From Tax Commissioner Andy Chastain

Georgia Senate Bill 33, which contains recently passed legislation affecting homestead property tax, is currently awaiting Gov. Kemp’s signature and some of this legislation will become effective for the 2026 tax year.

This bill mandates a statewide floating homestead exemption that caps the yearly assessment increases to the higher of 3% or the rate of inflation (CPI). In Upson County’s case, this already applies to the County & City’s tax digest since they both opted in HB581 last year and it only applies to their M&O millage rate. This year it will be effective for the School’s tax digest as well. Keep in mind, this part of the legislation does not guarantee homestead property taxes will be lower. Each governing authority sets their own millage rate based on their budget needs which in turn determines the amount of taxes.

If a county has a FLOST, which we do in Upson, funds collected through July 1st of each year will be credited on that year’s tax bills. HB581 previously mandated FLOST be applied to the subsequent year’s tax bills after a full year of FLOST had been collected. This is subject to interpretation based on the FLOST intergovernmental agreement though.

Creates a new LHOST (Local Homestead Option Sales Tax) of an additional .01 cent solely for the purpose of rolling back homestead property tax. The intent is to eliminate or nearly eliminate all homestead taxes. This must be approved by local referendum and can start 1/1/28. In Upson’s case, we’re already at the max of 9% sales tax so an LHOST would not be available and it’s yet to be determined if FLOST can be converted to apply to homestead tax only. If it could, it would be much more effective for lowering homestead taxes.

The 2026-2027 state budget includes money for the Homestead Tax Relief Grants; similar to what we received 3 years ago. This should provide approximately $400-$500 in homestead tax relief this year on tax bills.

Also awaiting the Governor’s signature is SB 566 which removes the estimated rollback millage rate from the notice of assessment. The Governor has 40 days after the conclusion of the session to sign or veto bills, which in this case, could cause a delay in sending out assessment notices this year.