Chairman Blackman outlines substitute to cap local sales tax, limit property tax growth and expand reserve guidance

Chairman Blackman summarized a multi‑component substitute for House Bill 1116 (LC 339902S) that would cap the local sales tax rate at 5% for cities and counties, limit annual ad valorem property tax increases to 3% or CPI with certain exceptions, and add provisions to strengthen truth‑in‑taxation notices including mailing notices to each parcel and enabling referendums twice a year.

Blackman said the substitute would also alter school reserve guidance (raising the option toward 25% from 15%), address a data center exemption and the General Assembly’s intent regarding property tax relief at the exemption’s expiration, and include duties to notify regarding homestead exemptions and back assessments. He described some cleanups and technical changes in the text.

A motion to approve the substitute was made and seconded and the committee approved it; the transcript shows voice approval rather than a recorded roll‑call tally.

The substitute advances to the supplemental calendar.