FLOST

Font Size: + -

Feedback Print

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.

Intergovernmental Agreement (IGA)

FLOST Informational Resources

FAQs about FLOST:

What is FLOST?

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.

How can FLOST be implemented?

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.

Does FLOST revenue affect the rollback millage rate?

What can the money from FLOST be used for?

What types of communities would benefit most from FLOST?

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.

How often does the FLOST have to be voted on?

Is the school system eligible to participate in FLOST?

If we pass a FLOST but our legislative delegation or voters do not approve its renewal after the 5-year period, what will happen?

What purchases are taxed with the FLOST?