Your guide to the 3 statewide ballot questions

As Georgians head to the polls, they’ll be deciding on three important statewide ballot measures. One proposed constitutional amendment would cap property value assessments for a primary residence to limit tax increases, while another amendment would move the state’s tax court from the executive to the judiciary branch. The third question, a referendum, proposes increasing the personal property tax exemption for businesses.  

Here’s a breakdown of each question and what’s at stake.

PROPOSED CONSTITUTIONAL AMENDMENT 1

Provides for a general law state-wide homestead exemption that may differentiate among political subdivisions: “Shall the constitution of Georgia be amended so as to authorize the General Assembly to provide by general law for a state-wide homestead exemption that serves to limit increases in the assessed value of households, but which any county, consolidated government, municipality, or local school system may opt out of upon the completion of certain procedures?”

The Local Option Homestead Property Tax Exemption Amendment would limit any annual increases in the assessed fair market value of someone’s primary residence (homestead) to the statewide inflation rate (currently 2.1% in the Southeast). Doing so would limit property tax hikes. A “no” vote would leave property tax assessments in the hands of local governments.

The proposed change would be a constitutional amendment, making it difficult to reverse. If approved, the amendment would take effect on January 1, 2025. Local governments would have until March 2025 to opt out, if they prefer to continue handling homestead property assessments themselves.

Pros, cons and concerns

Proponents, mostly Republican lawmakers, say the measure will prevent “back door” property tax increases by local governments when property values rise, easing the tax burden on homeowners.

Critics, including some school boards, caution that capping taxable home values could reduce essential funding for public services, particularly schools, which rely heavily on property taxes. 

Kyle Kessler, policy and research director at the Center for Civic Innovation, warned that the cap disproportionately benefits wealthier homeowners. For example, capping the fair market assessment value of a $10 million home at the statewide inflation rate results in a much bigger property tax savings as the years go by than capping the assessment for a $100,000 home.

Potential impact on renters

Local property tax watchdog Julian Bene, like Kessler, cautioned that if local governments raise millage (taxation) rates on properties across the board to compensate for lost revenue, those tax hikes could be passed on to renters, leading to higher rents.

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PROPOSED CONSTITUTIONAL AMENDMENT 2

Provides for a state-wide Georgia Tax Court: “Shall the Constitution of Georgia be amended so as to provide for the Georgia Tax Court to be vested with the judicial power of the state and to have venue, judges, and jurisdiction concurrent with superior courts?”

This ballot measure asks if the current statewide tax court should be relocated from the state’s executive branch to the judicial branch. This change would require a constitutional amendment because the relocation would modify the state’s judicial powers. 

The Georgia Tax Tribunal, which handles tax disputes, currently operates as an administrative court within the Office of State Administrative Hearings. 

The change would instead make the state tax court part of the judicial branch. It would have what’s called concurrent jurisdiction with county superior courts, which means appeals would go to the Georgia Court of Appeals. Currently, all plaintiffs must appeal Tax Tribunal decisions to Fulton County Superior Court, because the tribunal is located in Fulton.

Why move the court?

The main argument is about separation of powers. Moving the tax court to the judiciary would make it independent of the executive branch, which includes the Department of Revenue. This would provide a more impartial setting for resolving disputes, says State Sen. Brian Strickland (R-McDonough), one of the referendum’s co-sponsors. “You actually get an independent court, versus an executive-branch court,” he said.

Cost and impact

The move is not expected to increase costs for taxpayers. The Tax Tribunal’s budget for fiscal year 2024 was $572,000, and it handled 488 cases in 2023. No fiscal note was attached to the enabling legislation, with costs deemed negligible.

There’s an added benefit: Relocating the court would relieve Fulton County from acting as the appeals court for the Tax Tribunal.

The measure has widespread bipartisan support, passing the Georgia House unanimously and facing just one “no” vote in the state Senate from Sen. Colton Moore (R-Trenton). Moore has argued that moving the court could expand government unnecessarily and create more barriers for citizens. In response, Strickland dismissed Moore’s concerns as “misguided.”

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STATEWIDE REFERENDUM QUESTION

Raises amount of tangible personal property tax exemption from $7,500.00 to $20,000.00: “Do you approve the Act that increases an exemption from property tax for all tangible personal property from $7,500.00 to $20,000.00?”

The personal property tax is an annual tax that counties charge based on a business’s possessions, such as equipment or inventory. It applies to businesses with a Georgia business license, but does not cover motor vehicles, trailers, or mobile homes.

This ballot measure asks voters if the tax exemption for business property should increase from $7,500 to $20,000. A “Yes” vote raises the exemption, while a “No” keeps it at $7,500.

Pros and cons 

Right now, businesses with property worth $7,500 or less don’t pay a personal property tax, thanks to an exemption passed in 2002. This proposal would increase that exemption to $20,000 to account for inflation.

Supporters, like the National Federation of Independent Businesses, argue that the tax break would reduce financial strain on small businesses and give them more money to reinvest and grow, benefiting the economy. The Georgia Municipal Association opposes the measure, warning it will reduce tax revenue that funds public services like schools and roads.

The enabling legislation, House Bill 808, received bipartisan support from the state legislature, passing the Georgia House of Representatives with a 125-42 vote and winning unanimous approval in the Senate.