HB853: HB853 Tunnel Hill, City of; ad valorem tax for municipal purposes; provide new homestead exemption

Currently, Tunnel Hill homeowners do not have a special property tax break tied to age. This bill would create a homestead exemption (a break on property taxes for a primary home) of $325,000 of assessed value against City of Tunnel Hill property taxes for municipal purposes, for any resident 70 or older. It would not apply to state, county, or school district property taxes, only city-level taxes, and it replaces rather than adds to any other city homestead exemption. A surviving spouse can keep the exemption if they still live in the home. Homeowners must apply once with the city to get the exemption, after which it renews automatically unless they become ineligible. The exemption only takes effect if voters approve it in a referendum held with the November 2025 municipal election; if approved, it applies starting January 1, 2026. If voters reject it or no election is held, the whole Act is automatically repealed on January 1, 2026.

• Creates a $325,000 homestead exemption against City of Tunnel Hill municipal property taxes for residents 70 or older.
• Allows a surviving spouse to keep the exemption as long as they continue living in the home as their residence.
• Requires homeowners to file an application with the city once, after which the exemption renews automatically each year.
• Limits the exemption to city ad valorem taxes only, excluding state, county, and school district property taxes.
• Makes the exemption take effect only if approved by voters in a November 2025 referendum, otherwise the Act repeals automatically on January 1, 2026.

Homeowners in the City of Tunnel Hill who are 70 or older, their surviving spouses if still living in the home, and the city government, which must administer applications and hold the referendum during the November 2025 municipal election.

If voters approve it, eligible senior homeowners in Tunnel Hill would see a significant reduction in their city property tax bill, since $325,000 of their home's assessed value would no longer be taxed for municipal purposes, though other taxing authorities would be unaffected.

• Section 1 defines 'property taxes for city purposes' and 'homestead,' and grants a $325,000 exemption on city ad valorem taxes for residents 70 or older.
• Section 1(c) extends the exemption to a surviving spouse who continues to occupy the home as a residence.
• Section 1(d)-(e) require a one-time application with the city, after which the exemption renews automatically unless the person becomes ineligible.
• Section 1(f) excludes state, county, and school district taxes from the exemption and makes it replace rather than stack with other city homestead exemptions.
• Section 2 requires a two-thirds majority vote in both legislative chambers under the Georgia Constitution's homestead exemption provisions.
• Section 3 requires a referendum during the November 2025 municipal election, with the exemption taking effect January 1, 2026 if approved, or automatic repeal of the Act on January 1, 2026 if not.

1. 2025-05-14Effective Date 2025-05-14
2. 2025-05-14Act 348
3. 2025-05-14House Date Signed by Governor (House)
4. 2025-04-08House Sent to Governor (House)
5. 2025-04-02Senate Passed/Adopted (Senate)
6. 2025-04-02Senate Committee Favorably Reported (Senate)
7. 2025-03-31Senate Read and Referred (Senate)
8. 2025-03-31House Passed/Adopted (House)

• Kasey Carpenter (R, HD-004)Primary sponsor
• Jason Ridley (R, HD-006)
• Steve Tarvin (R, HD-002)

1. PassedHouse voteMarch 31, 2025

   165 yea, 0 nay (10 not voting, 5 absent)

   Local Calendar Without Hbs 851 & 852: House Vote #342

2. PassedSenate voteApril 2, 2025

   55 yea, 1 nay

   Supplemental Local Consent Calendar: Senate Vote #400

• property taxes
• homestead exemption
• Tunnel Hill
• senior citizens
• local referendum