HB743: HB743 Social Circle, City of; ad valorem tax; provide homestead exemption

This bill sets up a new homestead exemption from City of Social Circle property taxes used for municipal purposes. Instead of a flat dollar exemption, it works by freezing a homeowner's taxable value at an 'adjusted base year' figure that only grows each year by inflation (plus a small margin) or the value of real home improvements. Any increase in assessed value beyond that adjusted base amount would be exempt from city taxes, effectively slowing tax bill growth for people who stay in their homes. The exemption applies only to Social Circle's municipal ad valorem taxes, not state, county, or school taxes. Homeowners must apply once, and the exemption then renews automatically, transferring to a surviving spouse who keeps living there. Because it changes the tax base, the bill needs a two thirds vote in the General Assembly and must also be approved by Social Circle voters in a November 2025 referendum before taking effect January 1, 2026. If voters reject it, the whole Act repeals itself a year later.

• Creates a homestead exemption for Social Circle homeowners equal to the amount their home's assessed value grows beyond an inflation-adjusted 'base year' value.
• Limits the annual growth of the taxable base to the prior year's inflation rate plus 25 basis points, unless the increase comes from an actual home addition or improvement.
• Requires homeowners to file one application, after which the exemption automatically renews each year without needing to reapply.
• Allows a surviving spouse to keep receiving the exemption as long as they continue living in the home as their residence.
• Restricts the exemption to city-only property taxes, excluding state, county, and school district property taxes.
• Requires city voters to approve the measure in a November 2025 referendum before it can take effect on January 1, 2026.

Homeowners in the City of Social Circle who claim the property as their primary residence (homestead), the city's tax administration and governing authority, surviving spouses of exemption holders, and Social Circle voters who must approve the measure in a referendum.

If approved, eligible Social Circle homeowners would see their city property tax bills grow more slowly even as their home values rise, since only value increases above an inflation-adjusted cap would be taxed. The change applies only to city taxes, so county and school tax bills would be unaffected.

• Section 1 defines key terms like 'adjusted base year assessed value,' 'base year assessed value,' and 'substantial property change' that determine how the exemption is calculated each year.
• Section 1(b) grants the exemption equal to the difference between a home's current assessed value and its adjusted base year value, for city taxes only.
• Section 1(c) and (d) set application rules, including automatic carryover for people who had a 2025 homestead exemption and automatic annual renewal after the first application.
• Section 1(e) clarifies the exemption doesn't apply to state, county, or school taxes and generally stacks with other homestead exemptions unless another base-year exemption already applies, in which case only the larger one is used.
• Section 1(f) directs the state revenue commissioner to set a standardized inflation index method, which may use the federal Consumer Price Index.
• Section 1(g) makes the exemption apply starting with the 2026 tax year.
• Section 2 requires a two-thirds vote in both the House and Senate for the Act to become law, per the Georgia Constitution.
• Section 3 requires a November 2025 referendum in Social Circle; if voters reject it or the election isn't held properly, the Act automatically repeals 365 days after the election date.

1. 2025-05-09Effective Date 2025-05-09
2. 2025-05-09Act 103
3. 2025-05-09House Date Signed by Governor (House)
4. 2025-04-10House Sent to Governor (House)
5. 2025-03-27Senate Passed/Adopted (Senate)
6. 2025-03-27Senate Committee Favorably Reported (Senate)
7. 2025-03-25Senate Read and Referred (Senate)
8. 2025-03-21House Passed/Adopted By Substitute (House)

• Tim Fleming (R, HD-114)Primary sponsor
• Bruce Williamson (R, HD-112)
• Reynaldo Martinez (R, HD-111)

1. PassedHouse voteMarch 21, 2025

   158 yea, 0 nay (9 not voting, 13 absent)

   Local Calendar : House Vote #293

2. PassedSenate voteMarch 27, 2025

   52 yea, 0 nay (0 not voting, 4 absent)

   Local Consent Calendar: Senate Vote #291

• property taxes
• homestead exemption
• Social Circle
• local referendum
• Walton County