Property Tax Reform - What you need to know

As of April 2026, Senate Bill 33 has emerged as one of the most closely watched pieces of legislation affecting homeowners and the real estate market in Georgia. The bill now sits on the Governor’s desk, with a decision expected by early May. At its core, SB 33 is an attempt to address a growing concern: property taxes rising faster than people can keep up with. SB 33 seeks to address this issue by capping annual increases in property tax assessments at the rate of inflation

Over the past several years, home values across Georgia have increased significantly. As assessed values climb, so do property tax bills—often at a pace that outstrips inflation. For many homeowners, especially those on fixed incomes, this has created a sense of “taxation by valuation,” where they are effectively penalized for market conditions beyond their control. This gap between inflation and property tax growth is a key driver behind the push for reform.

SB 33 Overview for Real Estate Professionals (April 2026)

Senate Bill 33 is a high-profile property tax reform measure aimed at addressing rapid increases in home values across Georgia. The bill has passed the legislature and now awaits action from the Governor, who has until early May 2026 to sign or veto it.

What the Bill Does

SB 33 would:

• Cap annual property tax assessment increases at the rate of inflation, limiting how quickly taxable values can rise.
• Require all local governments and school districts to participate, creating statewide consistency.
• Allow a Local Homestead Option Sales Tax (LHOST) of up to 1% to offset reduced property tax revenue.
• Increase transparency, requiring voter approval for certain property tax revenue increases.

Why It Matters to REALTORS®

• Provides more predictability for homeowners, which can improve long-term affordability and client confidence.
• May slow the pace of rising tax bills, even in rapidly appreciating markets.
• Could shift tax dynamics, impacting buyers, sellers, and investors differently depending on property type and location.

Key Debate: Pros & Cons

Supporters argue:

• Protects homeowners from being taxed out of their homes due to rising values.
• Creates stability and predictability in property tax bills.
• Broadens the tax base through sales tax, capturing revenue from visitors.
• Ensures uniform protections statewide, rather than optional local measures.

Opponents argue:

• Could reduce funding for public schools, which rely heavily on property taxes.
• Shifts burden to sales taxes, disproportionately affecting lower-income residents and renters.
• May create market imbalances, benefiting long-term homeowners more than new buyers or investors.
• Raises legal concerns about how the bill originated.

Inflation vs. Property Tax Growth (Georgia)

While exact figures vary by county, the general trend shows property taxes rising faster than inflation:

*Estimates based on statewide trends; actual increases vary significantly by jurisdiction due to reassessments and millage rate changes.

Key takeaway: Property tax increases in many parts of Georgia have outpaced inflation, which is the core issue SB 33 is trying to address.

Bottom Line

SB 33 represents a major shift in how property taxes could be managed in Georgia. For real estate professionals, it introduces:

• Greater certainty for homeowners
• Potential changes in affordability calculations
• New considerations around local tax structures and buyer impact