Georgia fire-fee ruling comes ahead of Sandy Springs tax hearings

The Georgia Supreme Court has struck down Chatham County’s fire protection fee, raising funding questions for local governments that use similar charges as Sandy Springs prepares for its own property-tax hearings.

The Oct. 14 decision does not establish a tax increase for Sandy Springs. The city announced its hearings a week before the ruling, and the cited reporting does not identify a comparable Sandy Springs fire fee affected by the decision.

The court unanimously affirmed a lower court’s finding that Chatham County’s charge functioned as a property tax and was unlawful because it was not based on property value. The judgment includes approximately $26.85 million in refunds and $3.27 million in prejudgment interest, according to the court’s opinion.

Justice John J. Ellington wrote the opinion. All participating justices agreed; Chief Justice Nels Peterson was disqualified.

Potential shift to property taxes

Local governments collecting similar fire fees may need to rely more heavily on property-tax revenue, the Georgia Municipal Association told Fulton Neighbor.

The association warned that replacing fees with property taxes could shift costs from tax-exempt institutions to homeowners and taxable businesses. Hospitals, churches, colleges and other exempt properties could continue receiving fire protection while no longer contributing through the fee.

“But we’re still going to go put out the fire if the church catches on fire, right?” Clint Mueller, deputy director of the Association of County Commissioners of Georgia, told Fulton Neighbor.

Mueller said attorneys have filed similar class-action lawsuits across Georgia and that other counties have settled. His organization plans to ask lawmakers to restore authority to charge fire fees during the next legislative session.

Sandy Springs’ fire spending

Sandy Springs budgeted $22.4 million for its fire department in fiscal year 2027, approximately 13% of its $170.4 million general fund. Property-tax revenue is projected at $49.5 million, Appen Media reported.

The city has maintained a 4.731-mill property-tax rate since its founding in 2005. Its charter requires voter approval to exceed that limit, according to the city’s tax information page.

Separately, Sandy Springs issued $50.5 million in debt for fire station projects. A preliminary schedule calls for rebuilding or renovating three stations by the end of 2027, Rough Draft Atlanta reported in May. That report identified approximately $38.5 million available for construction and said the final project cost remained unknown.

Mayor Rusty Paul has also warned about a separate state proposal to phase out homestead property taxes. At his Sept. 15 State of the City address, Paul said such a change could eliminate a third of city revenue. He said Sandy Springs would consider cutting staff, community celebrations and nonprofit subsidies before reducing police and fire resources, according to Rough Draft Atlanta.

Public hearings begin Oct. 20

Sandy Springs announced Oct. 7 that its adopted budget requires a millage rate above the rollback rate — the rate calculated to offset revenue growth from reassessments. That announcement preceded the fire-fee ruling.

Three hearings will take place at City Hall, 1 Galambos Way: