RPAC
SB 33 Direct Impacts on Commercial Property
April 28, 2026
As you may know, Senate Bill 33 (SB 33), as passed, primarily targets homestead (residential) property tax relief, which has several direct and indirect consequences for commercial property owners.
Excluded from Assessment Caps: Unlike owner-occupied homes, commercial properties are not eligible for the new mandatory assessment caps. While taxable home values are capped at a 3% annual increase (or the rate of inflation), the taxable value of properties like apartments, factories, offices, and retail stores will continue to be assessed at full market value.
Potential Tax Burden Shift: Because local governments (cities, counties, and school districts) may lose revenue due to capped residential assessments, they might choose to raise millage rates to cover budget shortfalls. Since commercial properties do not benefit from the assessment cap, a millage rate increase would apply to their full market value, potentially resulting in a disproportionate tax increase for commercial owners compared to homeowners.
Sales Tax Impacts: The bill allows counties to implement a new 1% Local Homestead Option Sales Tax (LHOST) to further fund property tax reductions for homeowners. Commercial entities operating in these counties may see a shift in local consumer spending or increased operational costs related to collecting this additional sales tax.
Summary of SB 33 Provisions
The table below summarizes the core differences in how SB 33 treats different property types:
Feature | Homestead (Residential) | Commercial / Non-Owner Occupied |
Assessment Cap | Capped at 3% or inflation (whichever is higher) | No cap; assessed at market value |
Relief Mechanism | Eligible for millage rollbacks funded by sales tax | Only benefits if the millage rate is reduced district-wide |
Exemptions | Mandatory statewide base year exemption |
About the GRBOR Market Brief
The Greater Rome Board of REALTORS® (GRBOR) Market Brief is compiled by Georgia Multiple Listing Service (GAMLS).For more information on details of this month's report, please contact the Board at 404.845.4025.
*Each month, the numbers reported for the previous month are updated to reflect additional recordings.
About the Greater Rome Board of REALTORS®
The Greater Rome Board of REALTORS® (GRBOR) has been an instrumental factor in the growth of real estate in Floyd County, Georgia for more than a decade. GRBOR serves as a central source of information for its members, with mainly focusing on real estate education, the promotion of professionalism in the industry and representing REALTORS® members with legislative initiatives to create positive change for the real estate community.
About Georgia Multiple Listing Service
Since 1962 Georgia MLS has been providing real estate professionals with exceptional service, proven technology solutions, and unmatched value. With a laser-sharp focus on making the day-to-day tasks of our MLS subscribers more functional, more productive, and more profitable, we continue to implement the service blueprint that has led to our continued growth. For additional information or to start a discussion about how to partner with GAMLS please contact georgiamls@gamls.com.