---
title: Floor Amendment AM 59 0038 to HB 1116
collection: amendment
id: amendment:2025-2026/hb1116/248959
cite_as: HB 1116, Floor Amendment AM 59 0038
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1116/amendments/248959
md_url: https://georgiacommons.org/bills/2025-2026/hb1116/amendments/248959.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1116/amendments/248959/text
source_url: https://www.legis.ga.gov/api/legislation/document/20252026/248959
date: 2026-09-25
license: Public record of the Georgia General Assembly, from its website (legis.ga.gov)
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
version: Floor Amendment AM 59 0038
version_id: amendment:2025-2026/hb1116/248959@248959
---
# Floor Amendment AM 59 0038 to HB 1116
ADOPTED
Representatives Blackmon of the 146th and Burns of the 159th offers the following
amendment:
Amend the substitute to HB 1116 (LC 59 0475S) by deleting lines 1 through the end and
inserting in lieu thereof the following:
To amend Titles 20, 21, 36, and 48 of the Official Code of Georgia Annotated, relating to
education, elections, local government, and revenue and taxation, respectively, so as to
provide for property tax reform; to provide for distribution and use of special district option
sales and use tax proceeds (FLOST); to establish a Local Homestead Option Sales Tax
(LHOST); to provide for imposition, collection, and distribution of proceeds; to provide for
definitions; to exclude amounts attributable to certain exemptions from ad valorem taxation
from the equalized adjusted school property tax digest for the purpose of calculating the local
five mill share and equalization grants; to increase the cap on reserve funds for local school
systems; to require the proposed annual operating budget resolution of a local board of
education to be approved in a referendum election if such resolution would increase certain
revenues raised by the local board of education by a certain amount; to provide that certain
proposed increases in revenue collections by local governments must be approved by the
voters of such local government; to limit the dates of a special election presenting a question
by a local government to increase revenues; to revise provisions relating to certification of
assessed taxable value of property and method of computation, resolution or ordinance
required for millage rate, and advertisement of intent to increase property tax; to make the
state-wide base year homestead exemption mandatory for all political subdivisions; to revise
definitions, limits, and procedures related to the state-wide base year homestead exemption;
to require municipal and school officials to submit certain information relating to ad valorem
taxes; to prohibit the retroactive assessment of additional ad valorem taxes to a taxpayer due
to an improperly or mistakenly applied homestead exemption at no fault of the taxpayer; to
provide for the holding of a nonbinding, advisory referendum election to determine whether
the qualified electors of the State of Georgia desire that the Georgia General Assembly allow
Georgians to decide whether to authorize new finance procedures for local governments and
school systems for the purpose of providing complete property tax relief for homeowners;
to make conforming changes; to provide for related matters; to provide for short titles; to
provide an effective date; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
PART I
SECTION 1-1.
This Act shall be known and may be cited as the "Homeownership Opportunity and Market
Equalization Act of 2026."
PART II
SECTION 2-1.
Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to sales and use tax,
is amended in Code Section 48-8-6, relating to prohibition of political subdivisions from
imposing various taxes, ceiling on local sales and use taxes, and taxation of mobile
telecommunications, by revising subparagraph (a)(1)(C) as follows:
"(C) Up to 1 percent in aggregate of any sales and use taxes authorized under Code
Section 48-8-96, Code Section 48-8-97, Article 2B of this chapter, Article 2C of this
chapter, Part 3 of Article 3 of this chapter, and Article 4 of this chapter."
SECTION 2-2.
Said chapter is further amended by revising subsection (a) of Code Section 48-8-109.42,
relating to use of tax proceeds, property tax relief requirements, and noncompliance, as
follows:
"(a) Any proceeds received by a political subdivision from the tax authorized by this article
shall be used by such political subdivision exclusively for tax relief and in conjunction with
all limitations provided in the intergovernmental agreement authorizing the tax for such
political subdivision as follows:
(1) With respect to the proceeds of the tax received by a political subdivision prior to
July 1 of a given calendar year in which the tax is imposed under this article for such
political subdivision, the governing authority of such political subdivision shall apply
such proceeds to reduce homestead ad valorem property taxes for such year; and
(2) With respect to the proceeds of the tax received by a political subdivision on or after
July 1 of a given calendar year in which the tax is imposed under this article for such
political subdivision, the governing authority of such political subdivision shall apply
such proceeds to reduce homestead ad valorem property taxes for the subsequent year."
SECTION 2-3.
Said chapter is further amended by adding a new article to read as follows:
"ARTICLE 2C
48-8-109.50.
(a) This article shall be known and may be cited as the 'Local Homestead Option Sales
Tax' (LHOST).
(b) As used in this article, the term:
(1) 'Eligible local government' means any county, consolidated government, or
municipality for which a homestead exemption is in effect by local Act in accordance
with Code Section 48-8-109.52 and whose governing authority levied and derived
revenue from an ad valorem tax on homestead property within the special district at a net
millage rate of greater than zero in the tax year preceding the effective date of such local
Act. Such term excludes any local government that levies the tax authorized under
Article 4 of this chapter.
(2) 'Homestead property' means homestead as defined and qualified in Code
Section 48-5-40, with the additional limitation that such term shall include:
(A) Only the primary residence and not more than five contiguous acres of land
immediately surrounding such residence; or
(B) If the property is assessed pursuant to Code Section 48-5-7.4 or 48-5-7.7, only the
primary residence and the portion of the underlying property that is excluded from the
benefit of such assessment pursuant to subparagraph (a)(1)(B) of Code Section 48-5-7.4
or subparagraph (b)(2)(B) of Code Section 48-5-7.7.
(3) 'Local Homestead Option Sales Tax' or 'LHOST' means any special sales and use tax
levied under this article to fund homestead exemptions granted by local Act for eligible
local governments in accordance with this article.
48-8-109.51.
(a) Pursuant to the authority granted by Article IX, Section II, Paragraph VI of the
Constitution of this state, there are created within this state 159 special districts. The
geographical boundary of each county shall correspond with and shall be conterminous
with the geographical boundary of one of the 159 special districts.
(b) The territory of each special district shall include all of the territory within the county,
including all municipalities, to the extent the municipal boundaries lie within the
geographical boundaries of the county.
(c) The territory of each special district shall exclude any territory within which the tax
provided for in Article 4 of this chapter is levied.
48-8-109.52.
(a) Subject to the requirements of this article and the sales tax rate limitations imposed by
Code Section 48-8-6, beginning January 1, 2028, there shall be imposed within any special
district a special sales and use tax to be levied and collected to fund homestead exemptions
from ad valorem taxes imposed by eligible local governments on homestead property
within the special district. Any such tax shall be known as an 'LHOST.'
(b) An LHOST shall begin to be levied and collected in a given special district on the first
day of the next succeeding calendar quarter which begins more than 50 days after
certification of the result of the election approving the local Act granting a homestead
exemption in accordance with this article and applicable to the county or consolidated
government that is conterminous with the special district.
(c) Each local Act enacted pursuant to this article shall:
(1) Be adopted and approved by local referendum in accordance with Article VII,
Section II, Paragraph II(a)(2) of the Constitution;
(2) Incorporate, by reference to this article, the terms and conditions specified under this
article;
(3) Exempt homestead property within the special district from all ad valorem taxes
imposed by the governing authority of the local government for all purposes in an amount
to be determined annually based upon the net proceeds of the sales and use tax collected
under this article within the special district;
(4) Provide that such homestead exemption shall be allowed in addition to and not in lieu
of any other homestead exemption applicable to the homestead property;
(5) Provide that such homestead exemption shall become effective on January 1 of the
year subsequent to the approval of the local Act in the requisite referendum;
(6) Include only those portions of real property located within the applicable special
district established pursuant to this article; and
(7) Provide that the homestead exemption shall not apply to or affect any ad valorem
taxes other than those levied by the governing authority of the local government to which
the local Act applies.
48-8-109.53.
(a) When the imposition of a local sales and use tax is authorized according to the
procedures provided in this article within a special district, the county whose geographical
boundary is conterminous with that of the special district shall levy a local sales and use
tax at the rate of 1 percent.
(b) Except as otherwise provided in this article, the LHOST shall correspond to the tax
imposed by Article 1 of this chapter, and no item or transaction which is not subject to
taxation under Article 1 of this chapter shall be subject to a tax imposed under this article;
provided, however, that a tax imposed under this article shall apply to sales of motor fuels
as prepaid local tax as defined in Code Section 48-8-2 and shall be applicable to the sale
of food and food ingredients and alcoholic beverages as provided for in Code
Section 48-8-3. The levy of such tax upon sales of motor fuels as defined in Code
Section 48-9-2 shall only be imposed on the retail sales price of the motor fuel which is not
more than $3.00 per gallon.
(c) With respect to services that are regularly billed on a monthly basis, an LHOST shall
apply to the first regular billing period coinciding with or following the effective date of
the LHOST.
48-8-109.54.
(a) The tax shall cease to be imposed on the final day of the maximum period of time,
which shall not exceed ten years, as specified in the local Act granting the homestead
exemption for the county or consolidated government.
(b) The tax may be renewed for any special district in the same manner and under the same
conditions as for an initial imposition of the tax. Such newly authorized tax shall not be
imposed until the expiration of the tax then in effect.
48-8-109.55.
(a) Each LHOST shall be exclusively administered and collected by the commissioner for
the use and benefit of the special district imposing the tax. Such administration and
collection shall be accomplished in the same manner and subject to the same applicable
provisions, procedures, and penalties provided in Article 1 of this chapter except that the
LHOST shall be applicable to sales of motor fuels as prepaid local tax as defined in Code
Section 48-8-2; provided, however, that all moneys collected from each taxpayer by the
commissioner shall be applied first to such taxpayer's liability for taxes owed the state; and
provided, further, that the commissioner may rely upon a representation by or on behalf of
the county government or the Secretary of State that such a tax has been validly imposed,
and the commissioner and the commissioner's agents shall not be liable to any person for
collecting any such tax which was not validly imposed.
(b) Dealers, as defined in Code Section 48-8-2, shall be allowed a percentage of the
amount of the tax due and accounted for and shall be reimbursed in the form of a deduction
in submitting, reporting, and paying the amount due if such amount is not delinquent at the
time of payment. Such dealer deduction shall be at the rate and subject to the requirements
specified under subsections (b) through (f) of Code Section 48-8-50.
(c) Each sales and use tax return remitting sales and use taxes collected under this article
shall separately identify the location of each retail establishment at which any of the sales
and use taxes remitted were collected and shall specify the amount of sales and the amount
of taxes collected at each establishment for the period covered by the return to facilitate the
determination by the commissioner that all sales and use taxes imposed by this article are
collected and distributed according to situs of sale.
48-8-109.56.
(a) The proceeds of the tax collected by the commissioner under this article shall be
disbursed as soon as practicable after collection directly to the county whose boundary is
conterminous with the boundary of the special district to be held in trust for the special
district in an interest-bearing account and distributed thereafter by such county among the
eligible local governments within the special district in accordance with the provisions of
Code Section 48-8-109.57 and Code Section 48-8-109.58.
(b) No funds other than the annual LHOST proceeds, and interest accrued thereon, shall
be placed in such accounts. The funds within such accounts shall not be commingled with
any other funds of the county.
48-8-109.57.
(a) Following the adoption of millage rates each year by all eligible local governments and
prior to the printing of ad valorem tax bills, the county tax commissioner shall calculate the
amount of the assessed value to be exempted for homestead property within the special
district for which any local Acts are in effect under this article. The amount of the assessed
value of each homestead property that shall be exempted shall be calculated each tax year
based on the total value of all homestead property of the special district, the net millage
rates adopted by each eligible local government for such tax year, and the net proceeds of
the LHOST which are available in the trust account as of August 1 of such year.
(b) For an LHOST imposed within a special district which has a single eligible local
government, the county tax commissioner shall calculate the maximum amount of assessed
value of homestead property which may be exempted from all ad valorem taxes imposed
by such single eligible local government on homestead property within the special district,
which calculation shall be based upon the proceeds of the LHOST available in the trust
account as of August 1 of such year, the total assessed value of all homestead property in
the special district, and the net millage rates imposed by such single eligible local
government on such homestead property.
(c) For an LHOST imposed within a special district which has one or more eligible local
governments, following the adoption of millage rates each year by all such eligible local
governments, but not later than September 2, the county tax commissioner shall calculate
the single, maximum amount of assessed value which may be exempted throughout the
special district for all homestead property from all applicable ad valorem taxes imposed by
the eligible local governments within the special district, which calculation shall be based
upon the proceeds of the LHOST available in the trust account as of August 1 of such year,
the total assessed value of all homestead property in the special district, and the net millage
rates imposed by each such eligible local government on the homestead property within its
territory within the special district.
(d) In the event that the proceeds collected for a special district exceed the amount
necessary to exempt all homestead property from all ad valorem taxes imposed by all
eligible local governments on homestead property within the special district, the excess
proceeds shall be calculated by the county tax commissioner and applied in a manner to
reduce the net millage rates in effect on property within the special district by an equal
percentage across all eligible local governments in the special district for such tax year.
(e) For the purposes of subsection (c) of this Code section, in the event an eligible local
government fails to submit its adopted millage rates by September 1, the county tax
commissioner shall use 90 percent of such eligible local government's prior year's net
millage rates applicable to homestead property in the special district in the calculation
under this Code section and the county shall only disburse, under Code
Section 48-8-109.58, the lesser of such amount and the net millage rate actually levied by
such eligible local government in the current year.
48-8-109.58.
(a) Prior to mailing ad valorem tax bills for homestead property, the tax collector for each
eligible local government shall apply the homestead exemption calculated by the county
tax commissioner under subsection (b) or (c) of Code Section 48-8-109.57 to each ad
valorem property tax bill for homestead property. Each ad valorem tax bill for homestead
property shall reflect the taxpayer's gross ad valorem tax savings which resulted from the
LHOST homestead exemption.
(b) In the event of excess proceeds described in subsection (d) of Code
Section 48-8-109.57, prior to mailing ad valorem tax bills, the tax collector for each
eligible local government shall apply the reduction calculated under subsection (d) of Code
Section 48-8-109.57 to each ad valorem property tax bill. If applicable, each ad valorem
tax bill shall reflect the taxpayer's gross ad valorem tax savings which resulted from such
LHOST millage rate reduction.
(c) Within 30 days of an eligible local government's mailing of its ad valorem tax bill for
a given tax year, the county shall disburse LHOST funds from the trust account to each
eligible local government in the amount of ad valorem property tax revenue that the given
eligible local government did not collect due to the amount of the homestead exemption
determined under Code Section 48-8-109.57, applied pursuant to subsection (a) of this
Code section, and as granted through the local Act required under this article and, if
applicable, the county shall also disburse the amount of revenue foregone due to the
reduction of the eligible local government's millage rates provided for in subsection (d) of
Code Section 48-8-109.57 and subsection (b) of this Code section.
(d) No disbursement shall be made to any governing authority until such governing
authority has mailed ad valorem tax bills for a given year.
48-8-109.59.
Where a local sales and use tax has been paid with respect to tangible personal property by
the purchaser either in another local tax jurisdiction within the state or in a tax jurisdiction
outside the state, the tax may be credited against the tax authorized to be imposed by this
article upon the same property. If the amount of sales and use tax so paid is less than the
amount of such tax due under this article, the purchaser shall pay an amount equal to the
difference between the amount paid in the other tax jurisdiction and the amount due under
this article. The commissioner may require such proof of payment in another local tax
jurisdiction as the commissioner deems necessary and proper. No credit shall be granted,
however, against the tax imposed under this article for tax paid in another jurisdiction if the
tax paid in such other jurisdiction is used to obtain a credit against any other local sales and
use tax levied in the special district or any other political subdivision within the special
district; and taxes so paid in another jurisdiction shall be credited against the tax levied
under Article 2 of this chapter, if applicable, then against the tax levied under Part 1 of
Article 3 of this chapter, if applicable, then against the tax levied under Part 2 of Article 3
of this chapter, if applicable, and then against the tax levied under this article.
48-8-109.60.
No tax provided for in this article shall be imposed upon the sale of tangible personal
property which is ordered by and delivered to the purchaser at a point outside the
geographical area of the special district in which the tax is imposed regardless of the point
at which title passes, if the delivery is made by the seller's vehicle, and including United
States mail or common carrier or by a private or contract carrier licensed by the Federal
Motor Carrier Safety Administration or the Georgia Department of Public Safety.
48-8-109.61.
No tax provided for in this article shall be imposed upon the sale or use of buildings and
construction materials when the contract for which the materials are purchased or used was
advertised for bid prior to the local referendum held for the local Act required to initiate
the levy of the tax and the contract was entered into as a result of a bid actually submitted
in response to the advertisement prior to approval of such local Act.
48-8-109.62.
The commissioner shall have the power and authority to promulgate such rules and
regulations as shall be necessary for the effective and efficient administration and
enforcement of the collection of the tax authorized by this article.
48-8-109.63.
Except as otherwise provided in this article or Code Section 48-8-6, the tax authorized by
this article shall be in addition to any other local sales and use tax. The imposition of any
other local sales and use tax within a county, municipality, or special district shall not
affect the authority of a county, municipality, or special district to impose the tax
authorized by this article and the imposition of the tax authorized by this article shall not
affect the imposition of any otherwise authorized local sales and use tax within a county,
municipality, or special district."
PART III
SECTION 3-1.
Part 4 of Article 6 of Chapter 2 of Title 20 of the Official Code of Georgia Annotated,
relating to financing under the "Quality Basic Education Act," is amended in Code
Section 20-2-164, relating to local five mill share funds, by revising subsection (g) as
follows:
"(g) For purposes of calculation under this Code section and Code Section 20-2-165, the
equalized adjusted school property tax digest, adjusted by paragraph (1) of subsection (a)
of this Code section, shall be reduced by the sum of the following products:
(1) The product of the number of constitutional homestead exemptions for owner
occupied homes pursuant to Code Section 48-5-44 granted for that year, exclusive of
those homestead exemptions provided pursuant to Code Sections 48-5-47, 48-5-48, and
48-5-52, multiplied by the amount per exemption authorized under Code Section 48-5-44;
provided, further, that, in any city operating an independent school system which
provides a homestead exemption through local legislation comparable to that provided
in Code Section 48-5-44, the product calculated in this paragraph shall represent the
number of homestead exemptions provided through the applicable local legislation
multiplied by the amount per exemption authorized in Code Section 48-5-44, or by the
amount per exemption authorized in the applicable local legislation, whichever is less;
and provided, further, that, if the amount per exemption authorized in Code
Section 48-5-44 has been changed subsequent to the year of the applicable digest, the
more recently adopted amount per exemption shall be used for the product calculated in
this paragraph;
(2) The product of the number of constitutional homestead exemptions for disabled
veterans pursuant to Code Section 48-5-48 granted for that year, multiplied by the amount
per exemption authorized under that Code section; provided, further, that, in any city
operating an independent school system which provides a homestead exemption through
local legislation comparable to that provided in Code Section 48-5-48, the product
calculated in this paragraph shall represent the number of homestead exemptions
provided through the applicable local legislation multiplied by the amount per exemption
authorized in the applicable local legislation, whichever is less; and provided, further,
that, if the amount per exemption authorized in Code Section 48-5-48 has been changed
subsequent to the year of the applicable digest, the more recently adopted amount per
exemption shall be used for the product calculated in this paragraph;
(3) The product of the estimated number of persons age 65 or older residing in the local
school system during that year multiplied by 5,000;
(4) The product which results from the following calculations:
(A) Subtract the estimated state-wide percentage that persons age 65 or older is of the
total population, excluding military personnel and institutional population, from the
respective percentage for the local school system. If the respective percentage for the
local school system is less than the state-wide percentage, a difference of zero shall be
used in the calculations in this paragraph;
(B) Multiply the difference which results from subparagraph (A) of this paragraph by
1,000; and
(C) Multiply the product which results from subparagraph (B) of this paragraph by the
estimated number of persons age 65 or older residing in the local school system during
that year; and
(5) The product which results from the following calculations:
(A) Divide the amount reported in paragraph (4) of subsection (e) of this Code section
by the average ratio of assessed value to true value used to calculate the most recent
equalized adjusted school property tax digest pursuant to Code Section 48-5-274; and
(B) Multiply the quotient which results from subparagraph (A) of this paragraph by .4;
(6) The difference between the assessed value and the net taxable assessed value of all
properties for which an exemption pursuant to Code Section 48-5-44.2 was granted for
that year; and
(7) The difference between the assessed value and the net taxable assessed value of all
properties for which an exemption authorized pursuant to a local constitutional
amendment or Article VII, Section II, Paragraph II(a) of the Constitution was granted in
that year."
SECTION 3-2.
Said part is further amended in paragraph (5) of subsection (a) of Code Section 20-2-167,
relating to funding for direct instructional, media center, and staff development costs,
computerized uniform budget and accounting system, submission of local budget to state
board, and provision of certain information by local boards, by striking "15 percent" and
replacing it with "25 percent".
SECTION 3-3.
Said part is further amended in Code Section 20-2-167.1, relating to public meetings on
proposed annual operating budget, notice, electronic copies, and exception for certain
nonprofits, by revising subsection (b) as follows:
"(b)(1) Each governing body shall hold at least two public meetings, which shall not
occur within the same week, for the purpose of providing an opportunity for public input
on its proposed annual operating budget before adopting any budget; provided, however,
that any other public meeting or hearing held that is related to the budget as required by
law shall satisfy all or a portion of such requirement. The governing body of a charter
school with a state-wide attendance zone and students residing in 25 percent or more of
Georgia's counties or in three or more counties which are not geographically contiguous
shall conduct one such public meeting virtually and one such public meeting in the
county in which its primary business office is located. The public meetings shall be
advertised in a local newspaper of general circulation which shall be the same newspaper
in which other legal announcements of the board of education are advertised.
(2)(A)(i) On and after July 1, 2027, no proposed annual operating budget resolution
that would result in an increase in the revenues raised by the local board of education
from the levy and collection of ad valorem property taxes by an amount that exceeds
an aggregate total of 9 percent over any three-year period or the greater of 3 percent
or the percent change in the rate of economic inflation on individual taxpayers
annually as determined under the Consumer Price Index, as reported by the Bureau
of Labor Statistics of the United States Department of Labor, of the amount of such
revenues raised by the local board of education shall go into effect unless the General
Assembly enacts a local Act authorizing such increase or the electors of the local
school system have approved such budget resolution in a referendum election. In
calculating whether a proposed annual operating budget resolution would result in
such an increase in the revenues raised by the local board of education, increases in
revenue attributable to the levies of sales and use taxes collected for the purpose of
providing property tax relief shall be counted, but increases in revenue attributable
to any assessments other than those included in the determination of total net assessed
value added by reassessments, as such term is defined in Code Section 48-5-32.1, and
the levies of ad valorem property tax for costs incurred pursuant to a state of
emergency declared by any federal, state, or local emergency management agency,
official, or authority shall not be counted.
(ii) The call for and conduct of any such election shall be in the manner authorized
under paragraph (2.1) of subsection (c) of Code Section 21-2-540. The costs of any
referendum held pursuant to this paragraph shall be paid by the local board of
education. The exact ballot language shall be prescribed by the local board of
education but shall contain, at a minimum, the projected amount of revenue to be
generated by the budget resolution; the amount of revenue received by the local board
of education in the previous fiscal year; and a statement as to whether or not such
projected revenue increase is the result of an increase in the levy or rate of ad valorem
property taxes. All persons desiring to vote in favor of the budget resolution shall
vote 'Yes' and all persons opposed to the budget resolution shall vote 'No.' If more
than one-half of the votes cast are in favor of the budget resolution, then the budget
resolution shall go into effect as provided by law; otherwise, the budget resolution
shall either:
(I) Not go into effect and the local board of education shall prepare a new proposed
budget which is projected not to increase the revenues raised by the local board of
education by an amount that exceeds the 3 or 9 percent limitations provided for in
this subparagraph; or
(II) Go into effect and the local board of education shall be required to reduce its
proposed budget for the subsequent year by an amount corresponding to the
unapproved increase exceeding the 3 or 9 percent limitations provided for in this
subparagraph.
(B) A local board of education shall not be required to hold either or both of the public
meetings required under paragraph (1) of this subsection after a proposed annual
operating budget resolution has been approved in a referendum election required under
subparagraph (A) of this paragraph.
(C) Nothing in this paragraph shall be construed to require that the public meetings of
a local board of education required under paragraph (1) of this subsection shall be held
at any particular time either prior to or following the referendum election required
under subparagraph (A) of this paragraph."
SECTION 3-4.
Title 36 of the Official Code of Georgia Annotated, relating to local government, is amended
in Code Section 36-81-3, relating to establishment of fiscal year, requirement of annual
balanced budget, adoption of budget ordinances or resolutions generally, budget
amendments, and uniform chart of accounts, by revising subsection (d) as follows:
"(d) Nothing contained in this Code section shall preclude a local government from
amending its budget so as to adapt to changing governmental needs during the budget
period; provided, however, that, on and after July 1, 2027, no such amendment shall result
in an increase in the revenues raised by the unit of local government from the levy and
collection of ad valorem property taxes by an amount that exceeds an aggregate total of 9
percent over any three-year period or the greater of 3 percent or the percent change in the
rate of economic inflation on individual taxpayers annually as determined under the
Consumer Price Index, as reported by the Bureau of Labor Statistics of the United States
Department of Labor, of the amount of such revenues which would be raised by the unit
of local government; provided, further, that, in calculating whether a proposed amendment
would result in such an increase in the revenues raised by the unit of local government,
increases in revenue attributable to the levies of sales and use taxes collected for the
purpose of providing property tax relief shall be counted, but increases in revenue
attributable to any assessments other than those included in the determination of total net
assessed value added by reassessments, as such term is defined in Code Section 48-5-32.1,
and the levies of ad valorem property tax for costs incurred pursuant to a state of
emergency declared by any federal, state, or local emergency management agency, official,
or authority shall not be counted. Amendments shall be made as follows, unless otherwise
provided by charter or local law:
(1) Any increase in appropriation at the legal level of control of the local government,
whether accomplished through a change in anticipated revenues in any fund or through
a transfer of appropriations among departments, shall require the approval of the
governing authority. Such amendment shall be adopted by ordinance or resolution;
(2) Transfers of appropriations within any fund below the local government's legal level
of control shall require only the approval of the budget officer; and
(3) The governing authority of a local government may amend the legal level of control
to establish a more detailed level of budgetary control at any time during the budget
period. Said amendment shall be adopted by ordinance or resolution."
SECTION 3-5.
Said title is further amended by revising Code Section 36-81-6, relating to adoption of budget
ordinance or resolution and form of budget, as follows:
"36-81-6.
(a)(1) On a date after the conclusion of the hearing required in subsection (f) of Code
Section 36-81-5, the governing authority shall adopt a budget ordinance or resolution
making appropriations in such sums as the governing authority may deem sufficient,
whether greater or less than the sums presented in the proposed budget. The budget
ordinance or resolution shall be adopted at a public meeting which shall be advertised in
accordance with the procedures set forth in subsection (e) of Code Section 36-81-5 at
least one week prior to the meeting, except as otherwise provided in paragraph (2) of this
subsection.
(2)(A) On and after July 1, 2027, if such budget ordinance or resolution is projected
to result in an increase in the revenues raised by the unit of local government from the
levy and collection of ad valorem property taxes by an amount that exceeds an
aggregate total of 9 percent over any three-year period or the greater of 3 percent or the
percent change in the rate of economic inflation on individual taxpayers annually as
determined under the Consumer Price Index, as reported by the Bureau of Labor
Statistics of the United States Department of Labor, of the amount of such revenues
raised by the unit of local government, then such budget ordinance or resolution shall
not go into effect unless the General Assembly enacts a local Act authorizing such
increase or the electors of the unit of local government have approved such budget
ordinance or resolution in a referendum election. In calculating whether a proposed
budget ordinance or resolution would result in such an increase in the revenues raised
by the unit of local government, increases in revenue attributable to the levies of sales
and use taxes collected for the purpose of providing property tax relief shall be counted,
but increases in revenue attributable to any assessments other than those included in the
determination of total net assessed value added by reassessments, as such term is
defined in Code Section 48-5-32.1, and the levies of ad valorem property tax for costs
incurred pursuant to a state of emergency declared by any federal, state, or local
emergency management agency, official, or authority shall not be counted.
(B) The call for and conduct of any such election shall be in the manner authorized
under paragraph (2.1) of subsection (c) of Code Section 21-2-540. The costs of any
referendum held pursuant to this paragraph shall be paid by the unit of local
government adopting such budget ordinance. The exact ballot language shall be
prescribed by the governing authority adopting the budget ordinance but shall contain,
at a minimum, the projected amount of revenue to be generated by the budget
ordinance; the amount of revenue received by the unit of local government in the
previous fiscal year; and a statement as to whether or not such projected revenue
increase is the result of an increase in the levy or rate of ad valorem property taxes. All
persons desiring to vote in favor of the budget ordinance shall vote 'Yes' and all persons
opposed to the budget ordinance shall vote 'No.' If more than one-half of the votes cast
are in favor of the budget ordinance, then the budget ordinance shall go into effect as
provided by law; otherwise, the budget ordinance shall either:
(i) Not go into effect and the unit of local government shall prepare a new proposed
budget pursuant to Code Section 36-81-5 which is projected not to increase the
revenues raised by the unit of local government by an amount that exceeds the 3 or 9
percent limitations provided for in this subsection; or
(ii) Go into effect and the unit of local government shall be required to reduce its
proposed budget for the subsequent year by an amount corresponding to the
unapproved increase exceeding the 3 or 9 percent limitations provided for in this
subsection.
(b) The budget may be prepared in any form that the governing authority deems most
efficient in enabling it to make the fiscal policy decisions embodied in the budget, but such
budget shall be subject to the provisions of this article."
PART IV
SECTION 4-1.
Title 21 of the Official Code of Georgia Annotated, relating to elections, is amended in
subsection (c) of Code Section 21-2-540, relating to conduct and timing of special primaries
and special elections generally, by revising paragraph (2) and adding a new paragraph to read
as follows:
"(2) Notwithstanding any other provision of law to the contrary and except as otherwise
provided in paragraph (2.1) of this subsection, a special election to present a question to
the voters shall be held only on one of the following dates which is at least 29 days after
the date of the call for the special election:
(A) In odd-numbered years, any such special election shall only be held on the third
Tuesday in March or on the Tuesday after the first Monday in November; and
(B) In even-numbered years, any such special election shall only be held on:
(i) The date of and in conjunction with the presidential preference primary if one is
held that year;
(ii) The third Tuesday in March; provided, however, that such special election shall
occur prior to July 1, 2024, and present a question to the voters on sales and use taxes
authorized by Articles 5, 5A, and 5B of Chapter 8 of Title 48;
(iii)(ii) The date of the general primary; or
(iv)(iii) The Tuesday after the first Monday in November.
(2.1) Notwithstanding any other provision of law to the contrary, a special election to
present a question or other measure to the voters relating to an increase in revenue by
a local governing authority, including a question or measure that could result in an
increase in taxes shall be held only:
(A) In odd-numbered years, on:
(i) The third Tuesday in March; or
(ii) The Tuesday after the first Monday in November; and
(B) In even-numbered years, on:
(i) The date of the general primary; or
(ii) The Tuesday after the first Monday in November."
PART V
SECTION 5-1.
Said chapter is further amended by revising Code Section 48-5-32.1, relating to certification
of assessed taxable value of property and method of computation, resolution or ordinance
required for millage rate, and advertisement of intent to increase property tax, as follows:
"48-5-32.1.
(a) As used in this Code section, the term:
(1) 'Ad valorem tax' or 'property tax' means a tax imposed upon the assessed value of real
property.
(2) 'Certified tax digest' means the total net assessed value on the annual property tax
digest certified by the tax commissioner of a taxing jurisdiction to the department and
authorized by the commissioner for the collection of taxes, or, in the case where the
governing authority of a county whose digest has not been approved by the commissioner
has petitioned the superior court of the county for an order authorizing the immediate and
temporary collection of taxes, the temporary digest so authorized.
(3) 'Levying authority' means a county, a municipality, or a consolidated city-county
governing authority or other governing authority of a political subdivision of this state
that exercises the power to levy ad valorem taxes to carry out the governing authority's
purposes.
(4) 'Mill' means one one-thousandth of a United States dollar.
(5) 'Millage' or 'millage rate' means the levy, in mills, which is established by the
governing authority for purposes of financing, in whole or in part, the taxing jurisdiction's
expenses for its fiscal year.
(6) 'Millage equivalent' means the number of mills which would result when the total net
assessed value added by reassessments is divided by the certified tax digest and the result
is multiplied by the previous year's millage rate.
(7) 'Net assessed value' means the taxable assessed value of property after all
exemptions.
(8) 'Recommending authority' means a county, independent, or area school board of
education that exercises the power to cause the levying authority to levy ad valorem taxes
to carry out the purposes of such board of education.
(9) 'Roll-back rate' means the previous year's millage rate minus the millage equivalent
of the total net assessed value added by reassessments:
(A) As calculated and certified to the commissioner by the tax commissioner for
county and educational tax purposes; and
(B) As calculated by the collecting officer of the municipality for municipal tax
purposes.
(10) 'Taxing jurisdiction' means all the real property subject to the levy of a specific
levying authority or the recommended levy of a specific recommending authority.
(11) 'Total net assessed value added by reassessments' means the total net assessed value
added to the certified tax digest as a result of revaluation of existing real property that has
not been improved since the previous tax digest year.
(b) At the time of certification of the digest, the tax receiver or tax commissioner shall also
certify to the recommending authority and levying authority of each taxing jurisdiction the
total net assessed value added by reassessments contained in the certified tax digest for that
tax digest year of the taxing jurisdiction.
(c)(1) Whenever a recommending authority or levying authority shall propose to adopt
a millage rate which does not exceed the roll-back rate, it shall adopt that millage rate at
an advertised public meeting and at a time and place which is convenient to the taxpayers
of the taxing jurisdiction, in accordance with the procedures specified under Code
Section 48-5-32.
(2) In those instances in which the recommending authority or levying authority
proposes to establish a general maintenance and operation millage rate which would
require increases beyond the roll-back rate, the recommending authority or levying
authority shall:
(A) Advertise advertise its intent to do so and shall conduct at least three public
hearings thereon, at least one of which shall commence between the hours of 6:00 P.M.
and 7:00 P.M., inclusive, on a business weekday. The recommending authority or
levying authority shall place an advertisement in a newspaper of general circulation
serving the residents of the unit of local government and post such advertisement on the
website of the recommending or levying authority, which shall read as follows:
'NOTICE OF PROPERTY TAX INCREASE
The (name of recommending authority or levying authority) has tentatively adopted a
millage rate which will require an increase in property taxes by (percentage increase
over roll-back rate) percent.
All concerned citizens are invited to the public hearing on this tax increase to be held
at (place of meeting) on (date and time).
Times and places of additional public hearings on this tax increase are at (place of
meeting) on (date and time).
This tentative increase will result in a millage rate of (proposed millage rate) mills, an
increase of (millage rate increase above the roll-back rate) mills. Without this tentative
tax increase, the millage rate will be no more than (roll-back millage rate) mills. The
proposed tax increase for a home with a fair market value of (average home value from
previous year's digest rounded to the nearest $25,000.00) is approximately $(increase)
and the proposed tax increase for nonhomestead property with a fair market value of
(average nonhomestead property value from previous year's digest rounded to nearest
$25,000.00) is approximately $(increase).'
Simultaneously with this notice the recommending authority or levying authority shall
provide a press release to the local media; and
(B) Notify each taxpayer with property in the taxing jurisdiction, by mail directed to
the taxpayer's last known address, of the proposed intent to exceed the roll-back rate at
least ten days in advance of the first public hearing. Alternatively, the recommending
authority or levying authority may transmit the notice to the taxpayer by electronic
means at least ten days in advance of the first public hearing, if such taxpayer and
county clerk have consented in writing to service by electronic means. The county
clerk shall consolidate the required information for all taxing subdivisions relevant to
the taxpayer's property on one notice. The notice shall include, but not be limited to:
(i) The roll-back rate;
(ii) The proposed property tax revenue needed to fund the proposed budget;
(iii) The proposed millage rate based upon the proposed budget and the current year's
total assessed valuation;
(iv) The millage rate and property tax of the taxing jurisdiction on the taxpayer's
property from the previous year's tax statement;
(v) The proposed percent change in the millage rate between the previous year's tax
rate and the proposed tax rate for the current year;
(vi) The appraised value and assessed value of the taxpayer's property for the current
year;
(vii) The estimates of the tax for the current tax year on the taxpayer's property based
on the roll-back rate and the proposed millage rate; and
(viii) The dates, times, and locations of the public hearings.
(3) The advertisement shall appear at least one week prior to each hearing, be
prominently displayed, not be less than 30 square inches, and not be placed in that section
of the newspaper where legal notices appear and shall be posted on the appropriate
website at least one week prior to each hearing. In addition to the advertisement specified
under this paragraph, the levying or recommending authority may include in the notice
reasons or explanations for such tax increase.
(4) The recommending authority or levying authority shall provide interested taxpayers
of the taxing jurisdiction desiring to be heard an opportunity to present oral testimony
within reasonable time limits and without unreasonable restriction on the number of
individuals allowed to make public comment.
(4)(5) No recommending authority shall recommend and no levying authority shall levy
a millage rate in excess of the proposed millage rate as established pursuant to
paragraph (2) of this subsection without beginning anew the procedures and hearings
required by this Code section and those required by Code Section 48-5-32.
(5)(6) Any notice or hearing required under this Code section may be combined with any
notice or hearing required under Article 1 of Chapter 81 of Title 36 or Code
Section 48-5-32.
(d) Nothing contained in this Code section shall serve to extend or authorize any millage
rate in excess of the maximum millage rate permitted by law or to prevent the reduction of
the millage rate.
(e) The commissioner shall not accept a digest for review or issue an order authorizing the
collection of taxes if the recommending authority or levying authority other than municipal
governing authorities has established a millage rate that is in excess of the correct rollback
without complying fully with the procedures required by this Code section. In the event
a digest is not accepted for review by the commissioner pursuant to this subsection, it shall
be accepted for review upon satisfactory submission by such authorities of such evidence.
The levies of each of the levying authorities other than the county governing authority shall
be invalid and unenforceable until such time as the provisions of this Code section have
been met.
(f) Any recommending authority or levying authority that does not comply with the
provisions of subsection (c) of this Code section shall refund to taxpayers any property
taxes over-collected based on the amount of the levy that was in excess of the roll-back
rate. The provisions of this subsection shall not be construed as prohibiting any other
remedies available under the law.
(f)(g) The commissioner shall promulgate such rules and regulations as may be necessary
for the administration of this Code section."
SECTION 5-2.
Said chapter is further amended in Code Section 48-5-44.2, relating to base year homestead
exemption, by repealing subsections (h) and (i), revising paragraphs (2), (3), and (7) of
subsection (a), and revising subsections (d) and (e) as follows:
"(2) 'Adjusted base year assessed value' means the sum of:
(A) The previous adjusted base year assessed value;
(B) An amount equal to the difference between the current year assessed value of the
homestead and the base year assessed value of the homestead, provided that such
amount shall not exceed the total of the previous adjusted base year assessed value of
the homestead multiplied by the inflation rate for the prior year; and
(C) The value of any substantial property change, provided that no such value added
improvements to the homestead substantial property change shall be duplicated as to
the same addition, or improvement, or removal of real property.
(3) 'Base year assessed value' means:
(A) With respect to an exemption under this Code section which is first granted to a
person on such person's homestead for the 2025 taxable year, the assessed value for
taxable year 2024, including any final determination of value on appeal pursuant to
Code Section 48-5-311, of the homestead after adjustment due to any substantial
property change which occurred during or after taxable year 2024, provided that no
such adjustment shall be duplicated as to the same addition, improvement, or removal
of real property; or
(B) In all other cases, the assessed value, including any final determination of value on
appeal pursuant to Code Section 48-5-311, of the homestead from the taxable year
immediately preceding the taxable year in which the exemption under this Code section
is first granted to the applicant for such homestead after adjustment due to any
substantial property change which occurred during or after the taxable year used to
establish the base year assessed value for that homestead, provided that no such
adjustment shall be duplicated as to the same addition, improvement, or removal of real
property."
"(7) 'Substantial property change' means any increase or decrease in the assessed value
of a homestead derived from additions or improvements to, or the removal of real
property from, the homestead which occurred during or after the year in which used to
establish the base year assessed value is determined for the homestead. The assessed
value of the substantial property changes shall be established following any final
determination of value on appeal pursuant to Code Section 48-5-311."
"(d) No person shall receive the exemption granted by subsection (b) of this Code section
unless such person or person's agent files an application with the tax receiver or tax
commissioner of his or her respective local government or governments charged with the
duty of receiving returns of property for taxation, giving such information relative to
receiving such exemption as will enable such tax receiver or tax commissioner to make a
determination regarding the initial and continuing eligibility of such person for such
exemption; provided, however, that any person who had previously applied for a
homestead exemption, was allowed such homestead exemption for the 2024 immediately
preceding tax year, and remains eligible for a homestead exemption for that same
homestead property in the 2025 current tax year shall be automatically allowed the
exemption granted under subsection (b) of this Code section for that homestead without
further application. Such tax receiver or tax commissioner shall provide application forms
for this purpose.
(e)(1) The exemption granted by subsection (b) or (c) of this Code section shall be
claimed and returned as provided in Code Section 48-5-50.1. Such exemption shall be
automatically renewed from year to year so long as the owner occupies the residence as
a homestead. After a person or a person's agent has filed the proper application or is
automatically granted the homestead exemption as provided in subsection (d) of this
Code section, it shall not be necessary for such person or such person's surviving spouse
to make application thereafter for any year, and the exemption shall continue to be
allowed to such person or such person's surviving spouse. It shall be the duty of any
person granted the homestead exemption under subsection (b) or (c) of this Code section
to notify the tax receiver or tax commissioner of the local government or governments
in the event such person for any reason becomes ineligible for such exemption.
(2) In the event that an applicant becomes ineligible for the homestead exemption
granted under subsection (b) or (c) of this Code section with respect to a particular
homestead property and, thereafter, the applicant becomes eligible and applies for the
homestead exemption on such property, the base year assessed value for such homestead
shall be calculated in accordance with subparagraph (a)(3)(B) of this Code section as if
the applicant were a new applicant who had not been previously granted an exemption
under this Code section for such homestead."
SECTION 5-3.
Said chapter is further amended by revising Code Section 48-5-302, relating to time for
completion of revision and assessment of returns and submission of completed digest to
commissioner, as follows:
"48-5-302.
Each county board of tax assessors, each municipal official responsible for collecting
municipal ad valorem property taxes, and each school official responsible for collecting ad
valorem property taxes for a local school system shall complete its revision and assessment
of the returns of taxpayers in its respective county jurisdiction by July 15 of each year,
except that, in all counties jurisdictions providing for the collection and payment of ad
valorem taxes in installments, such date shall be June 1 of each year. The tax receiver or
tax commissioner shall then immediately forward one copy of the completed digest to the
commissioner for examination and approval."
SECTION 5-4.
Said chapter is further amended by revising Code Section 48-5-303, relating to correction of
mistakes in county tax digests and notification of correction, as follows:
"48-5-303.
(a)(1) The county board of tax assessors shall have authority to correct factual errors in
the tax digest when discovered within three years and when such corrections are of
benefit to the taxpayer. Such corrections, after approval of the county board of tax
assessors, shall be communicated to the taxpayer and notice shall be provided to the tax
commissioner.
(2) If the county board of tax assessors discovers a factual error in the tax digest which
is not of benefit to the taxpayer and which relates to an improperly or mistakenly applied
homestead exemption that was not due to any intentional misrepresentation or fraudulent
act on the part of the taxpayer, the tax receiver or tax commissioner shall be prohibited
from retroactively assessing the taxpayer the difference in ad valorem taxes actually paid
by the taxpayer and the amount of ad valorem taxes that would have been assessed on the
taxpayer but for the improperly or mistakenly applied homestead exemption.
(b) If a tax receiver or tax commissioner makes a mistake in the digest which is not
corrected by the county board of tax assessors or county board of equalization, the
commissioner, with the sanction of the Governor, shall correct the mistake by making the
necessary entries in the digest furnished the commissioner. The commissioner shall notify
the county governing authority and the tax collector of the county from which the digest
comes of the mistake and correction."
PART VI
SECTION 6-1.
(a) It shall be the duty of the Secretary of State to issue the call for a nonbinding, advisory
referendum election to determine whether the qualified electors of the State of Georgia desire
that the Georgia General Assembly allow Georgians to decide whether to authorize new
finance procedures for local governments and school systems for the purpose of providing
complete property tax relief for homeowners. The Secretary of State shall conduct the
referendum election as provided in this section on the date of the November, 2026, general
election. The Secretary of State shall issue the call and conduct that referendum election as
provided by general law.
(b) The ballot at the referendum election provided under this section shall have displayed
or printed thereon the following:
"( ) YES Should the Georgia General Assembly allow Georgians to decide whether
to authorize new finance procedures for local governments and school
( ) NO systems for the purpose of providing complete property tax relief for
homeowners?"
(c) It shall be the duty of the Secretary of State to tabulate and certify the results of the
referendum election and report said results to the Governor and the General Assembly
immediately following such certification.
PART VII
SECTION 7-1.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval.
SECTION 7-2.
All laws and parts of laws in conflict with this Act are repealed.