ALBANY, Ga. (WALB) — Sales tax in Albany and Dougherty County could increase from 8% to 9% if voters approve a plan in May that both the Albany City Commission and Dougherty County Commission have approved.

The 1% sales tax increase would allow for lower property taxes for homeowners, according to county leaders.

“It’s something that we can give back to our residents and puts more monies back in their pockets and less taxes that are taken out of their budgets every year,” said Dougherty County Administrator Deron King.

Tax relief distribution varies by location

Under the plan, Dougherty County receives 68.35% of the tax relief, the Special Service District 8.14% and Albany 23.51%. A Dougherty County resident with a $150,000 home would save $568.99, while an Albany resident with a $150,000 home would save $595.78.

The 1% increase is estimated to generate $20 million over five years.

The plan passed through the city commission 5-2, with Albany City Commissioner Chad Warbington voting no. Warbington said he believes city residents are giving up a larger share of potential savings.

“I really felt like—that the special services district in the unincorporated area should not be favored. I think that it should be across the board. The county millage should be reduced evenly. And I really felt like that, in a sense, you’re kind of taking money out of city residents, and we’re subsidizing the special services district,” Warbington said.

When it arrived to the Dougherty County commission, it passed unanimously.

Impact on renters uncertain

The increase could hurt citizens who do not own property or a business. Some commissioners said they believe that if landlords receive tax relief, renters may benefit as landlords won’t need to raise rent. However, this is not guaranteed.

Dougherty County Commissioner Clinton Johnson said consumers can use the property tax reduction information when negotiating with landlords.

“Consumer can use that knowledge that we’re giving out now to say, ‘Hey, we know,’ because they’re telling us that all property owners, whether you’re a homeowner or not, are receiving a reduction in their property taxes. So you can’t justify raising a rate higher than the rate of the cost of inflation or the CPI— Consumer Price Index,” Johnson said.

The measure will appear on the May 19 ballot for Dougherty County residents to vote on.

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