HB252: HB252 Newnan, City of; ad valorem tax; provide homestead exemption

This bill creates a new homestead exemption for City of Newnan property owners that shields them from city ad valorem (property) tax increases tied to rising home values. Under the bill, a homeowner's home is exempted from taxation on the amount by which its current assessed value exceeds its value in the 'base year,' the year before the exemption was first granted to that owner. The exemption covers up to five contiguous acres and does not apply to new improvements or added land, or to state, county, or school taxes. Homeowners must apply once with the city to receive the exemption, and it renews automatically as long as they keep living there. If a homeowner already qualifies for a different base-year exemption, only the more beneficial one applies. Because the bill affects local taxation, it needs a two-thirds vote in the General Assembly and approval by Newnan voters in a November 4, 2025 referendum. If approved, it takes effect January 1, 2026; if rejected, the whole Act is automatically repealed a year after the election.

• Creates a new homestead exemption that freezes the taxable value of a Newnan homeowner's residence at its 'base year' assessed value for city tax purposes.
• Limits the exemption to homesteads of five contiguous acres or less and excludes new improvements or added land from the frozen value.
• Requires homeowners to file a one-time application with the City of Newnan to claim the exemption, after which it renews automatically each year.
• Requires that if a homeowner already qualifies for another base-year exemption, only the larger or more beneficial one is applied, not both.
• Requires the exemption to be approved by two-thirds of the General Assembly and by Newnan voters in a November 2025 referendum before it can take effect.
• Automatically repeals the entire Act 365 days after the referendum if voters reject it or the election is not held.

Homeowners who claim a homestead in the City of Newnan, the city's tax officials who administer applications and calculate exemptions, and Coweta County's election officials who must organize and certify the November 2025 referendum.

If approved, Newnan homeowners would see their city property tax bills stay tied to an older, lower home value even as their homes appreciate, potentially saving money as property values rise, while new construction or added land would still be taxed at current value.

• Section 1 defines 'base year' as the year before a homeowner first receives the exemption and limits the homestead to five contiguous acres, referencing the standard homestead definition in O.C.G.A. § 48-5-40.
• Section 1(b) sets the exemption amount as the difference between the current year's assessed value and the base year's assessed value, excluding new improvements or added land.
• Section 1(c) and (d) require a one-time application, with automatic annual renewal, and require homeowners to report if they become ineligible.
• Section 1(e) clarifies the exemption applies only to city taxes, not state, county, or school taxes, and that only the more beneficial exemption applies if multiple base-year exemptions could apply.
• Section 1(f) makes the exemption effective for taxable years starting January 1, 2026.
• Section 2 requires a two-thirds majority vote in both the House and Senate for the Act to become law, per the Georgia Constitution.
• Section 3 schedules a Newnan referendum for November 4, 2025, and provides that the Act is automatically repealed 365 days after the election if voters reject it or no election occurs.
• Section 4 sets the Act's general effective date as the date the Governor signs it or it otherwise becomes law, except for the referendum provisions.

1. 2025-05-09Effective Date 2025-05-09
2. 2025-05-09Act 95
3. 2025-05-09House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-02-21Senate Passed/Adopted (Senate)
6. 2025-02-21Senate Committee Favorably Reported (Senate)
7. 2025-02-18Senate Read and Referred (Senate)
8. 2025-02-13House Passed/Adopted By Substitute (House)

• Lynn Smith (R, HD-070)Primary sponsor
• Josh Bonner (R, HD-073)

1. PassedHouse voteFebruary 13, 2025

   163 yea, 0 nay (11 not voting, 6 absent)

   Local Calendar : House Vote #32

2. PassedSenate voteFebruary 21, 2025

   46 yea, 0 nay (9 not voting, 1 absent)

   Local Consent Calendar: Senate Vote #78

• property taxes
• homestead exemption
• City of Newnan
• local referendum
• Coweta County