Question 1

What is Project Zero?

Accepted Answer

Project Zero is the Effingham County Board of Commissioner's initiative to eliminate the county property taxes for qualifying homestead properties by 2028.

Question 2

What taxes will Project Zero eliminate?

Accepted Answer

Project Zero is intended to eliminate the property taxes levied by the Effingham County Board of Commissioners on qualifying homestead properties. If approved by the State of Georgia, this includes the county millage rates that fund County Maintenance & Operations (M&O), Fire Services, Public Works, Parks, Recreation, and Sanitation.

Question 3

Will my school taxes go away?

Accepted Answer

No. Project Zero does not affect property taxes collected by the Effingham County School District. The tools provided by the state legislature only permit the elimination of taxes levied by county or city governments.

Question 4

Will city property taxes be eliminated?

Accepted Answer

Potentially. Each city has to request separate referendum to eliminate their property taxes under the HOME act.

Question 5

Will non-homestead properties see any property tax relief?

Accepted Answer

Yes. While Project Zero is designed first and foremost to eliminate county property taxes for qualifying homestead properties, the County anticipates that the Local Homestead Option Sales Tax will generate more revenue than is needed to achieve that goal. If excess revenue is available, it will be used to reduce the property tax rates on non-homestead properties. While the exact amount of future tax relief will depend on sales tax collections, the County expects businesses, rental properties, agricultural properties, and other non-homestead properties to benefit as well.

Question 6

Who qualifies for Project Zero?

Accepted Answer

Project Zero is intended for qualifying homestead properties, which are primary residences receiving an approved homestead exemption through the county Tax Assessors office.

Question 7

How can the County afford to eliminate property taxes?

Accepted Answer

Effingham County has experienced significant industrial and commercial growth over the past decade. That growth generates additional property and sales tax revenue, allowing the County to reduce the tax burden on homeowners while continuing to provide high-quality public services.

Question 8

Will county services be reduced?

Accepted Answer

No. The goal of Project Zero is to reduce property taxes while maintaining and improving county services. As the County grows, additional revenue will help fund enhanced public safety, parks, infrastructure, and other essential services.

Question 9

Will I lose any of my existing property tax exemptions under Project Zero?

Accepted Answer

No. Project Zero does not eliminate or replace any existing property tax exemptions. All existing exemptions, including your homestead exemption and any other applicable exemptions, would continue to be applied first. If approved by voters, the property tax relief provided through the Local Homestead Option Sales Tax (LHOST) and the Local Homeowners Incentive Adjustment Grant (LHIAG) would then be applied to the remaining eligible county property taxes.

Question 10

Why is the County changing the Fire Service Fee and Sanitation Fee?

Accepted Answer

Current state law does not allow Project Zero tax relief programs to eliminate fees. By converting these fees into an Ad Valorem tax, they become eligible for future tax relief under Project Zero.

Question 11

Will everyone vote on Project Zero?

Accepted Answer

Yes. Several key components of Project Zero require voter approval through public referendums before they can be implemented.

Question 12

When will county homestead property taxes be eliminated?

Accepted Answer

If each phase of the plan is successfully implemented and approved by voters, you will start seeing a reduction in your county property taxes for qualifying homestead properties in 2027. Effingham County expects to eliminate county property taxes for qualifying homestead properties in 2028.

Question 13

Why is the County doing this?

Accepted Answer

The Effingham County Board of Commissioners believes the benefits of Effingham County's growth should be targeted towards the residents who live here. Project Zero is designed to use that growth to reduce the property tax burden on homeowners while continuing to invest in the county's future.

Question 14

Will Project Zero affect properties enrolled in CUVA?

Accepted Answer

No. Under Georgia law, your residence and homesite are assessed separately from the surrounding CUVA acreage. In Effingham County, a qualifying homestead consists of your primary residence and up to one acre of land. If approved by voters, Project Zero would apply only to the qualifying homestead portion of the property. The remaining acreage enrolled in CUVA would continue to be assessed under the existing CUVA program.

Question 15

How much revenue is LHOST predicted to generate?

Accepted Answer

Based on current estimates, the Local Homestead Option Sales Tax (LHOST) is expected to generate approximately $17 million annually. This estimate represents the total revenue generated by a one-cent countywide sales tax.For comparison, qualifying homestead properties currently pay approximately $15 million each year in eligible county property taxes. If approved by voters, LHOST—together with the Local Homeowners Incentive Adjustment Grant (LHIAG)—would provide the funding needed to reduce and ultimately eliminate those county property taxes for qualifying homestead properties.Any excess revenue remaining after qualifying homestead property taxes have been eliminated may be used to reduce county property taxes on non-homestead properties, as authorized by state law.

Frequently asked questions