ATLANTA — The Georgia Senate has approved legislation that would require local governments to cap property tax increases at the rate of inflation.

In 2024, voters approved a measure to limit property tax increases so they would not exceed the rate of inflation. However, a majority of local governments later opted out of the cap. Republican Sen. Chuck Hufstetler says his bill removes that opt-out provision.

“It should not have been in here to begin with,” Hufstetler said.

Hufstetler says allowing local governments to opt out has led to steep increases for some homeowners.

“We’ve seen the damages done to our homeowners by having opt out in there,” he said. “Seventy percent of the citizens out there in Georgia didn’t get the benefit of this cap on their homeowner taxes because the government did opt out.”

But Senate Democratic Leader Harold Jones raised concerns about the impact the change could have on local services.

“So we’re not going to fund our police, we’re not going to fund our schools, and then at the same time we’re going to raise people’s sales tax,” Jones said.

The bill now heads to the Georgia House, which has proposed its own property tax legislation, including a measure to do away with homestead property taxes by 2032.

WSB Radio’s Jonathan O’Brien contributed to this story.