago, we have seen some counties implement that new sales tax and raise millage rates so that no property tax relief was delivered. The same thing could happen here.

If we’re going to ask Georgians to approve a new tax, I believe there should be stronger safeguards to ensure the promised tax relief actually materializes.

Renters receive no benefit but still pay the tax.

Nearly one-third of Georgians rent their homes. This bill directs its benefits toward homeowners through homestead exemptions, while renters would still pay the additional one-cent sales tax on their purchases.

For many working families, that means paying higher taxes without receiving any corresponding reduction in their housing costs.