The Georgia House of Representatives passed a measure Monday that would raise DeKalb County sales tax rates and also reduce county homeowners’ property tax bills.
The House voted 128-35 to approve the legislation, which now advances to the state Senate. DeKalb voters would have to approve the proposal in a referendum before it could take effect.
The bill would add a 1 cent per dollar sales tax in DeKalb, increasing the county's total sales tax rate to 8 percent. Called a special purpose local option sales tax, it would raise about $100 million a year for capital improvements.
The legislation would also use existing sales tax collections to offset more of residents’ property taxes.
DeKalb currently collects 1 cent per dollar for a homestead option sales tax (HOST), and most of that money is dedicated to shrinking homeowners’ property taxes, with the remainder distributed to city governments.
Under House Bill 215, all of that HOST money would go to homeowners.
“Residents in the cities will see a significant property tax reduction,” said the bill’s sponsor, Rep. Mike Jacobs, R-Brookhaven. “All of DeKalb’s legislators — Republican and Democrat; north, south, east and west — agreed this is how we’re going to address deficiencies of how HOST is allocated.”
For example, property taxes would decrease by $625 on a $300,000 home in Decatur, Jacobs said. On a $500,000 Decatur home, property taxes would drop $1,065.
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