Fulton County lawmakers are proposing a huge tax shift that would free folks who live in many of Atlanta's least valuable homes from paying property taxes.

Under the legislation, the homestead exemption in Atlanta would more than triple from $15,000 to $50,000 over five years.

Owners of homes valued at about $125,000 or less would eventually pay no property taxes. And, owners of homes two or three times as costly would probably also see substantial tax breaks.

The three bills, which would apply to Atlanta, Atlanta schools and Fulton County taxes, have broad support among advocates for affordable housing and those who want to protect in-town neighborhoods from gentrification. They say the measures will provide needed tax relief for many struggling to afford life in Atlanta.

They've already begun writing letters to state lawmakers urging their support.

"This is a fantastic idea," said John O'Callahan, executive director of Atlanta Neighborhood Development Partnership, a group that tries to help provide affordable housing. "It's apparent we are losing existing (low-income) residents at an alarming rate. Many families are struggling just to hang on."

However, business interests, landlords and owners of some higher-end residential properties will end up paying more to make up the losses. How much more will depend on growth in the tax digest during the five-year phase in.

Sam Massell, president of the Buckhead Coalition, said the proposed tax shift would be opposed by "the business community in general."

"It sounds nice to cut taxes until you see how sharp that knife is. I wonder if they've thought it through. This does not sound like an answer to the complaints about increasing costs of government," Massell said.

Local government officials are lining up against the bill, complaining it will rob them of cash and force them to raise tax rates to compensate.

Atlanta officials estimate they will lose nearly $20 million a year when the phase in is complete. County officials estimated schools would lose another $39 million and Fulton County would lose $50 million.

"This is a serious piece of legislation with far reaching consequences," said Patrick O'Connor, Fulton County finance director. LaChandra Butler Burks, chair of the school board, sent a letter to lawmakers saying the loss of revenue "would decimate the academic program now offered by APS."

"Therefore, we respectfully ask you to reconsider the plan to increase the homestead exemption," Butler wrote. "The quality education our students deserve can only be achieved with adequate funding."

Fulton County manager Zachary Williams asked the Board of Commissioners to oppose the bills. Atlanta's lobbyist, Megan Middleton, said the city is opposed as well.

"We understand what they are trying to do but its about the revenue," she said.

The bills as proposed would have a profound impact on taxpayers with lesser valued homes.

The owner of a $200,000 home would pay about $3,372 without any exemption. The current homestead exemption cuts that bill to about $2,740. The proposed legislation would drop the tax liability to $1,265 over five years.

The sponsor, state Rep. Margaret Kaiser (D-Atlanta), said that is what lawmakers intended. She said they also wanted to help homeowners struggling to pay their tax bills from facing foreclosure.

"We probably should have increased homestead to $50,000 15 years ago. We've done a disservice to our homeowners."

It's been 15 years since Fulton legislators gave voters the chance to change the homestead exemption. These three bills would go before voters in November and take effect in 2009, if approved.

Republican Rep. Edward Lindsey of Atlanta is also supporting the bills. The effort, along with other reforms proposed, help "restore equity in the property tax system," he said.