Peachtree City approves resolution to pursue LHOST property tax relief referendum

Peachtree City has taken a formal step toward giving homeowners a potential break on their property tax bills — approving a resolution to pursue a Local Homestead Option Sales Tax referendum, according to fayette-news.net.

The city council passed a resolution setting the stage for what would be a 1% local sales tax designed to generate revenue specifically for homestead property tax relief on owner-occupied homes. But the road to a voter referendum is neither short nor guaranteed.

The LHOST mechanism was authorized by Georgia Senate Bill 33, signed by Gov. Brian Kemp, which also caps increases in county valuations of owner-occupied homes at the rate of inflation — a direct response to rapidly rising property values that have been pushing tax bills higher across the state.

A 2026 attempt to fast-track LHOST referendums statewide collapsed during a special session of the Georgia General Assembly. Republicans held majorities in both chambers but needed a two-thirds supermajority to pass the local enabling legislation — a threshold Democrats blocked. House Speaker Jon Burns, R-Newington, declared the legislation dead for the session after a failed motion to reconsider. That defeat means no LHOST question appeared on a November 2026 ballot anywhere in Georgia.

The path forward runs through the General Assembly again. Under the LHOST framework, local legislation must be approved by the state legislature before a referendum can be placed on a local ballot. If that hurdle is cleared — potentially during a future General Assembly session — voters could then weigh in. If voters approve, the sales tax would begin being collected on January 1 of the following year, with property tax relief not appearing on tax bills until the fall after that, according to gainesvilleceo.com.

The tax, if ultimately enacted, would apply broadly — covering food, alcohol, and motor fuels up to $3 in retail sales price per gallon, among other products and services. LHOST funds would be distributed by a formula that exempts an equal amount of assessed value from homesteaded properties only, meaning the relief targets owner-occupied homes rather than all property.

Peachtree City officials and residents should also be aware of a parallel option: the Flexible Local Option Sales Tax, or FLOST. Unlike LHOST, FLOST does not require state legislation — it can be triggered by agreement between a county and cities representing a majority of the municipal population. FLOST provides millage rate reductions for all property, not just homesteads, and relief reaches taxpayers faster once approved. The two taxes cannot be combined, and the financial effects of choosing one path over the other — or neither — will vary by community.

Whether the LHOST question returns to the General Assembly in 2027 remains uncertain, according to multiple outlets. For now, Peachtree City's resolution signals intent — but voters won't have the final say until state lawmakers act first.

Why it matters — Peachtree City homeowners could eventually see property tax relief through a voter referendum, but the outcome depends on state legislators first clearing a hurdle they failed in 2026 — making the city's resolution a starting gun, not a finish line.

Reported by fayette-news.net, wnegradio.com, citizenportal.ai, accg.org, peachtree-city.org, 921wlhr.com, gainesvilleceo.com