Georgia Supreme Court rules Chatham County fire fee was an illegal tax

The Georgia Supreme Court has unanimously ruled that a fire protection fee levied by Chatham County was an illegal tax. The court upheld a previous decision stating that because the fee was not based on property value, it violated state law requiring property taxes to be value-based.

Chatham County is required to pay approximately $30 million in refunds and interest to property owners in unincorporated areas who were charged the fee between July 2022 and June 2024. The fee was assessed either as a flat $100 per parcel or based on building square footage.

The ruling is expected to have broader implications for other jurisdictions in Georgia that utilize similar fee structures. The Georgia Municipal Association noted that such jurisdictions may now need to rely on property tax revenue to fund fire services, potentially shifting the financial burden to property taxpayers while tax-exempt entities, such as non-profits and churches, receive services at no cost.