Property Tax Grants Approved for This Year, Doubtful for Next

Governor Sonny Perdue signed House Bill 143 Tuesday, which funds the $428 million in homeowners' tax relief grants for this year. The grant is worth around $200 to $300 per household.

The governor said cash from the federal stimulus package will help fund the program.

But House Bill 143 also ties future grants to the state's revenue figures. Next year's grants will likely not be funded, especially with Perdue's announcement today that he's telling state agencies to cut another 1% from their budgets.

In signing the bill, Perdue says, "We cannot budget based on the unknown."

Perdue also lowered this year's revenue estimates by an additional $450 million. This puts Georgias budget deficit close to $2.7 billion.

Homeowner's Tax Relief Bill Clears Senate, Awaits Governor's Signature

The State Senate decided today not to reconsider a bill that narrowly passed the chamber Friday. House Bill 143 would guarantee that counties get the $438 million in homeowner's tax relief grants from the state. Governor Sonny Perdue wanted to cut those grants from this year's budget. While some senators worry that wording in the bill could be deemed unconstitutional, the Senate voted 23-32 to not reconsider it. The bill now goes to Gov. Perdue's desk for his signature.

Homeowners Could Get Tax Relief... For Now

The state House passed a bill today that would prevent homeowners from receiving delinquent tax notices for now… But it almost ensures higher property tax bills in the future.

Governor Sonny Perdue wants to cut $428 million in Homeowners' Tax Relief Grants this year to help fill a $2.2 billion budget shortfall.

But in a vote mostly along party lines, House Republicans want to make sure the state makes good on its promise to fund the grants... for now.

House Bill 143 also ties the relief grant to the state’s budget in the future. If the state has a deficit, there wouldn't be a grant to homeowners.

Republican House Majority Leader Jerry Keen says the bill will fix the homeowners' tax grant problem once and for all.

“We are trying for the first time to bring some reason, some common sense, but more importantly accountability and predictability to this system.”

But Democratic Representative Doug McKillip says the state should make good on its word to continue to provide the grants, which range from $200-$300.

“Ladies and gentlemen, a promise made is a debt unpaid… We owe the $265 to every one of them for ‘08, we must give it to them for ‘09… It is what we need to do…"

The bill now goes to the Senate for consideration.