The Georgia House of Representatives today approved a bill that would ultimately fund the full obligation of a tax relief grant to all local governments.

The measure must still be taken up by the Senate and then signed into law by Governor Sonny Perdue before it can go into effect.

The Homeowner Tax Relief Grant's largest payment in Fayette County is to the school system which is expecting about $3.5 million. If those funds are eliminated, School Superintendent John DeCotis has said he wants additional property tax bills to be sent out to make up for the shortfall.

The HTRG credit is listed as a tax credit on property tax bills.

The funds are considered a grant to local governments to offset the need for additional property taxes, said Rep. Matt Ramsey, R-Peachtree City, who voted for the bill.

Ramsey said the last thing the House of Representatives wants is for local governments to re-issue new property tax bills in the current economic climate.

The bill approved by the House creates a provision that authorizes the grants in future years only if there is a surplus in the state's budget to absorb the grant. If no surplus exists the grant will not be awarded, meaning local governments will have to make up the shortfall.

A related bill, which would put a cap on increases to property tax assessments, was expected to be taken up today but the House session was adjourned before it could be discussed, Ramsey said.