SPRINGFIELD, Ga. — Effingham County property owners could see one of the largest tax cuts in county history this year, with local officials proposing about 6 mills in combined property tax relief tied to the sale of land for the proposed OpenAI data center.
The announcement was made Monday in a joint press release from the Effingham County Industrial Development Authority, the Effingham County Board of Commissioners and the Effingham County School District.
The relief could lower county and school property taxes while eliminating the Effingham County Industrial Development Authority’s 2-mill property tax levy for the duration of OpenAI’s 15-year tax abatement agreement.
The county announced the plan, less than a week after the ECIDA publicly outlined how proceeds from the Project Camellia land sale could be used to put millions of dollars back into the hands of local taxpayers.
The Effingham County Board of Commissioners will consider reducing the county’s millage rate by approximately 2 mills on Sept. 1. ECIDA funding also will support approximately 2 mills of relief for the Effingham County School District.
“This is a defining moment for Effingham County and for the Effingham County Industrial Development Authority,” ECIDA Chairman Matt Saxon said in the press release. “The funds received from this land sale represent thoughtful planning, targeted investment and disciplined economic development. It provides our team an extraordinary opportunity to strengthen the economic foundation that will support Effingham County for decades to come.”
Combined with the ECIDA’s 2-mill levy suspension, the measures are expected to provide approximately 6 mills of local property tax relief this year, the press release said.
For taxpayers, the size of the savings will depend on a property’s assessed value and the tax districts that apply to it.
From $38.6 million proposal to tax cuts
The tax-relief plan follows discussions at the ECIDA’s Aug. 20 meeting, when officials considered how to return some of the proceeds from the sale of the property for Project Camellia to local taxpayers.
IDA CEO Brandt Herndon proposed transferring $30 million annually to the county for three years, or $90 million total, to support property tax reductions.
He also proposed suspending the authority’s 2-mill property tax levy, which was estimated to generate about $8.6 million in taxes next year.
Together, those proposals were estimated at the time to provide about $38.6 million in potential property tax relief.
The county’s Monday announcement advances that plan. The ECIDA said it will provide the $30 million annual payments and suspend its 2-mill levy for the duration of OpenAI’s 15-year tax abatement agreement.
Three pieces of local relief
The proposed relief comes from three sources:
- 2 mills: The ECIDA will suspend its 2-mill property tax levy for the duration of OpenAI’s 15-year tax abatement agreement.
- About 2 mills: The county is considering using a portion of the first $30 million ECIDA payment to reduce its millage rate.
- About 2 mills: ECIDA funding will support approximately 2 mills of relief for the Effingham County School District.
If approved, those measures would total approximately 6 mills of combined local property tax relief.
A mill equals $1 in taxes for every $1,000 of assessed property value. The actual dollar savings will vary by property.
What OpenAI’s tax break means
The tax-relief plan follows the ECIDA’s approval of an incentive package for OpenAI during its July meeting.
The package provides OpenAI with a 50% property tax abatement for 15 years. The company also is locked into the 2026 millage rate for the duration of the agreement.
In practical terms, OpenAI will pay property taxes on 50% of the taxable value covered by the agreement during the abatement period. Its tax calculation also will use the 2026 millage rate for those 15 years, so future changes to local millage rates would not change the rate applied to the company under the agreement.
The ECIDA’s 2-mill levy suspension will remain in place for the duration of the abatement.
Money comes from Project Camellia
The tax relief is tied to the sale of land for Project Camellia, OpenAI’s proposed $20 billion data center campus at the Savannah Gateway Industrial Hub in Rincon.
OpenAI announced the project in July. The proposed campus would cover about 1,400 acres and could require up to 3.2 gigawatts of power.
Herndon said at the Aug. 20 meeting that the authority’s public funds increased by about $350 million following the sale of the property to Octans Ga. LLC, the listed developer for Project Camellia.
Schools also stand to benefit
The ECIDA funding is expected to provide approximately 2 mills of relief for the Effingham County School District.
Effingham County Schools Superintendent Yancy Ford said the plan would provide relief to taxpayers while allowing the school system to maintain resources for students.
“This property tax relief represents a significant benefit for Effingham County families,” Ford said. “We are grateful for the opportunity to provide meaningful relief to our taxpayers while continuing to protect the resources necessary to provide an exceptional education for our students.”
Tax cuts could grow in 2027
The immediate tax reductions are also being presented as the first major step toward Project Zero, the county’s long-term effort to eliminate county homestead property taxes.
County officials say the next phase is planned for 2027.
If voters approve the Local Homeowners Incentive Adjustment Grant referendum in November, approximately $13 million of the ECIDA payment would be used to eliminate county homestead property taxes beginning in 2027.
“Project Zero is our commitment to finding a responsible path toward eliminating county property taxes for homeowners,” District 3 Commissioner Jamie DeLoach said in the press release.
DeLoach said Project Camellia is allowing the county to provide tax relief now while building toward permanent relief for homeowners.
State offers separate $500 credit
Effingham County homeowners also could receive additional relief through a separate statewide program approved by the Georgia General Assembly.
The state approved a $500 property tax credit for qualifying homestead properties using excess state revenues.
That credit is separate from the local tax reductions tied to Project Camellia and Project Zero.
State Rep. Bill Hitchens said the credit will provide direct relief to qualifying homeowners across Georgia.
Residents still question the project
The potential tax savings come as residents continue to debate the impact of the proposed data center.
The ECIDA and OpenAI are reportedly holding private meetings this week with homeowners who live near the proposed data center site.
At the Aug. 20 IDA meeting, Raymond Carver of Belmont Glen said he would rather continue paying his property taxes than accept tax savings associated with the project.
“Helping me with my taxes is nothing I asked for,” Carver said. “I ask for quiet enjoyment of my home.”
Jeannie Seaver, who lives near the proposed development, also questioned whether potential tax savings would offset what she believes could be impacts on nearby property values.
More public meetings planned
The Effingham County Board of Commissioners will hold a three-hour work session on Project Camellia Saturday, Aug. 29, from 10 a.m. to 1 p.m. at the county’s administrative complex, 804 S. Laurel St., Springfield.
The meeting will be livestreamed, and residents will be able to submit questions in advance through the county’s online portal.
The Saturday meeting follows two information sessions Wednesday, Aug. 26, hosted by the Effingham County Chamber of Commerce at the Herald Center, 1204 N. Columbia Ave., Rincon.
The Chamber sessions will feature Georgia Tech faculty and economic development experts, along with local officials, for discussions about large-scale data centers and issues surrounding their development.
The Business & Community Leaders session will be held from 10 to 11:30 a.m. Aug. 26, with doors opening at 9:30 a.m. The evening Community Information Session will be held from 6:30 to 8 p.m., with doors opening at 6 p.m.
Attendance is free, but registration is required for the Chamber sessions. Attendees can submit questions in advance during registration for consideration during the moderated discussion.
Registration is available at effinghamcounty.com/events.
