The one-time Property Tax Relief Grant is a budget proposal by Governor Brian Kemp to refund $950 million in property taxes back to homestead owners in the Amended Fiscal Year 2023 budget. This proposal became law when Governor Kemp signed HB 18 on March 13, 2023. The Property Tax Relief Grant may also be known as the Homestead Tax Relief Grant.
With $950 million appropriated to the Department of Revenue in the Amended Fiscal Year 2023 budget, the Department of Revenue will be able to reduce the assessed value of Georgia homesteads by $18,000 (Ga. Const. Art. VII, §IIA, Para. I).
No. The Property Tax Relief Grant only applies to properties claimed as a homestead by a Georgia taxpayer filed prior to the April 1 deadline. Homesteads where the property owner does not owe property taxes will not receive a Property Tax Relief Grant.
Georgia also offers a Floating Inflation-Proof Exemption for those over 62 based on natural increases in a homestead’s value. Because some homestead owners do not owe taxes on their homestead, some of these homestead owners will not qualify for the Property Tax Relief Grant.
The Property Tax Relief Grant program was created by the Governor and the General Assembly in the late 1990s and discontinued following the 2008 Recession. Following FY 2009, the General Assembly can only appropriate Property Tax Relief Grants to local taxing authorities if certain limitations are met. Those limitations prohibit Property Tax Relief Grants unless estimated revenues for the current fiscal year exceed estimated revenues available for appropriation as enumerated in the budget of the most recent fiscal year in which Property Tax Relief Grants were appropriated by 3 percent plus Consumer Price Index inflation as reported by the Bureau of Labor Statistics of the United States Department of Labor. Due to the State’s excess reserves, these limitations have been met and the Governor and General Assembly can appropriate the Property Tax Relief Grants.
It is recoverable in the same manner as other delinquent ad valorem taxes. Likewise, local taxing authorities must provide the property tax relief grant if one was erroneously denied.
The Property Tax Relief Grant applies to all millage rates except for bond millage rates and tax allocation district millage rates.
O.C.G.A. §36-89-1 et seq.No. The Property Tax Relief Grant is shown as a reduction of your property tax bill. You will see savings on your bill, but you will not receive a check in the mail or a payment via direct deposit.
No. Georgia law requires individuals to make an application for homestead between January 1 and April 1 to receive a homestead exemption for the current tax year. Any application filed after April 1 is applied to the following tax year.
Tax commissioners provide the Department of Revenue with a copy of their tax digest in a computer readable format. The requirements for this file are found in Regulation 560-11-2-.57. Additional instructions and guidance will be provided by the Department of Revenue as the process is finalized.
Local taxing authorities must provide the total number of qualified homesteads, the local millage rates, and the total amount of credits allowed on the tax bills.
The Department of Revenue remits the homeowner tax relief grants within 60 days of certification.The money is remitted back to the Department of Revenue by the local taxing authority. The Department of Revenue sends the money back to the State Treasury.
No. The Department conducted an extensive review of statute, regulation, case law, and past practice. Following this review, the Department concluded it was most prudent to exclude special tax districts created after 2004. This is consistent with the law and the Department’s administration of the Homestead Tax Relief Grant in 2005, 2006, 2007, and 2008. Regulation 560-11-2-.57 defines county millage rate as follows…
(c) "County millage rate" means the net ad valorem tax millage rate, after deducting applicable rollbacks, levied by a county for county maintenance and operations purposes and applying to a qualified homestead, but shall not include any ad valorem tax millage rate levied for purposes of bonded indebtedness or any ad valorem tax millage rate levied within a special tax district that was not created or reported on the 2004 ad valorem tax digest certified to and received by the State Revenue Commissioner on or before December 31, 2004. Similarly, Regulation 560-11-2-.57 defines municipal millage rate as follows:
(j) "Municipal millage rate" means the net ad valorem tax millage rate, after deducting applicable rollbacks, levied by a municipality for maintenance and operations purposes and applying to a qualified homestead, but shall not include any ad valorem tax millage rate levied for purposes of bonded indebtedness or any ad valorem tax millage rate levied within a special tax district that was not created or reported on the 2004 ad valorem tax digest certified to and received by the State Revenue Commissioner on or before December 31, 2004.
For further questions, please contact Local Government Services Division Staff at [email protected] .
As of February 1, 2023, every local government is in compliance with DCA. Eligibility for the Property Tax Relief Grant will be determined based on compliance on the date that the AFY 2023 budget becomes law. If a local government is out of compliance on that date, the Department will utilize its authority to require that savings are passed along to the homeowner. The Department will then send the Property Tax Relief Grant reimbursement to local governments once they are back in compliance.
No. The qualified local government statute applies to grants from the Georgia Environmental Finance Authority, the Department of Natural Resources, the Department of Community Affairs, and the OneGeorgia Authority. It does not impact grants from the Department of Revenue.
Eligibility for the Property Tax Relief Grant will be determined based on compliance on the date that the AFY 2023 budget becomes law. DOR intends to work closely with DOAA to ensure that all local governments are in compliance with O.C.G.A. § 36-81-7 in a timely manner to avoid any concerns or limitations under O.C.G.A. § 31-81-7(d)(5). If a local government is out of compliance on the effective date, there may be circumstances where the local government may request that the state auditor extend or waive the statutory deadlines for compliance. See O.C.G.A. § 36-81-7 (d) and (g).
The Property Tax Relief Grant applies to all millage rates except for bond millage rates and tax allocation district millage rates.
O.C.G.A. §36-89-1 et seq.The County Tax Digest Submission section is information for local county tax assessors, appraisers, and tax commissioners