Understanding Floating Local Option Sales Tax

The Floating Local Option Sales Tax, or FLOST, is a new sales tax that can be levied up to one (1) percent for a 5-year period and collected countywide. Funds are split between the county and qualified municipalities based upon an intergovernmental agreement (IGA). The FLOST proceeds must be used exclusively to reduce property taxes.

• HB 581, passed into Georgia law in April 2024, modifies the statewide homestead exemption. This exemption requires that any inflationary increase in value be limited to no more than an inflation rate to be determined by the State Revenue Commissioner each year.

• HB 581 also authorizes local governments to levy a FLOST, a sales tax to be used for property tax relief. This provides homeowners with the benefit of reduced property taxes and maintains revenue needed for local governmental services.

No. The State required rollback rate calculation will not change. However, FLOST revenue will be subtracted from the property taxes needed to support the annual budget (like Local Option Sales Tax, or LOST), resulting in a lower millage rate than would otherwise be required.

• The county and the relevant municipalities must sign an intergovernmental agreement as required under Georgia Code Section 48-8-109.31(d)(1)(B).

  • Relevant municipalities are those that elected not to opt out of the homestead exemption provisions of HB 581.

• Once that agreement is in place, the county can call for a countywide referendum (vote).

• Citizens must then approve the plan through a local vote.

• The funds raised must be used exclusively for property tax relief.

In accordance with the law, FLOST revenue must be used exclusively for providing property tax relief.

Communities that want to lower property taxes by increasing sales taxes can benefit the most from FLOST. Retail centers and communities that attract shoppers from a wide geographic area have the potential to help offset the cost to local homeowners more than other areas. This is because those shoppers from outside the community help pay for general operations and maintenance expenses and services through sales taxes.

If approved on November 3, 2026, FLOST collections will begin in January 2027 and be imposed for five (5) years. After the initial 5-year period, renewal of the FLOST requires local legislation from the General Assembly, a new Intergovernmental Agreement (IGA), and approval by the voters of a new local referendum.

No. The Georgia Constitution prevents school districts from receiving sales tax revenue, except for Education Special Purpose Local Option Sales Tax (ESPLOST).

FLOST applies to transactions covered by state sales tax plus motor fuel, food and beverages, and online transactions. Like SPLOST, this includes everyone who makes a purchase in Haralson County, including a large portion of visitors who shop here daily.

Currently, 1% collects over $6 Million in sales tax per year.

Sales tax is applied based on the point of delivery. Therefore if a product or service is performed or delivered at an address in Haralson County, then Haralson County sales tax rate will apply — even if the seller is located outside the county.

Yes. All taxable properties (real estate and personal property), including rental properties and commercial businesses, will benefit from the reduced County M&O tax rate.