HB 1102 Summary
What is the HOST Tax and how does it impact your taxes?
The HOST Tax is a 1 percent sales tax. It also requires that at least 80 percent of the previous year’s HOST revenue to be used for property tax relief for homestead properties, which directly reduces the county tax liability of homestead property owners in municipalities and the unincorporated part of the county. Up to 20 percent of the revenue can be used to fund infrastructure improvements. Properties eligible for county homestead exemptions are also eligible for HOST property tax relief. County homestead properties are the primary, non-commercial residences of homeowners, which includes single-family homes and condominiums. This means that commercial properties, such as rental apartments and business establishments do not qualify for property tax relief from HOST revenues. The value of the HOST tax reduction varies by taxpayer with higher-valued homes or homes facing higher millage rates experiencing larger tax reductions. The reduction in taxes for each homestead property is equal to the net county tax liability of the property multiplied by the HOST credit rate. The HOST credit rate equals the ratio of sales tax receipts from the prior year to the value of the county homestead property tax revenue, multiplied by one minus the capital factor.
How will this Petition and HB 1102 change the HOST TAX?
By signing this Petition and triggering a Special Election to enact HB 1102 a 1 percent sales tax will still be collected with 1 percent of the taxes collected going to the State for collecting and administering the account and 99 percent of the previous year’s HOST revenue to be used for property tax relief for homestead properties.
Rockdale County is recommending only a 60 percent credit this year but if HB 1102 becomes law as the result of this petition process being successful that should increase the credit to 75 percent or more.
In Simple terms this Petition and Legislation will reduce the Dollar amount you the taxpayer will Pay in Property Taxes.