A bill currently under consideration in the Georgia Senate has the potential to increase demands on nonprofits across the state. We must act now to let our representatives know how this bill could affect their constituents and the nonprofits working for them every day.
Call to action: Reach out to your state senators today about HB 1116, which has passed the House, the Senate Finance committee, and is expected to reach the floor of the Senate for a vote by next week. As written, it could significantly constrain local government revenue – shifting service gaps onto communities and the nonprofits that serve them. A sample call/email script is provided below.
Summary of House Bill 1116: The Homeownership Opportunity and Market Equalization Act caps year-over-year property tax revenue growth for local governments at 3% or the rate of inflation. Additionally, it includes provisions intended to allow local governments to fund programs and services using sales taxes.
Why it matters to nonprofits: Property tax dollars help fund city services (police, fire, and public schools among them). Cutting those taxes increases the burden on local governments, forcing them to make up the difference using additional sales taxes – or else make cuts to services. Raising local sales tax can raise the cost of living in already struggling communities.
Both outcomes affect nonprofits by increasing demand for their services, raising the pressure to fill gaps, and shifting risk to nonprofits without corresponding funding.
Sample script
I’m reaching out as a nonprofit leader/partner in Georgia to express concerns about the impact of HB 1116 on local government revenue, capacity and community stability.
In its most recent iteration, the limitations of property tax revenue growth without sufficient flexibility to meet local community needs could shift service burdens onto nonprofits, many of which are already operating at or over capacity. I urge you to consider amendments that provide for the following considerations to protect our communities, residents and local nonprofit organizations:
- Include a nonprofit/community impact analysis before implementation
- Limit shifts to sales tax that disproportionately burden low-income households
- Adjust the cap for population growth and service demand, not just inflation
- Protect funding for essential services (public safety, education, human services) from being constrained by the cap
Thank you for your consideration of these impacts and for hearing my concerns.
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