The Tools
LHOST
Local Homestead Optional Sales Tax
The Local Homestead Option Sales Tax (LHOST) is the primary funding source behind Project Zero. Authorized by the Georgia HOME Act and approved by local voters, LHOST establishes a 1% local sales tax dedicated exclusively to reducing county property taxes for qualifying homestead properties.
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One of the greatest advantages of LHOST is that it shifts a portion of the cost of county government away from homeowners and onto the broader local economy. In Effingham County, commercial and industrial activity generates the majority of local sales tax revenue, meaning businesses will directly contribute to reducing your tax bill.Â
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Rather than relying primarily on homeowners to fund county government through property taxes, Project Zero redirects those sales tax dollars to reduce—and ultimately eliminate—county property taxes for qualifying homestead properties. Simply put, the economic activity created by our growing business community helps lower the property tax burden on the people who live here.
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After county property taxes have been eliminated for qualifying homestead properties, any remaining LHOST revenue may be used to reduce county property taxes on non-homestead properties and, where authorized by law and approved by voters, potentially municipal property taxes as well.
LHIAG
Local Homeowners Incentive Adjustment Grant
The Local Homeowners Incentive Adjustment Grant (LHIAG) is a companion program that allows Effingham County to use surplus revenues and available fund balance to further reduce county property taxes for qualifying homestead properties.
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While LHOST provides a long-term, dedicated funding source through sales tax revenue, LHIAG allows the County to accelerate property tax relief by applying available surplus funds directly to homeowners' tax bills. Together, these two tools form the financial foundation of Project Zero.