---
title: 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
collection: bills
id: 2025-2026/hb1387
cite_as: HB 1387, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1387
md_url: https://georgiacommons.org/bills/2025-2026/hb1387.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1387/text
source_url: https://www.legis.ga.gov/legislation/73424
date: 2026-02-24
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1387.md?full=1
bill_number: HB 1387
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-02-19
last_action: House Second Readers
sponsors:
- Joseph Gullett
- Martin Momtahan
- Brad Thomas
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1387/2025
upstream_id: 2120612
summaries_model: claude-sonnet-5
topic_tags:
- property taxes
- homestead exemption
- data centers
- statewide referendum
- Georgia constitutional amendment
---
# 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
## Text
House Bill 1387
By: Representatives Gullett of the 19th, Momtahan of the 17th, and Thomas of the 21st
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated,
relating to property tax exemptions and deferral, so as to provide for a state-wide homestead
exemption from ad valorem taxes in an amount as determined from the proceeds generated
from the collection of certain ad valorem property taxes on data centers; to provide for
definitions; to specify the terms and conditions of the exemption and the procedures relating
thereto; to provide for applicability; to provide for related matters; to provide for compliance
with constitutional requirements; to provide for a referendum, effective dates, and automatic
repeal; to provide for contingent repeal; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article 2 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to
property tax exemptions and deferral, is amended by adding a new Code section to read as
follows:
"48-5-44.3.
(a) For purposes of this Code section, the term:
(1) 'Ad valorem taxes' means all ad valorem taxes levied by, for, or on behalf of the state
or any county, consolidated government, municipality, or local school district in this
state, except for any ad valorem taxes levied to pay interest on and to retire bonded
indebtedness.
(2) 'Base year' means the taxable year beginning on January 1 immediately following the
first opening of a data center in this state or tax year 2027, whichever is later.
(3) 'Data center' means:
(A) A structure, group of structures, or infrastructure within an existing structure for
the central housing, interconnection and operation of information technology, and
network telecommunications equipment for the provision of data storage, data
processing, or data transport services; and
(B) All related facilities and infrastructure for power distribution, environmental
control, cooling, and security required to deliver the desired service with respect to the
specific data center which are only connected to data center operation and would not
have an impact on an electric grid.
(4) 'Homestead' means homestead as defined and qualified in Code Section 48-5-40, as
amended.
(5) 'Tax official' means the tax receiver or tax commissioner of the respective local
government or governments charged with the duty of receiving returns of property for
taxation for administration of the homestead exemption provided for by this Code
section.
(b)(1) Each resident of this state is granted an exemption on that person's homestead
from ad valorem taxes in an amount authorized by and calculated pursuant to subsection
(c) of this Code section as determined by the tax official of his or her respective local
government or governments charged with the duty of receiving returns of property for
taxation, including any final determination of value on appeal pursuant to Code
Section 48-5-311.
(2) Except as provided for in subsection (d) of this Code section, no exemption provided
for in this subsection shall transfer to any subsequent owner of the property, and the
assessed value of the property shall be as provided by law.
(c)(1) In any tax year for which ad valorem property taxes are collected from one or
more data centers located in the respective jurisdiction of a local government or
governments of a county, consolidated government, municipality, or local school district
in this state, the respective tax official shall determine the excess amount of ad valorem
property tax collections for all such data centers by calculating the difference between the
ad valorem property taxes collected from data centers in such tax year and the ad valorem
property taxes collected from data centers in the base year.
(2) If the excess amount of ad valorem property tax collections from data centers is
positive, the full value of such excess amount shall be segregated from all other proceeds
of the ad valorem property tax collected in such tax year, and such funds shall be
maintained to offset the cost of the exemption provided by this Code section in the next
subsequent tax year. As soon as the tax digest for the next subsequent tax year is
approved, the tax official shall calculate the equable proportional share of such excess
amount to be applied to all properties receiving the exemption provided for by this Code
section in such next subsequent tax year. The tax official shall then provide such excess
amount from the previous tax year to the respective local governing authority of a county,
consolidated government, municipality, or local school district to offset the cost of the
homestead exemption provided by this Code section in such next subsequent tax year.
(3) If the excess amount of ad valorem property tax collections from data centers is
negative, the value of the homestead exemption provided by this Code section for the
next subsequent tax year shall be zero dollars.
(d) The surviving spouse of the person who has been granted the exemption provided for
in subsection (b) of this Code section shall continue to receive the exemption provided
under subsection (b) of this Code section, so long as such surviving spouse continues to
occupy the residence as a homestead.
(e) A person shall not receive the homestead exemption granted by subsection (b) of this
Code section unless such person or person's agent files an application with the tax official
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 official to make a determination regarding the initial and
continuing eligibility of such person for such exemption, or has already filed for and is
receiving a homestead exemption and such existing application provides sufficient
information to make such determination of eligibility. Such tax official shall provide
application forms for this purpose.
(f) The homestead exemption provided in subsection (b) 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 as provided
in subsection (e) of this Code section, it shall not be necessary to make application
thereafter for any year, and the exemption shall continue to be allowed to such person. It
shall be the duty of any person granted the homestead exemption under subsection (b) of
this Code section to notify the tax official of the appropriate local government or
governments in the event such person for any reason becomes ineligible for such
exemption.
(g) The homestead exemption granted by subsection (b) of this Code section shall be in
addition to and not in lieu of any other homestead exemption applicable to ad valorem
taxes.
(h) The exemption granted by subsection (b) of this Code section shall apply to all taxable
years beginning on or after January 1, 2027."
SECTION 2.
In accordance with the requirements of Article VII, Section II of the Constitution of the State
of Georgia, this Act shall not become law unless it receives the requisite two-thirds' majority
vote in both the Senate and the House of Representatives.
SECTION 3.
The Secretary of State shall call and conduct an election as provided in this section for the
purpose of submitting Section 1 of this Act to the electors of the entire state for approval or
rejection. The Secretary of State shall conduct such election no later than the Tuesday next
following the first Monday in November, 2026, and shall issue the call and conduct such
election as provided by general law. The Secretary of State shall cause the date and purpose
of the election to be published once a week for two weeks immediately preceding the date
thereof in the official organ of each county in the state. The ballot shall have written or
printed thereon the words:
"( ) YES Shall the Act be approved which provides a state-wide homestead
( ) NO exemption from ad valorem taxes of up to 100 percent as determined from
the proceeds generated from the collection of certain ad valorem property
taxes on data centers?"
All persons desiring to vote for approval of Section 1 of this Act shall vote "Yes," and all
persons desiring to vote for rejection of Section 1 of this Act shall vote "No." If more than
one-half of the votes cast on such question are for approval of Section 1 of this Act, Section 1
of this Act shall become of full force and effect on January 1, 2027, only if an amendment
to the Constitution to provide for local governments to have the option to offer a state-wide
homestead exemption from ad valorem taxes in an amount equal to any amount by which the
current year assessed value of a homestead exceeds the inflation rate from the adjusted base
year value of such homestead as provided by general law is ratified by the voters at the
November, 2026, state-wide general election. If such an amendment is not so ratified, then
Section 1 of this Act shall not become effective and shall stand repealed on January 1, 2027.
If Section 1 of this Act is not so approved, if the election is not conducted, or if the
constitutional amendment is not ratified as provided in this section, Section 1 of this Act shall
not become effective and Section 1 of this Act shall be automatically repealed on the first day
of January immediately following such election date. It shall be the duty of each county
election superintendent to certify the results thereof to the Secretary of State.
SECTION 4.
Except as otherwise provided in Section 3 of this Act, this Act shall become effective upon
its approval by the Governor or upon its becoming law without such approval.
SECTION 5.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
A Georgia House bill would create a state-wide homestead exemption funded by the extra property taxes collected from data centers, but it would only take effect if voters approve both this measure and a related constitutional amendment in November 2026.
### Plain-language summary
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.
### What it does
- 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.
### Who it affects
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.
### Why it matters
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.
### Key provisions
- 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.
## Status
- Status: Introduced (2026-02-19)
- Last action: House Second Readers (2026-02-24)
- Sponsors: Joseph Gullett, Martin Momtahan, Brad Thomas
- Official page: https://www.legis.ga.gov/legislation/73424
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb1387.md?full=1