Effingham County, Georgia commissioners announced Project Zero this July, an initiative to eliminate county property taxes for qualifying homestead properties by 2028. The goal is to eliminate homestead property taxes for the county portion of tax bills by 2028, a move that would save homeowners with qualifying homestead exemptions an average of about 42% on their county property tax bills.
The first ballot measure will appear this November 2026, asking voters to approve the Local Homeowners Incentive Adjustment Grant (LHIAG). A second referendum on a 1% local sales tax is expected in 2027. 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.
The initiative builds on broad property tax reform enacted by the Georgia General Assembly in Senate Bill 33, signed into law by Governor Brian Kemp on May 11, 2026, which established the new Local Homestead Option Sales Tax (LHOST) aimed at providing homeowner tax relief. Effingham County is among the first Georgia counties to pursue these newly authorized tools.
The plan
How Project Zero works
Two state-authorized funding tools and two voter referendums over three years
Project Zero relies 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.
LHIAG would allow the county to use excess revenue at the end of the year or surplus in the budget to issue a credit on the tax bill specifically targeting primary residents or homeowners in the county so that they get the priority on this process, according to County Manager Tim Callanan. The program would not guarantee annual tax credits because it could only be funded with excess revenues after the county finishes a budget year under budget.
The initiative targets homestead taxes that fund county maintenance and operations, fire services, public works, parks and recreation, sanitation and the Industrial Development Authority. County officials estimate qualifying homestead properties currently generate about $15 million annually in county property taxes.
The numbers
As an example, 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. 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—but school taxes are not affected by this plan.
Who qualifies
Homestead exemption requirements
Only primary residences with a Georgia homestead exemption are eligible
To benefit from Project Zero, homeowners must already have a qualifying homestead exemption on file with Effingham County. Homestead exemptions apply to homestead property owned by the taxpayer and occupied as his or her legal residence; exemptions are deducted from the assessed value of the qualifying property (40% of the fair market value), and to receive the benefit the taxpayer must file an initial application.
An application for homestead may be made with the county tax office at any time during the year subsequent to the property becoming the primary residence, up to April 1st of the first year for which the exemption is sought. Once granted, the homestead exemption is automatically renewed each year and the taxpayer does not have to apply again unless there is a change of residence, ownership, or the taxpayer seeks to qualify for a different kind of exemption.
Investment properties, second homes, and rental properties do not qualify. The relief applies only to owners who occupy the property as their primary residence as of January 1 of the tax year. Details on Effingham County’s homestead exemption program are available on the county’s official property tax page.
Timeline
What happens next
Voters will decide in two separate elections between now and 2027
This is a multi-step process that will include two voter referendums to complete, with the first ballot measure included this fall. The first referendum tied to Project Zero—the LHIAG referendum—is expected to appear on the November 2026 ballot. If voters approve LHIAG in November, the county could begin issuing property tax credits from surplus funds as early as the 2027 tax year.
The second referendum, which would authorize the 1% LHOST sales tax, is expected to come before voters in 2027. The current LHOST state law does not allow for the levy and collection of the LHOST tax to begin until January 1, 2028, though it is possible for this date to be moved up via a change to state law during the 2027 Regular Session.
The goal is to implement this initiative over the next three years through a series of legislative actions, local ordinances, and voter-approved referendums; Project Zero cannot move forward without the approval of Effingham County voters on each of the required referendums. Full details on the timeline and referendums are available at the official Project Zero website.
Key dates
November 2026: First referendum (LHIAG) appears on the ballot
2027: Second referendum expected (LHOST 1% sales tax)
January 1, 2028: Earliest date LHOST collection can begin under current state law
2028: Target year for full elimination of county homestead property taxes
Context
Why Effingham County can afford this
Economic growth, conservative budgeting, and new industrial development are funding the plan
The county has maintained or lowered its County Maintenance and Operations millage rate for five consecutive years while investing in public safety, infrastructure, parks and recreation and other services. A very large portion of the county’s sales tax is generated from business and industry, and the approach would shift part of the cost of county government away from homeowners because commercial and industrial activity generates a significant share of local sales tax revenue.
In late July 2026, OpenAI announced plans for a major data center campus in Effingham County. County Manager Tim Callanan said the project could serve as the catalyst for Project Zero, with the revenue generated potentially making Project Zero a reality as early as next year; current estimates project the average homeowner will see a 40% reduction in property taxes.
Effingham County is located in coastal Georgia, west of Savannah. Homebuyers considering the area can review all Georgia homebuyer programs and assistance options, including zero-down and low-down-payment programs and first-time buyer incentives.
Quick answers
Project Zero: common questions
Will my school taxes go away too?
No. Project Zero eliminates only the county government portion of your property tax bill. Taxes levied by the Effingham County School District are not affected by this plan and will remain unchanged. The county portion currently represents an estimated $15 million annually, while school taxes generate about $23 million.
Do I need to apply for this tax relief?
If you already have a homestead exemption on file with Effingham County, you do not need to apply separately for Project Zero relief. The benefits would apply automatically to all qualifying homestead properties once voters approve the referendums and the programs take effect. If you do not currently have a homestead exemption, you must apply with the county tax office by April 1 of the year you wish to claim it.
When will I see savings on my tax bill?
The timeline depends on voter approval. If the LHIAG referendum passes in November 2026, you could see credits from surplus funds as early as your 2027 tax bill. The larger, ongoing relief from the 1% LHOST sales tax would not begin until January 1, 2028 at the earliest, pending a second voter referendum expected in 2027.
Will this add a new sales tax?
Yes, if voters approve the second referendum. The LHOST would add a 1% local sales tax dedicated to offsetting homestead property taxes. County officials estimate it would generate approximately $17 million annually, with most of that revenue coming from business and industrial purchases rather than individual consumers.
What if I’m a renter or own investment property?
Project Zero benefits only owner-occupied primary residences with a qualifying homestead exemption. Rental properties, second homes, and investment properties do not qualify for the tax relief. However, if the 1% LHOST sales tax is approved, all consumers—including renters—would pay it on taxable purchases within the county.
Can the county still fund services if property taxes are eliminated?
Yes. The plan is designed to replace lost property tax revenue with sales tax revenue and surplus funds. The county has maintained or lowered its millage rate for five consecutive years while continuing to invest in public safety, infrastructure, and other services. Economic growth, particularly from commercial and industrial development, is expected to generate sufficient sales tax revenue to maintain service levels.