HB 1387: Ad valorem tax; state-wide homestead exemption in an amount as determined from proceeds generated from collection of certain ad valorem property taxes on data centers

Data centers in Georgia pay property taxes just like other property, but this bill would use the growth in that tax revenue to fund a break on property taxes for a primary home statewide. Each year, local tax officials would compare data center property tax collections to a fixed base year and calculate the extra amount collected. That extra money would go toward reducing homeowners' property tax bills the following year. If data center tax collections fall below the base year in any year, the homestead exemption would be zero for the next year. The exemption would apply on top of any other homestead exemption a homeowner already receives, and it would pass automatically to a surviving spouse who keeps living in the home. Because this changes property tax policy, the bill requires a two-thirds vote in both legislative chambers and a statewide voter referendum in November 2026. It would only become law if voters approve it and a separate constitutional amendment allowing this kind of exemption is also ratified; otherwise it repeals automatically on January 1, 2027.

• Creates a new homestead exemption (a break on property taxes for a primary home) funded by the extra property tax revenue collected from data centers each year.
• Requires local tax officials to compare each year's data center tax collections to a fixed base year and calculate any surplus to fund the exemption.
• Sets the exemption to zero for a given year if data center tax collections fall below the base year amount.
• Allows the exemption to continue automatically for a surviving spouse who keeps occupying the home.
• Requires a two-thirds vote in the General Assembly and a statewide voter referendum in November 2026 before the exemption can take effect.
• Makes the exemption's survival contingent on voters also ratifying a related constitutional amendment; otherwise the law repeals automatically on January 1, 2027.

Georgia homeowners who qualify for a homestead exemption would receive the new tax break. Data center operators are the source of the funding since the exemption depends on the property taxes they pay. County, municipal, and school district tax officials would administer the calculations, and voters statewide must approve the measure in a referendum.

If approved by voters, homeowners statewide could see a reduction in their property tax bills tied directly to how much extra tax revenue data centers generate each year. But the benefit is unpredictable since it depends on data center tax collections rising each year, and the whole measure could fail to take effect if either the referendum or the linked constitutional amendment does not pass.

• Section 1 adds new Code Section 48-5-44.3, defining 'data center' broadly to include the physical structures and related power, cooling, and security infrastructure used for data storage or processing.
• Section 1 sets the 'base year' as the tax year after a data center first opens in Georgia, or tax year 2027, whichever is later.
• Section 1 requires tax officials to calculate the excess data center property tax revenue collected each year compared to the base year and use it to fund the homestead exemption the following year.
• Section 1 states the exemption is zero dollars in any year where data center tax collections come in below the base year level.
• Section 1 makes the exemption apply to tax years beginning on or after January 1, 2027, and lets it continue for a surviving spouse who still lives in the home.
• Section 2 requires a two-thirds majority vote in both the Georgia House and Senate for the bill to become law, as required by the state constitution.
• Section 3 requires the Secretary of State to hold a statewide referendum by November 2026, with the exemption taking effect only if voters approve it and a related constitutional amendment is also ratified.
• Section 3 provides for automatic repeal of the exemption on January 1, 2027 if the referendum fails, is not held, or the constitutional amendment is not ratified.

1. 2026-02-24House Second Readers (House)
2. 2026-02-20House First Readers (House)
3. 2026-02-19House Hopper (House)

• Joseph Gullett (R, HD-019)Primary sponsor
• Martin Momtahan (R, HD-017)
• Brad Thomas (R, HD-021)

• property taxes
• homestead exemption
• data centers
• statewide referendum
• Georgia constitutional amendment