HB744: HB744 Walnut Grove, City of; ad valorem tax; provide homestead exemption

This bill creates a homestead exemption from City of Walnut Grove property taxes (ad valorem taxes) for municipal purposes only, not for state, county, or school taxes. The exemption works by freezing a homestead's taxable value at a 'base year' amount and only allowing it to grow each year by a capped inflation rate, rather than jumping to full current market value. Homeowners must apply, though anyone who already had a 2025 homestead exemption and stays eligible is automatically enrolled for 2026 without reapplying. The exemption would not transfer to a new owner if the home is sold, and it cannot be stacked with another base-year homestead exemption; only the more beneficial one applies. Because it is a local constitutional homestead exemption, the bill requires a two-thirds vote in both chambers of the Georgia General Assembly and must be approved by Walnut Grove voters in a referendum on the Tuesday after the first Monday in November 2025. If approved, it takes effect January 1, 2026; if rejected or the election is not held, the exemption provision is automatically repealed 365 days after the election date.

• Grants Walnut Grove homeowners an exemption limiting the taxable value increase on their homestead to the amount allowed under an inflation-adjusted 'base year' formula, for city taxes only.
• Requires homeowners to apply for the exemption, but automatically carries over the exemption for anyone who had it in 2025 and remains eligible in 2026.
• Bars the exemption from transferring to a new owner when a home is sold, resetting the base year assessed value for that property.
• Prohibits stacking this exemption with another base-year homestead exemption for Walnut Grove, requiring the city to apply whichever is more beneficial to the taxpayer.
• Requires a November 2025 voter referendum in Walnut Grove and a two-thirds vote in the General Assembly, with automatic repeal if voters reject it or no election occurs.

Homeowners who claim a homestead exemption in the City of Walnut Grove, the city's governing authority and tax officials who must administer applications, the Walton County election superintendent who must run the referendum, and the state revenue commissioner who sets the annual inflation index used in the formula.

If approved by voters, Walnut Grove homeowners could see slower growth in their city property tax bills even as home values rise, since taxable value increases would be capped by an inflation-linked formula rather than tracking full market value each year.

• Section 1 defines key terms including 'base year assessed value,' 'adjusted base year assessed value,' and 'substantial property change,' and ties the inflation rate to a state-determined index similar to the Consumer Price Index.
• Section 1(b) grants the exemption equal to the difference between a homestead's current year assessed value and its previous adjusted base year assessed value.
• Section 1(c) and (d) set application procedures, including automatic continuation for people who had the exemption in 2025 and remain eligible in 2026, and require notice if a person becomes ineligible.
• Section 1(e) clarifies the exemption applies only to city ad valorem taxes, not state, county, or school taxes, and cannot be combined with another base-year exemption for the city.
• Section 1(g) makes the exemption apply to taxable years starting on or after 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 requires a Walnut Grove voter referendum on the Tuesday after the first Monday in November 2025, with automatic repeal 365 days after the election if the measure fails or no election is held.

1. 2025-05-09Effective Date 2025-05-09
2. 2025-05-09Act 97
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)

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

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
• Walnut Grove
• local referendum
• municipal taxes