SB 33 Vote Explainer: Shifting City & County Property Tax to Shoppers

Quick Take

Sales Taxes are regressive, but I voted against this bill because it was just plain bad policy and is very likely unconstitutional.

Why It Matters

People hate property taxes. People hate property taxes even more nowadays because property values have been going up faster than normal and they are receiving larger property tax bills. SB 33 would allow counties and cities to levy a new sales tax, the revenues from which could only be used to offset homestead property taxes first, and other property taxes if any is left over.

This is not as much a "tax cut" as it is a "tax shift" from people who own their home to everyone else, especially those who rent their home.

Key Facts

SB 33:

• Establishes a new sales tax type, although it is a bill originating in the Senate. The Georgia Constitution requires all revenue generating bills to originate in the House.
• Creates a new LHOST penny, effective January 1, 2028.
• If adopted by city & county governments, revenues from the LHOST sales tax penny must be used to offset property taxes on homesteads. If anything is left over, revenues can be used to reduce other property taxes
• Adopting the LHOST sales tax requires a Local Act by the legislature and a ballot referendum.
• Does not limit millage rate increases by city and county governments who adopt LHOST.

My Perspective

Three main reasons why I voted against this bill:

Timing

Georgia House Republicans heard the "affordability" message when I won my special election in 2025, and they immediately translated it into tax cuts for wealthy people. They spent the entire 2026 session trying to eliminate homestead property taxes, which only benefits those with property.

SB 33 was a fraction of the original plan in HB 1116, but it contained the items that did not need a 2/3 vote in the House. It was the very last bill of the Session, passed at 1am on April 3 along party lines.

Constitutionality

SB 33 is a bill originating in the Senate and it creates a new sales tax type. Per the Georgia Constitution, all tax bills must originate in the House so it is likely unconstitutional.

Supporters will say that the language in SB 33 originated in the House, and they are right. The language in the final version of SB 33 was the exact same language that was in HB 1116, minus a few sections. But the Senate voted on HB 1116 and rejected it (even Republicans voted against it). The Georgia Constitution says that if a chamber rejects a bill, the same bill cannot be considered under the same or any other title without 2/3 approval by the chamber that rejected it. There was no motion to reconsider HB 1116, and SB 33 did not receive 2/3 of the Senate's approval.

Bad Policy

Republicans like to say that this bill, if enacted by local governments, will save a lot of money for people who own their homes. There are good reasons to be skeptical:

1. Doesn't touch school taxes - The vast majority of property taxes collected in Georgia go to local school systems. Revenues from the LHOST sales tax can only be used for county & city property tax relief
2. No limits on millage rate increases - There is nothing in this bill limiting the amount that a local government can increase it's millage rate. A few years ago, the GA legislature created the FLOST penny for property tax relief, and at least 2 jurisdictions have adopted the FLOST penny while increasing their millage rates, meaning no property tax relief was realized. The same thing can happen with LHOST.
3. Someone has to pay - replacing property taxes with sales taxes means that costs will increase for anyone who rents their home, while the property taxes that their rent covers will continue to increase. Even if school taxes were included and local governments were responsible, the LHOST penny is an increase for anyone who rents their home.

There are ways to reduce the need for local property taxes, but this bill was a shell game, shifting the cost of local government to those who are already struggling with increasing costs.