HB 1116: Homeownership Opportunity and Market Equalization Act of 2026; enact

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Discussed in meetings (21)

The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.

1. House Ways & Means Committee, February 25, 2026 (part 2)

   From 0:05:42 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The sponsor presented a substitute for HB 1116, saying rising assessments had made property taxes unsustainable. The sponsor described increasing the statewide homestead exemption from $2,000 to $10,000 in 2027, $30,000 in 2029 and $60,000 in 2031, followed by a full exemption in 2032. The sponsor said purchasers would still pay property tax for their first year. The sponsor described replacement funding through local sales taxes, special assessments and state grants, plus a limit on non-homestead property-tax revenue growth of 3% or inflation, whichever is greater, with exceptions. The sponsor also outlined school-funding adjustments, a school-funding study and a statewide homestead database. One member questioned whether losing the exemption for an unpaid assessment would be too punitive. The sponsor acknowledged the concern but said local governments wanted enforcement tools. Another member asked how many governments might face shortfalls. The sponsor could not give a count, but cited a calculated current shortfall of about $170 million and estimated annual grant funding of $200 million to $250 million. The sponsor said governments would apply and justify their need. On bonds, the sponsor said certain debt would be excluded from the cap calculation to preserve property-tax repayment. Supportive members emphasized taxpayer relief and the phase-in period. The committee approved the substitute without an announced vote count.

2. House Rules Committee, March 2, 2026

   From 0:19:23 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The chair requested a motion to return HB 1116 to Ways and Means. After a motion and second, the chair announced that it was returned without opposition. There was no discussion of its substance.

3. House Ways & Means Committee, March 2, 2026

   From 0:54:39 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The sponsor presented a substitute implementing the property-tax proposal in HR 1114, including a phased 75% reduction in the taxable share of homestead values rather than full exemption. The sponsor described sales-tax options for counties, schools and cities, school-funding provisions and a study committee on the school-funding formula. A member asked whether sales-tax collections could leave counties with excess revenue. The sponsor said revenue would first reduce homestead taxes, then other property taxes, with remaining funds available for operations or capital projects. In response to another member, the sponsor said assessment provisions had been removed. The sponsor also confirmed that the package would fully exempt homesteads of veterans with 100% disabilities. One member objected to voting on a 47-page bill received only recently. The sponsor responded that much of the language was familiar and that recent changes reflected local-government recommendations. No amendments were offered. The committee approved the substitute 14 to 5.

4. House floor session, March 3, 2026 (legislative day 26, PM)

   From 1:19:07 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (House Postponed)

   Summary by Georgia Commons: Members received HB 1116 alongside the proposed constitutional amendment, HR 1114, and discussed it as the accompanying property-tax legislation. The proposal's sponsor described a 10-year reduction in the taxable share of homestead value from 40% to 10%, full homestead relief for 100% disabled veterans, optional local sales-tax offsets and a state grant fund supported by data-center proceeds. One supporting member outlined how local sales-tax revenue could replace lost property-tax revenue over the phase-in period. Opponents argued that the replacement revenue would be unreliable, shift costs to renters and consumers, and put schools and local services at risk. One opponent specifically criticized the range of local sales-tax options in the bill. The House did not hold a separate passage vote on this bill in the transcript. The chair postponed it to the next legislative day.

5. House Rules Committee, March 3, 2026

   From 0:33:57 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1732

   Summary by Georgia Commons: The sponsor said the substitute for HB 1116 would carry out the property-tax relief plan, reducing the taxable share of home values from 40% to 10% over 10 years. The sponsor described sales-tax options for counties, cities and schools, generally within the existing five-cent local cap, with a separate city option. The sponsor also described increasing the school reserve limit from 15% to 25%, studying school funding for two years, and counting local homestead exemptions toward schools' local funding share. The sponsor said a data-center excise tax equal to otherwise payable state sales tax would support homeowner-relief grants after the existing exemption expires. A member asked whether increased sales taxes would replace property taxes and how many additional taxes the proposal would create. The sponsor answered that two existing sales-tax pennies would be repurposed, cities could seek an additional penny by referendum, and the choices would be local. Asked about the cap, the sponsor said it was five cents, excluding MARTA. The committee approved the substitute without stated opposition, then placed it on the supplemental calendar by voice vote despite objections. No count was stated.

6. House floor session, March 4, 2026 (legislative day 27, PM, part 2)

   From 2:48:32 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (House Postponed)

   Summary by Georgia Commons: The chair announced that HB 1116 would be postponed until the next legislative day, Friday. No substantive discussion occurred.

7. House floor session, March 6, 2026 (legislative day 28, PM, part 2)

   From 2:00:04 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 2209

   Summary by Georgia Commons: After a pause to distribute a Rules Committee substitute, the sponsor presented HB 1116 as a response to rising property taxes. The sponsor cited 2019-2024 increases of 49% in property-tax revenue, 29% in median household income and 24% in inflation. The sponsor described redirecting certain local sales taxes toward homeowner tax relief, retaining a five-cent local sales-tax cap with exceptions, limiting property-tax revenue growth to the greater of 3% or inflation with exceptions, requiring direct taxpayer notices, and holding a nonbinding statewide vote on complete homeowner property-tax relief. Supporting members said the changes offer local governments replacement revenue and help homeowners remain in their homes. Opponents said the latest version arrived too late for adequate review, could shift burdens to renters, businesses and farms, and could constrain schools and local services. DeKalb members questioned effects on linked local taxes; the sponsor offered further review. Members disputed whether passage required two-thirds support. The sponsor denied that the bill raises sales taxes or changes school equalization funding. The House withdrew the committee substitute, adopted the Rules substitute and passed the bill 98-68.

8. House floor session, March 6, 2026 (legislative day 28, AM)

   From 1:37:26 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (House Withdrawn, Recommitted)

   Summary by Georgia Commons: A member moved to withdraw HB 1116 from the calendar and return it to the Rules Committee. The clerk read its caption concerning property taxation, and the House agreed without objection. Members did not discuss its provisions.

9. House Rules Committee, March 6, 2026

   From 1:17:27 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 2179

   Summary by Georgia Commons: The presenter said the substitute for HB 1116 would cap local sales taxes at 5%, allow cities and counties to use a local homestead option sales tax, and permit conversions from certain existing local sales taxes. The presenter described a property-tax cap of 3% or inflation, with exceptions, and said about 36 other states used some form of limit. The presenter also described mailed tax-increase notices, referendums at primary and general elections, authority to raise school reserves from 15% to 25%, a nonbinding ballot question, homestead-exemption notification changes and back-assessment provisions. The presenter said the measure expressed an intent to provide property-tax relief when a data-center exemption expires. The committee approved the substitute without objection, then approved calendar placement by voice vote after an objection. Later, the chair clarified that the substitute was being moved to the structured portion of the calendar.

10. House Small Business Development Committee, March 17, 2026

    From 0:37:59 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The Georgia Association of Realtors’ advocacy director described HB 1116 as a property tax reduction bill and stated the association’s full support. No further explanation, questions or committee action followed.

11. Senate Finance Committee, March 17, 2026

    From 0:55:31 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor said the revised HB 1116 would redirect an existing local sales tax toward homestead tax relief first, with remaining money benefiting other property. The sponsor described annual property tax revenue growth limits of 3% or inflation, whichever is greater, with exceptions and ways to exceed them through local legislation or a referendum. Other provisions included higher school reserve limits, restricted sales tax referendum dates, mailed tax increase notices and homestead eligibility checks. The chair said the package also made the assessment growth cap mandatory. Americans for Prosperity supported the revenue limits, election timing and personalized notices. A Georgia Association of Realtors witness said the bill would improve predictability and help homeowners remain in their homes. An ACCG witness requested clearer credit calculations and revenue-sharing rules, and raised concerns about mandated expenses and levies outside the cap. A Georgia Municipal Association witness warned that redirecting existing relief could increase taxes on businesses and rental property, questioned the legal mechanism and proposed using a new sales tax instead. Members questioned effects on businesses, small counties and cities with no current property tax bills. The chair argued that another sales tax relief option could offset business impacts, which witnesses said depended on local circumstances. No vote occurred; the chair said work would continue.

12. Senate Finance Committee, March 25, 2026

    From 1:04:16 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The chair described a version retaining House tax caps and procedures for exceeding them, while creating a local-option sales tax for homestead relief that would require local legislation and could not be available until the following year. The sponsor said the proposal would give taxpayers more predictability and transparency. The chair said it would not reduce existing sales-tax revenue, broaden the goods and services taxed or increase the amount of sales tax. Asked whether an existing local sales tax would convert to the new tax, the chair said no. A member asked whether cities with existing property-tax rate caps might need higher rates on other property. The chair said the proposal should not require a rate change because existing revenues were unaffected. Members unanimously adopted an amendment deleting two sections that the chair described as redundant tax-appraiser language already passed separately by the House. A motion to pass the underlying bill was made and seconded, but the transcript does not show a final vote. The chair later identified the bill and agreed to serve as its Senate sponsor.

13. Senate Rules Committee, March 30, 2026

    From 0:55:52 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor described HB 1116 as containing taxpayer-friendly measures developed jointly with a Senate committee chair, without explaining specific provisions. A member selected it, and the committee unanimously approved the calendar containing it.

14. Senate floor session, March 31, 2026 (legislative day 39, part 1)

    From 1:31:06 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Engrossed)

    Summary by Georgia Commons: The Senate first voted 33-15 to prevent floor amendments to a group including HB 1116. Later, the sponsor presented a substitute requiring participation in a homeowner assessment limit of 3% or inflation, whichever is greater, and offering local sales tax options to reduce property taxes. The sponsor predicted substantial city and county homeowner tax reductions and said school funding calculations would be protected. The sponsor described revenue growth limits with exceptions for construction, property sales, expiring abatements and emergencies, taking effect the following year. One opponent argued the proposal would shift costs from property owners to consumers, especially renters and people buying necessities. A second opponent warned that revenue limits could constrain schools, public safety and infrastructure as costs rise. A questioning senator said schools lacked the same sales tax replacement options as cities and counties. Another supporter argued that lower property taxes would make homeownership more affordable. The sponsor responded that the bill used existing sales tax authority, included safeguards and could benefit renters and taxpayers through visitor spending. The Senate adopted the substitute and passed the bill 31-19.

15. Senate floor session, April 2, 2026 (legislative day 40, part 2)

    From 4:32:18 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The presenter said HB 1116 would require cities, counties and schools to use property-value growth limits beginning July 1, 2027, and retain local sales-tax options to reduce homeowner property taxes. The presenter said existing local-option sales-tax distributions would not change. The presenter also described limits on tax-revenue growth, allowing 9% over three years or an inflation-based amount, with exceptions and ways to approve increases through voters or local legislation. The presenter predicted substantial homeowner tax reductions and cited other states’ experience in support. One opponent said Fulton County schools expected state-required costs alone to exceed the cap and warned that referendum requirements could undermine school borrowing. A second opponent said businesses would have to prepay anticipated sales taxes. In closing, the presenter disputed that prepayment was required and argued that the measure would provide major property-tax relief. The motion to agree to the House amendment failed, 24–28.

16. House floor session, April 2, 2026 (legislative day 40, PM, part 1)

    From 3:01:24 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (House Agreed Senate Amend or Sub As Amended)

    Summary by Georgia Commons: The presenter said the amended Senate substitute to HB 1116 contained four main property tax provisions: a mandatory inflation-linked floating homestead exemption, an optional local revenue cap, an optional sales tax for homeowner property tax relief, and unchanged tax transparency provisions. The presenter said the revenue cap excluded new construction and growth and used 3%, inflation, or a 9% allowance over three years. The presenter said the sales tax could eliminate homeowner property taxes in more than 100 counties and cities and reduce them by at least half in all but three. Asked about the additional penny sales tax, the presenter said it would remain within the 9% sales tax cap and require both local legislation and voter approval. The presenter also confirmed that the bill itself did not require a two-thirds vote. Another member said existing floating exemptions were protected. The House adopted amendment AM590038 without objection and agreed to the amended Senate substitute, 102 to 73.

• Read aloud: House floor session, February 2, 2026 (legislative day 10), 0:50:00
• Read aloud: House floor session, February 3, 2026 (legislative day 11), 0:41:47
• Read aloud: House floor session, March 3, 2026 (legislative day 26, AM), 0:55:13
• Read aloud: Senate floor session, March 9, 2026 (legislative day 29), 0:26:47
• Read aloud: Senate floor session, March 27, 2026 (legislative day 38), 0:26:17

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