Chattooga County voters have approved the implementation of a new Floating Special Local Option Sales Tax (FLOST), marking a significant shift in local tax allocation designed to provide direct relief to property owners.

The measure, approved via referendum this month, will introduce an additional one-cent (1%) local sales tax exclusively dedicated to rolling back property millage rates. Chattooga County joins the first wave of Georgia jurisdictions utilizing this new tax mechanism, which was authorized statewide earlier this year under the “Save Our Homes Act” (HB 581).

Chattooga County Commissioner Andy Allen confirmed the timeline for implementation.

“This is a decisive victory for our residents who have been burdened by rising property assessments,” Commissioner Allen stated. “The FLOST achieves two major goals: it shifts some of the tax burden away from property owners through consumption, and it helps the county recover revenue lost due to the new statewide property value caps.”

The new 1% sales tax will go into effect on January 1, 2026, meaning property owners will see the resulting tax relief reflected on their bills later that year.

How the FLOST Mechanism Works

The Floating Local Option Sales Tax is a consumption tax, meaning everyone who makes a taxable purchase within Chattooga County—including residents, commuters, and tourists—will contribute the extra penny per dollar.

Key features of the new tax include:

• Exclusive Purpose: Unlike other sales taxes used for general government operations or capital projects, FLOST revenue is legally restricted. It must be used solely to reduce property taxes (ad valorem taxes) by lowering the millage rate applied to homes and businesses.
• Duration: If implemented, the FLOST is collected for a fixed term of five years. Any continuation beyond that timeframe would require further local legislative action and a new voter referendum.
• Sales Tax Rate Increase: When the FLOST takes effect, the cumulative sales tax rate in Chattooga County will increase by 1%.

Understanding the term “Floating”:

The term “floating” refers to its direct connection to the new homestead exemption established by HB 581.

Under this new state law, the assessed value of a homesteaded property for tax purposes is now capped. The taxable value can only increase by the rate of inflation (Consumer Price Index), regardless of how much the property’s actual market value might surge. This “floating” cap provides a vital shield for homeowners against rapidly rising tax bills driven by soaring real estate markets.

While the cap offers stability for homeowners, it can potentially decrease the revenue collected by local governments. The FLOST is the tool counties and cities can use to offset that potential revenue shortfall while simultaneously delivering guaranteed tax relief.

Prior to reaching the ballot, Chattooga County and its participating municipalities had to agree upon an intergovernmental agreement detailing how the revenue generated by the FLOST would be distributed, fulfilling the prerequisites established by the state law.

Local officials anticipate that the shift to reliance on consumption taxes will provide a more sustainable and equitable funding source for community services, alleviating pressure on elderly residents and others on fixed incomes who have struggled with consecutive years of property tax hikes.