HB260: HB260 Ad valorem tax; increase amount of a state-wide homestead exemption from certain ad valorem taxes

Under current Georgia law (O.C.G.A. § 48-5-44), homeowners get a state-wide exemption that shields $2,000 of their home's value from property taxes collected for state, county, and school purposes. This bill would raise that exemption amount to $5,000. The exemption still would not apply to municipal taxes for school purposes or to taxes used to pay interest on or retire bonded debt. Because this changes a constitutional tax exemption, the bill needs a two-thirds vote in both the House and Senate, and it must then go before Georgia voters in a statewide referendum no later than the Tuesday after the first Monday in November 2026. If voters approve it, the higher exemption takes effect January 1, 2027. If voters reject it or the election is not held as described, the change never takes effect and the bill automatically repeals itself the following January 1.

• Raises the state-wide homestead property tax exemption in O.C.G.A. § 48-5-44 from $2,000 to $5,000 of a home's assessed value.
• Keeps the existing rule that the exemption does not apply to municipal school taxes or to taxes for paying interest on or retiring bonded debt.
• Requires a two-thirds majority vote in both legislative chambers before the change can become law, per the Georgia Constitution.
• Requires the Secretary of State to place the exemption increase before voters in a statewide referendum by November 2026.
• Automatically repeals the exemption increase if voters reject it or if the referendum is not conducted as specified.
• Sets January 1, 2027 as the effective date for the higher exemption if voters approve it.

Georgia homeowners who claim the homestead exemption on their primary residence would see a larger portion of their home's value shielded from state, county, and school property taxes. County tax assessors, school districts, and the Secretary of State's office, which must run the referendum, are also affected.

If approved by voters, homeowners statewide would owe property taxes on $3,000 less of their home's assessed value for state, county, and school purposes, modestly lowering tax bills, while local governments and school systems that rely on that revenue would collect less unless they adjust rates elsewhere.

• Section 1 rewrites O.C.G.A. § 48-5-44 to raise the homestead exemption ceiling from $2,000 to $5,000 of home value, keeping the carve-outs for municipal school taxes and bonded debt interest and retirement.
• Section 2 requires the Act to receive a two-thirds majority vote in both the House and Senate to satisfy the Georgia Constitution's amendment rules.
• Section 3 directs the Secretary of State to hold a statewide referendum by the Tuesday after the first Monday in November 2026, with the exact ballot language specified, and publish notice in each county's official organ for two weeks before the vote.
• Section 3 also sets the exemption increase to take effect January 1, 2027 if approved, or to automatically repeal the following January 1 if rejected or if the referendum is not properly held.
• Section 4 makes the rest of the Act effective upon the Governor's signature or upon becoming law without signature.
• Section 5 repeals any conflicting state laws.

1. 2025-04-04House Withdrawn, Recommitted (House)
2. 2025-03-06House Committee Favorably Reported (House)
3. 2025-02-06House Second Readers (House)
4. 2025-02-05House First Readers (House)
5. 2025-02-04House Hopper (House)

• Matt Reeves (R, HD-099)Primary sponsor
• Shaw Blackmon (R, HD-146)
• Beth Camp (R, HD-135)
• Sandy Donatucci (R, HD-105)
• Deborah Silcox (R, HD-053)
• Clint Crowe (R, HD-118)

• property taxes
• homestead exemption
• ballot referendum
• Georgia constitution