Template-type: ReDIF-Paper 1.0

Author-Name: Lakshmi Pandey
Author-Workplace-Name: Public Finance Research Cluster, Andrew Young School of Policy Studies, Georgia State University
Author-Workplace-Email: lpandey@gsu.edu

Author-Name: David L. Sjoquist
Author-Workplace-Name: Public Finance Research Cluster, Andrew Young School of Policy Studies, Georgia State University
Author-Workplace-Email: sjoquist@gsu.edu

Title: Georgia’s New Floating Ad Valorem Homestead Exemption

Abstract: This report analyzes Georgia's 2024 floating homestead exemption (FHE), which caps annual increases in homestead property assessments to the inflation rate. Despite overwhelming voter approval (62.9 percent) of the constitutional amendment in November 2024 - with support in every county - a unique opt-out provision led over one-third of counties, cities, and school districts to reject the exemption. School districts opted out most frequently, likely due to greater challenges replacing lost revenue. The analysis details the FHE's structure, examines jurisdictions opting out and factors influencing this decision, and explores the broader implications of assessment growth limits. The conclusion highlights the policy's tension and potential future responses, including voter pressure, state legislative action, local fiscal adaptations, or demands for state aid.

Length: 24 pages

Creation-Date: 2025-07

File-URL: https://cslf.gsu.edu/files/2025/07/cslf2501v2.pdf
File-Format: application/pdf

Handle: RePEc:ays:cslfwp:cslf2501