Adjust the sliders to see how an economic downturn affects LHOST revenue, homestead exemptions, and county services — and how things change as the 2037 expiration approaches.
HB 36EX proposes a 1% LHOST (Local Homestead Option Sales Tax) that offsets county property taxes for homeowners. The exemption amount each year is tied directly to how much the sales tax collects. In a recession, sales tax revenue falls — and so does the relief homeowners were promised, while the county faces its own revenue squeeze.
Note: LHOST money cannot go to schools. The $3M annual cut from HB 30 to school district funding is a separate and unrelated problem that this tool does not address.
Step 1 — Choose a Recession Scenario
Sales Tax Revenue Drop−12%
No drop (0%)Worst case (−30%)
Estimated Annual LHOST Revenue (baseline)$18M
$10M/yr$30M/yr
Year2031
2028 (LHOST starts)2040 (post-expiration)
⚠ You're in the Cliff Zone (2038–2039)
The LHOST sales tax stopped collecting on December 31, 2037. But homestead exemptions continue through December 31, 2039. In this period, the county owes homeowners the full exemption amount with zero sales tax revenue to fund it.
The gap must come from the county's general fund — meaning cuts to roads, parks, police, fire, or a tax increase on other property owners.
Your Results — 2031
Baseline LHOST Revenue
$18.0M
What the county would collect in a normal year
Revenue in this Scenario
$15.8M
After the recession-driven drop
Revenue Shortfall
−$2.2M
Missing from county coffers vs. baseline
Homeowner Exemption Change
−12%
Property tax relief homeowners receive compared to what was promised
Revenue Comparison
Baseline LHOST (normal year)$18.0M
$18.0M
Recession scenario$15.8M
$15.8M
Shortfall (unfunded)$2.2M
$2.2M
Remember: Schools Aren't in This Picture At All
None of the LHOST revenue shown above can go to Catoosa County schools. The $3 million annual cut to the school district from HB 30 is a completely separate gap — one that isn't reflected in this calculator because LHOST legally cannot address it, even in the best economic conditions.
Methodology & Assumptions
The baseline LHOST revenue estimate ($10M–$30M range, default $18M) is based on approximate retail sales activity for a county of Catoosa's size (~75,000 residents) applying a 1% sales tax rate. Exact figures will depend on the county's actual taxable sales base, which is not yet published. Recession drop percentages are based on Georgia Department of Revenue historical state sales tax collection data: 2001 (~5%), 2020 (~10–12% initial), 2008–09 (~17–20% sustained). The homestead exemption is calculated annually as a direct proportion of LHOST proceeds per HB 36EX Section 1(b). The 2038–2039 cliff assumes zero LHOST revenue after December 31, 2037 per HB 36EX Section 1(f), while exemptions per Section 1(e)(4) continue through December 31, 2039.
Sources: Local 3 News (Jan. 2025) • Georgia HB 36EX (Introduced 2026) • O.C.G.A. Article 2C, Ch. 8, Title 48 • Georgia Dept. of Revenue historical data