HB854: HB854 Cohutta, City of; ad valorem tax for municipal purposes; increase homestead exemption

In 2023, the Georgia General Assembly created a homestead exemption for City of Cohutta residents age 70 or older, shielding $100,000 of a home's assessed value from the city's property taxes. This bill increases that exemption amount to $325,000, meaning eligible seniors would pay municipal property taxes only on the value of their home above $325,000. Because the change affects local taxation, the Georgia Constitution requires it to pass by a two-thirds vote in both the House and Senate, which it did. The bill also requires the change to go before Cohutta voters in a referendum held alongside the November 2025 municipal election. If a majority vote yes, the higher exemption takes effect January 1, 2026. If voters reject it or the election isn't held as required, the whole bill is automatically repealed on January 1, 2026, and the exemption amount stays at $100,000.

• Raises the City of Cohutta's homestead tax exemption for residents 70 and older from $100,000 to $325,000 of a home's assessed value.
• Requires the change to be approved by two-thirds of both the House and Senate under Georgia's constitutional rules for local tax exemptions, which occurred.
• Requires a public referendum in Cohutta held with the November 2025 municipal election before the higher exemption can take effect.
• Sets the higher exemption to begin January 1, 2026 if voters approve it, or automatically repeals the entire Act on that date if they don't.
• Allows any Cohutta voter to seek a court order (writ of mandamus) forcing the election superintendent to hold the referendum if they fail to do so.

City of Cohutta residents age 70 or older who own their homes and qualify for the exemption, the city government and its tax base, the municipal election superintendent who must run the referendum, and Cohutta voters who will decide the outcome in November 2025.

If approved, eligible seniors in Cohutta would owe city property taxes on a much smaller portion of their home's value, lowering their tax bills. The city would collect less property tax revenue from these homeowners, and the change depends entirely on voter approval in a local referendum.

• Section 1 rewrites the 2023 law's Section 1(b), raising the exempted amount from $100,000 to $325,000 of assessed home value for residents 70 and older.
• Section 2 states the Act needed a two-thirds majority vote in both chambers under the Georgia Constitution's rules for local tax laws.
• Section 3 requires a Cohutta referendum during the November 2025 municipal election, specifies the ballot language, and sets January 1, 2026 as the effective date if voters approve.
• Section 3 also provides that if voters reject the measure or no election is held, the entire Act is automatically repealed on January 1, 2026.
• Section 4 sets the Act's general effective date as approval by the Governor or becoming law without signature, except for the referendum timing in Section 3.
• Section 5 repeals any conflicting laws.

1. 2025-05-14Effective Date 2025-05-14
2. 2025-05-14Act 349
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
• senior citizens
• City of Cohutta
• local referendum