HB745: HB745 Loganville, City of; ad valorem tax; provide homestead exemption

Currently, City of Loganville homeowners pay municipal property taxes based on the full assessed value of their homes as it rises each year. This bill would create a homestead exemption tied to a base year value, so the taxable value used for city taxes could only grow by the inflation rate (plus a small margin) each year, rather than jumping to match a home's full new assessed value. Homeowners who already had a homestead exemption in 2025 and remain eligible would get the new exemption automatically in 2026 without reapplying. The exemption would not affect state, county, or school district property taxes, only City of Loganville municipal taxes, and it does not apply to taxes used to pay off bonded debt. Because the bill involves a local homestead exemption, Georgia's Constitution requires a two-thirds vote in the General Assembly and approval by Loganville voters in a referendum set for November 4, 2025. If approved, the exemption applies starting with the 2026 tax year; if rejected, the whole Act repeals itself a year after the election.

• Creates a new homestead exemption from City of Loganville ad valorem (property) taxes equal to the difference between a home's current assessed value and its capped 'adjusted base year' value.
• Limits how much the taxable base value can grow each year to the inflation rate (as set by the state revenue commissioner) plus 25 basis points, unless a substantial property change occurs.
• Automatically grants the exemption for 2026 to anyone who already had a Loganville homestead exemption in 2025 and remains eligible, without a new application.
• Excludes the exemption from applying to state, county, or school district property taxes and from taxes levied to repay bonded debt.
• Requires the exemption to be approved by two-thirds of the House and Senate and then by Loganville voters in a November 2025 referendum before it can take effect.
• Sets an automatic repeal of the entire Act 365 days after the referendum if voters reject it or the election is not properly held.

Homeowners in the City of Loganville who claim a homestead exemption, the Loganville city government and its tax officials who administer the exemption, the municipal election superintendent who must run the referendum, and Walton County's official legal organ, which must publish election notices.

If approved, Loganville homeowners' city tax bills would grow more slowly because their taxable home value could only rise by roughly the inflation rate each year instead of jumping to full market value, while other taxing authorities like the county and schools would be unaffected.

• Section 1 defines key terms like 'base year assessed value,' 'adjusted base year assessed value,' and 'substantial property change' used to calculate the exemption.
• Section 1(b) grants the exemption equal to the gap between a home's current assessed value and its capped adjusted base year value, starting with the 2026 tax year.
• Section 1(c) requires an application but automatically carries over the exemption for people who had a 2025 homestead exemption and remain eligible in 2026.
• Section 1(e) clarifies the exemption applies only to city taxes, stacks with other exemptions unless a similar base-year exemption already exists, in which case the larger benefit applies.
• Section 1(f) directs the state revenue commissioner to set the annual inflation rate used to cap growth in the adjusted base year value.
• Section 2 requires a two-thirds majority vote in both legislative chambers for the Act to become law, per the Georgia Constitution.
• Section 3 sets a November 4, 2025 referendum for Loganville voters and provides for automatic repeal if the measure fails or the election isn't held.
• Section 4 makes the Act (other than the election provisions) effective upon the Governor's approval, contingent on referendum approval.

1. 2025-05-09Effective Date 2025-05-09
2. 2025-05-09Act 98
3. 2025-05-09House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-28Senate Passed/Adopted (Senate)
6. 2025-03-28Senate Committee Favorably Reported (Senate)
7. 2025-03-25Senate Read and Referred (Senate)
8. 2025-03-21House Passed/Adopted By Substitute (House)

• Reynaldo Martinez (R, HD-111)Primary sponsor
• Bruce Williamson (R, HD-112)
• 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 28, 2025

   53 yea, 0 nay (1 not voting, 2 absent)

   Local Consent Calendar: Senate Vote #313

• property taxes
• homestead exemption
• Loganville
• local referendum
• Walton County