HB746: HB746 Monroe, City of; ad valorem tax; provide homestead exemption

Right now, when a Monroe homeowner's property is reassessed at a higher value, their city property tax bill for municipal purposes can rise along with it. This bill would create a homestead exemption that shields homeowners from most of that increase. Each year, the taxable value used for City of Monroe municipal taxes would be capped at a base value that only grows by the local inflation rate plus a small margin, rather than jumping to the full new assessed value, unless the home has real physical additions or improvements. The exemption applies only to City of Monroe taxes for municipal purposes, not to state, county, or school taxes. It does not transfer to a new owner when the home is sold, though a surviving spouse can keep it. The bill requires a two-thirds vote in the General Assembly and voter approval in a November 2025 referendum; if approved, it takes effect January 1, 2026, and if rejected, the whole Act is automatically repealed a year after the election.

• Creates a new homestead exemption from City of Monroe ad valorem (property) taxes for municipal purposes, based on the difference between a home's current assessed value and its capped 'adjusted base year' value.
• Limits how much a home's taxable value can grow each year for city tax purposes, tying the increase to an inflation rate set by the state revenue commissioner plus 25 basis points, unless there are substantial property improvements.
• Requires homeowners to apply for the exemption, but automatically carries it over from 2025 to 2026 for those already receiving a Monroe homestead exemption and still eligible.
• Makes the exemption non-transferable to a new owner when a home is sold, except that a surviving spouse can keep receiving it while living in the home.
• Requires a statewide constitutional two-thirds vote in the legislature and a local referendum in Monroe on the November 2025 ballot before the exemption can take effect.
• Automatically repeals the entire Act 365 days after the referendum if voters reject it or if the election is not properly held.

Homeowners in the City of Monroe who claim the property as their primary residence (a homestead), the City of Monroe's tax and elections officials who must administer the exemption and run the referendum, and Walton County's official legal newspaper, which must publish notice of the election.

If approved by voters, Monroe homeowners would see their city property tax bills grow more slowly even as their home values rise, because the taxable value used for city taxes would be capped near the inflation rate. This would not affect county, school, or state property taxes, only the city's municipal portion.

• Section 1(a) defines key terms, including 'adjusted base year assessed value,' which limits yearly increases in taxable value to the prior year's value plus an inflation-based adjustment.
• Section 1(b) grants the exemption equal to the difference between a home's current assessed value and its capped adjusted base year value, for City of Monroe municipal taxes only.
• Section 1(c) and (d) set application procedures, including automatic renewal each year and automatic carryover from a 2025 exemption to 2026 without a new application.
• Section 1(e) clarifies the exemption applies only to municipal taxes, not state, county, or school taxes, and cannot be combined with another base-year exemption for the same property.
• Section 1(f) directs the state revenue commissioner to set the annual inflation rate used to calculate allowable increases.
• Section 1(g) makes the exemption apply starting with the 2026 tax year.
• 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 November 2025 referendum in Monroe; if voters reject it or the election is not held properly, the Act is automatically repealed 365 days after the election date.

1. 2025-05-09Effective Date 2025-05-09
2. 2025-05-09Act 99
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)

• 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 28, 2025

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

   Local Consent Calendar: Senate Vote #313

• property taxes
• homestead exemption
• City of Monroe
• local referendum
• Walton County