SPRINGFIELD, Ga. — Effingham County leaders have unveiled an ambitious plan to eliminate county property taxes on qualifying homestead properties, a proposal that would require voter approval and could fundamentally change how county government is funded.
Named Project Zero, the initiative would be implemented over the next three years through a series of legislative actions, local ordinances and countywide referendums. The proposal cannot move forward unless Effingham County voters approve each of the required referendums.
If approved, the plan would eliminate only the county government's share of property taxes on qualifying homestead properties. Taxes levied by the Effingham County School District would remain unchanged because they are not eligible under the state-authorized tax relief programs.
How it works
Project Zero would rely on two state-authorized funding tools approved by the Georgia General Assembly: the Local Homestead Option Sales Tax (LHOST) and the Local Homeowners Incentive Adjustment Grant (LHIAG).
LHOST would establish a dedicated 1% local sales tax to offset county property taxes on qualifying homestead properties. County officials estimate the tax would generate approximately $17 million annually, with a large majority of that revenue expected to come from business and industrial activity.
County officials estimate qualifying homestead properties currently generate about $15 million annually in county property taxes. Homestead properties also generate an estimated $23 million annually for the Effingham County School District, bringing the total property tax burden to about $38 million.
According to Effingham County Tax Commissioner Daniel Rodewolt, homeowners with qualifying homestead exemptions would save an average of about 42% on their county property tax bills. Because savings vary by property value and exemptions, officials could not provide an average dollar amount. As an example, Rodewolt said the owner of a $325,000 homesteaded home currently pays about $3,639 in property taxes. Under Project Zero, that homeowner would save an estimated $1,528, reducing the bill to about $2,111.
County officials said the sales tax would shift a portion of the cost of county government from homeowners to the broader local economy, while LHIAG would allow the county to use surplus revenues and excess fund balance to provide additional tax relief.
The first referendum tied to Project Zero — the LHIAG referendum — is expected to appear on the November 2026 ballot.
If fully implemented, Project Zero would eliminate county property taxes that fund maintenance and operations, fire services, public works, parks and recreation, sanitation and the Industrial Development Authority for qualifying homestead properties.
Long-term benefits
County Manager Tim Callanan said the proposal is intended to ensure residents benefit from the county's continued economic growth.
"Project Zero is about putting our residents first," Callanan said. "As Effingham County continues to grow, we have an opportunity to use that success to reduce the financial burden on homeowners while continuing to provide the high-quality services our community deserves. This initiative is about making sure the benefits of growth are shared by the people who call Effingham County home."
The announcement builds on what county officials described as five consecutive years of maintaining or lowering the county's maintenance and operations millage rate while continuing to invest in public safety, infrastructure, parks, recreation and other essential services.
Board Chairman Damon Rahn called the proposal a long-term investment in the county's future.
"Project Zero is about more than lowering taxes," Rahn said. "It's about planning for the future, being good stewards of taxpayer dollars, and making sure the success of our community is reflected in the lives of the people who live here. We believe responsible growth should allow us to continue expanding county services while reducing the financial burden on homeowners."
Residents can learn more about Project Zero by visiting https://projectzero.effinghamcounty.org/ where the county has posted a project timeline, frequently asked questions, educational resources and updates on the initiative.
