HB780: HB780 Greensboro, City of; ad valorem tax for municipal purposes; provide homestead exemption

This bill creates a special homestead exemption for homeowners in the City of Greensboro, Georgia, tied to city property taxes only. Instead of a flat dollar exemption, it works by freezing a home's taxable value at a 'base year' figure and only letting that base value grow each year by inflation (plus a small margin), or by the value of real improvements like additions. Any increase in the home's assessed value beyond that adjusted base amount is exempted from Greensboro's municipal property tax. The exemption does not apply to state, county, or school taxes, and it does not apply to bonded debt taxes. Homeowners must apply once, and the exemption then renews automatically and can pass to a surviving spouse. Because it changes local tax law, the Georgia Constitution requires the bill to pass by two-thirds vote in both chambers and to be approved by Greensboro voters in a November 2025 referendum. If approved, it takes effect January 1, 2026; if rejected or no election is held, the whole Act repeals automatically about a year after the election date.

• Creates a floating homestead exemption for Greensboro homeowners that exempts the portion of a home's assessed value growth above an inflation-adjusted 'base year' value.
• Limits the annual growth of the adjusted base year value to the inflation rate plus 25 basis points, unless a substantial property change (like an addition) occurs.
• Applies only to City of Greensboro ad valorem taxes for municipal purposes, excluding taxes used to pay off bonded debt, county taxes, school taxes, and state taxes.
• Automatically renews the exemption each year once granted, without requiring reapplication, and lets a surviving spouse keep it while living in the home.
• Requires the exemption not stack with other base-year homestead exemptions for Greensboro, applying whichever is more beneficial to the taxpayer.
• Requires the Act to be approved by Greensboro voters in a November 2025 referendum, and repeals the entire Act automatically if voters reject it or no election occurs.

Homeowners who claim a homestead in the City of Greensboro, the Greensboro city government and its tax officials, the Greene County election superintendent who must run the referendum, and the state revenue commissioner, who must set the annual inflation rate used in the formula.

If voters approve it, eligible Greensboro homeowners would see their city property tax bills grow more slowly, since increases in home value above an inflation-adjusted baseline would be exempt from municipal taxation, while other local governments' taxes on the same property stay unaffected.

• Section 1 defines key terms like 'adjusted base year assessed value,' 'homestead,' 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 of Greensboro taxes only.
• Section 1(c) and (d) set application and renewal rules, including automatic qualification for people who had a 2025 homestead exemption and remain eligible in 2026.
• Section 1(e) excludes state, county, and school taxes from the exemption and bars it from stacking with other base-year homestead exemptions for Greensboro.
• Section 1(f) directs the state revenue commissioner to set a standardized annual inflation rate, which may be based on the federal Consumer Price Index.
• Section 1(g) makes the exemption apply to taxable years starting on or after January 1, 2026.
• 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 Greensboro; if voters reject it or no valid election occurs, the Act automatically repeals about a year later.

1. 2025-05-09Effective Date 2025-05-09
2. 2025-05-09Act 104
3. 2025-05-09House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-31Senate Passed/Adopted (Senate)
6. 2025-03-31Senate Committee Favorably Reported (Senate)
7. 2025-03-28Senate Read and Referred (Senate)
8. 2025-03-27House Passed/Adopted (House)

• Trey Rhodes (R, HD-124)Primary sponsor
• Noel Williams (R, HD-148)

1. PassedHouse voteMarch 27, 2025

   164 yea, 0 nay (12 not voting, 4 absent)

   Local Calendar : House Vote #317

2. PassedSenate voteMarch 31, 2025

   49 yea, 0 nay (5 not voting, 2 absent)

   Local Consent Calendar: Senate Vote #339

• property taxes
• homestead exemption
• Greensboro
• local referendum
• municipal taxes