HB 1503: Covington, City of; ad valorem tax for municipal purposes; provide homestead exemption

Currently, homeowners in the City of Covington pay municipal property taxes based on the assessed value of their home. This bill would create a new homestead exemption that wipes out the entire assessed value of a qualifying homestead for purposes of city ad valorem (property) taxes for municipal purposes, meaning eligible residents would owe no city property tax on their primary home. Homeowners would have to apply once with the city to prove eligibility, and the exemption would then renew automatically each year unless the person becomes ineligible and must notify the city. The exemption would not reduce state, county, or school district property taxes, only the city's municipal portion, and it stacks on top of any other homestead exemptions already available. Because the bill affects local taxation, it requires a two-thirds vote in the General Assembly and must be approved by Covington voters in a referendum on November 3, 2026. If approved, it takes effect January 1, 2027; if rejected, the law is automatically repealed.

• Creates a homestead exemption that eliminates the entire assessed value of a Covington resident's home from city municipal property taxes.
• Requires homeowners to file a one-time application with the city to prove eligibility, after which the exemption renews automatically each year.
• Requires homeowners who become ineligible to notify the city, so it can withdraw the exemption.
• Limits the exemption to city municipal taxes only, leaving state, county, and school district property taxes unaffected.
• Requires the bill to pass by two-thirds vote in the General Assembly and be approved by Covington voters in a November 2026 referendum before taking effect.

Homeowners in the City of Covington who claim their property as a homestead, the city government which must process applications and run the exemption program, and Newton County election officials who must administer the required voter referendum.

If approved by voters, qualifying Covington homeowners would stop paying city municipal property taxes on their homes entirely, shifting the city's tax burden and revenue mix. The change depends entirely on a November 2026 public vote, so residents' taxes would only change if the referendum passes.

• Section 1 defines 'homestead' using the existing state definition (O.C.G.A. 48-5-40) and grants an exemption covering the total assessed value of a Covington resident's homestead from municipal ad valorem taxes.
• Section 1 requires homeowners to file an application with the city to claim the exemption, which then renews automatically unless the person becomes ineligible.
• Section 1 specifies the exemption does not apply to state, county, or school district property taxes and applies starting with tax years beginning January 1, 2027.
• Section 2 requires a two-thirds majority vote in both the House and Senate for the Act to become law, per the Georgia Constitution.
• Section 3 calls for a referendum on November 3, 2026, letting Covington voters approve or reject the exemption, with the tax change taking effect only if a majority votes yes.
• Section 3 provides that if voters reject the measure or no election is held, the entire Act is automatically repealed the following January 1.
• Section 4 sets the effective date as upon the Governor's approval, except for the referendum provisions in Section 3.

1. 2026-05-11Effective Date 2026-05-11
2. 2026-05-11Act 573
3. 2026-05-11House Date Signed by Governor (House)
4. 2026-04-06House Sent to Governor (House)
5. 2026-03-20Senate Passed/Adopted (Senate)
6. 2026-03-20Senate Committee Favorably Reported (Senate)
7. 2026-03-19Senate Read and Referred (Senate)
8. 2026-03-18House Passed/Adopted (House)

• Tim Fleming (R, HD-114)Primary sponsor
• Clint Crowe (R, HD-118)

1. PassedHouse voteMarch 18, 2026

   161 yea, 2 nay (7 not voting, 6 absent)

   Local Calendar : House Vote #712

2. PassedSenate voteMarch 20, 2026

   44 yea, 0 nay (5 not voting, 5 absent)

   Local Consent Calendar: Senate Vote #761

• property taxes
• homestead exemption
• Covington
• local referendum
• municipal taxes