What Henry County's FLOST Vote Would Change on a McDonough Tax Bill, and Why New Buyers Feel It Differently

"Shall a special 1 percent sales and use tax be imposed for five years within the Special Taxing District of Henry County with the proceeds exclusively used to lower property taxes imposed by Henry County and the Cities of Hampton, Locust Grove, McDonough, and Stockbridge?"

Henry County voters will answer that question on Tuesday, November 3, 2026, according to the City of McDonough's election call. For a McDonough buyer, the vote interacts with a county rule in place since 2005. The property tax line on a resale listing reflects the seller's frozen county value. Once you own the home and file, that value resets to a recent assessment, and that is the value any FLOST cut would apply to.

The Tax Line on the Listing Belongs to the Seller

Henry County gives owners who live in their homes a base-year homestead exemption, created by a local act of the Georgia General Assembly. Under the text of that act, county taxes are figured on the home's assessed value in a "base year," and any increase above that value is exempt. The base year is "the taxable year immediately preceding the taxable year in which the exemption under this Act is first granted to the most recent owner of such homestead."

The key words are "most recent owner." The freeze stays with the person who files for it, not with the house. A seller who has owned and lived in the home for a decade pays county taxes on a value set a decade ago. A buyer who files for the exemption gets a new base year, the year just before the exemption is first granted to them, which is a far more recent value than the seller's. A seller's tax history can still be a useful reference. It just reflects a value the next owner won't inherit.

This freeze is a big deal. At the August 17, 2026 Board of Commissioners meeting, county staff estimated that it gives Henry County residents about $50 million a year in tax benefit. That benefit is largest for long-time owners, because their homes have the biggest gap between the frozen value and today's value.

Where Each Levy Sits on a McDonough Bill

The freeze covers some levies and not others, so it helps to see the full bill. The Henry County Tax Commissioner's 2026 millage rate sheet, dated 9/11/2026, splits rates between unincorporated Henry County and the City of McDonough. The McDonough column reads:

The freeze column comes from the local act. It covers county levies "including but not limited to any ad valorem taxes for special district purposes," and it excludes school taxes for educational purposes and "municipal ad valorem taxes for municipal purposes." The FLOST column comes from the ballot, which limits relief to property taxes imposed by the county and the four participating cities.

The county subtotal also explains a number that puzzles some people. The Board adopted a 15.733-mill county rate on a 4-2 vote on August 17, 2026. That figure is the unincorporated total, which includes county police and unincorporated-service levies. A McDonough parcel carries 9.111 county mills because the city has its own fire and police levies.

What the County's Own Projection Says

At the August 17 meeting, county staff walked through how FLOST would show up on bills. The timeline below comes from that presentation:

1. November 3, 2026: Voters decide the one-percent, five-year tax.
2. April 1, 2027: Collections begin if the measure passes.
3. Late May or early June 2027: The county typically receives its first proceeds.
4. 2027 tax bill: About three months of collections are available, so first-year savings are estimated at roughly 25% of the full annual amount.
5. 2028 tax bill: The full estimated reduction shows up, depending on actual collections.

One inconsistency in the county's records is worth knowing about. At the August 4 meeting, where commissioners approved the intergovernmental agreement, the county attorney said collections would run from January 1, 2027 through December 31, 2032. Henry Herald's coverage used the same dates. That span also covers six calendar years, while the ballot describes a five-year tax. The April 1 date comes from the later August 17 presentation, and the county records don't reconcile either difference.

The money estimate is the same in both records. The county assumes about $50 million a year in collections. With a 64.8% county share, that's about $32.4 million. At an estimated $13.5 million per mill, that works out to a county reduction of about 2.40 mills after a full year. Using only the standard $15,000 exemption, staff estimated annual savings of about $156 on a $200,000 property and about $540 on a $600,000 property.

Why the Same Cut Is Worth More to the Buyer

Those two estimates use the $15,000 exemption alone. They leave out the frozen base-year value, so they describe a homeowner with no freeze benefit. A new buyer in their first year of filing comes closest to that case.

A millage cut saves money in proportion to the taxable value it applies to. A long-time owner's county taxable value is locked to an old assessment. A new buyer's county taxable value starts from a recent one. If a McDonough home is worth $600,000 today and was worth much less in its seller's base year, a 2.40-mill county cut saves the buyer something close to the county's $540 example. The seller would have saved less, because their county taxes were figured on the smaller frozen value. The rate cut is the same for both owners. The dollar savings are not.

The city portion adds to the gap. McDonough's levy is outside the county freeze for everyone, so the city's 3.033 mills already apply to current value for long-time owners and new buyers alike. Citizen Portal reported that the McDonough City Council unanimously adopted that 3.033-mill rate as a rollback rate for FY 2026–27. The agreement gives McDonough 13.00% of FLOST proceeds. Applied to the county's $50 million estimate, that comes to about $6.5 million a year. That figure is simple arithmetic on an estimate. No McDonough official has publicly said what it would do to the city rate, so a specific city millage cut would be a guess for now.

The Largest Line on the Bill Is Outside FLOST

On a McDonough parcel, school M&O and school bonds add up to 22 mills, more than the county and city levies combined. FLOST relief goes only to the county and the four cities named on the ballot. The county freeze doesn't cover school levies either.

A newer state law also leaves this line alone in Henry County. HB 581 created a statewide floating homestead exemption, and local governments could opt out of it. The Georgia Secretary of State's HB 581 opt-out list shows the Henry County Board of Education's opt-out received on 2/19/2025. The City of McDonough does not appear on that list. As a result, the school portion of a McDonough bill moves with assessed value for every owner, and FLOST does not change that.

Timing the Homestead Filing

The reset only works in a buyer's favor if the exemption is in place. Georgia's Department of Revenue says an applicant generally has to own and live in the home as a legal residence on January 1. The usual filing deadline is April 1, and DOR says applications can now be filed through the end of the 45-day assessment-appeal period. Under the local act, the exemption renews automatically once granted, for as long as the owner lives in the home.

Closing dates matter here. A buyer who closes in late 2026 and files for 2027 would get their first homestead year on the same bill that, if voters approve, carries the partial first-year FLOST reduction. Henry County bills typically go out by September 1 and come due November 16. That puts the 2026 due date about two weeks after the vote.

FAQ

What would the sales tax rate be in Henry County? The Georgia Department of Revenue's chart effective October 1, 2026 lists Henry County at 8%, which includes the state's 4% plus local ELOST, LOST, SPLOST and TSPLOST 2. Adding a one-cent FLOST would bring the total to 9%, assuming the other taxes stay in place.

Does the rollback apply only to homesteaded homes? The ballot directs proceeds to "lower property taxes imposed by" the county and cities, and county staff described it as reducing millage rates on taxable property. Because the relief comes through the rate itself, it isn't tied to homestead status.

Is FLOST permanent? No. The ballot question describes a five-year tax. Continuing it after that would require renewal under state law.

Are the savings guaranteed? No. The county presented its figures as estimates that depend on actual collections.

If you're considering a home in McDonough, it's worth knowing what your own tax bill will look like, not the seller's. Yahtava Morrison can walk you through how the county freeze, the city levy and a possible FLOST rollback apply to a specific address, so you can plan your monthly payment with clear numbers. Start with a free home valuation.

This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.