Kemp signs property tax relief and income tax cut; critics signal potential court fight

ATLANTA, Ga. (Atlanta News First) — Gov. Brian Kemp on Monday signed a pair of tax bills aimed at lowering Georgia homeowners’ costs and cutting the state income tax rate, setting up an immediate political clash over whether the changes will squeeze local budgets and whether lawmakers followed constitutional and procedural rules while passing the measures.

Supporters said Senate Bill 33 delivers long-promised relief as property tax bills climb across the state. Critics and some local leaders warned the plan could reduce revenue for schools, cities and counties and trigger court challenges.

At the signing, Kemp called the property tax legislation a response to years of public pressure.

“We have heard for years about the need for property tax relief in Georgia, and this bill delivers on that issue,” Kemp said.

Republican leaders said the package includes both near-term and long-term relief.

The income tax bill, House Bill 463, is set to take effect in January and would lower the state income tax rate below 5%, with a path to further reductions if state revenue remains strong.

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On the property tax side, House Speaker Jon Burns said Georgia homeowners should see a one-time $500 break and a 3% cap on assessment increases, designed to slow sharp jumps in fast-growing areas.

Burns also addressed concerns from local governments and education leaders about reduced revenue.

“We will not penalize our local governments,” Burns said.

For some voters, the issue is already driving decisions at the ballot box. Atlanta News First spoke with James Hodges as he voted. Hodges, who said he is on a fixed income, told the station that rising property taxes are nearing unaffordable.

“I don’t like the way things are going, so I’m trying to make sure things get changed,” Hodges said.

Opposition groups and Democrats signaled they may challenge the legislation, arguing the measures moved too quickly and may not have complied with requirements for how revenue bills must advance through the General Assembly.

Staci Fox of the Georgia Budget and Policy Institute criticized the process.

“The legislature said, ‘No, we don’t want to ask the people... We want to do it our way.’ It says a lot,” Fox said.

Additional objections surfaced in a letter from state Rep. Scott Holcomb, D-Atlanta, who argued Senate Bill 33 violated the Georgia Constitution’s requirement that revenue-raising bills originate in the House.

Holcomb wrote that the constitution “is not optional” and called SB 33 unconstitutional because it originated in the Senate.

A separate controversy centered on House Bill 463. Lawmakers said a version provided to House members late on the final day of the 2026 legislative session was missing a page listing tax exemptions that would be eliminated. Sen. Josh McLaurin, D-Atlanta, warned on the Senate floor that the discrepancy could raise “a live litigation issue” over whether House members received the correct version.

Burns defended the legislative process and said questions raised about a missing page during the bill’s movement through the legislature did not change the substance lawmakers ultimately considered.

“It was just a rush... an unfortunate missing page, but it was in the bill,” Burns said.

Kemp faces a Tuesday deadline to sign or veto remaining bills.