---
title: HB 1503. Covington, City of; ad valorem tax for municipal purposes; provide homestead exemption
collection: bills
id: 2025-2026/hb1503
cite_as: HB 1503, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1503
md_url: https://georgiacommons.org/bills/2025-2026/hb1503.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1503/text
source_url: https://www.legis.ga.gov/legislation/73869
date: 2026-05-11
status: passed
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: 886
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1503.md?full=1
bill_number: HB 1503
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-05-11
last_action: Effective Date 2026-05-11
sponsors:
  - Tim Fleming
  - Clint Crowe
text_version: Enrolled
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1503/2025
upstream_id: 2128610
summaries_model: claude-sonnet-5
topic_tags:
  - property taxes
  - homestead exemption
  - Covington
  - local referendum
  - municipal taxes
---

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

## Text

House Bill 1503 (AS PASSED HOUSE AND SENATE)
By: Representatives Fleming of the 114th and Crowe of the 118th
A BILL TO BE ENTITLED
AN ACT
To provide a homestead exemption from City of Covington ad valorem taxes for municipal
purposes for the total amount of the assessed value of the homestead for residents of that city;
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 compliance with
constitutional requirements; to provide for a referendum, effective dates, automatic repeal,
mandatory execution of election, and judicial remedies regarding failure to comply; to
provide for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
(a) As used in this Act, the term:
(1) "Ad valorem taxes for municipal purposes" means all ad valorem taxes for municipal
purposes levied by, for, or on behalf of the City of Covington, including, but not limited
to, any ad valorem taxes to pay interest on and to retire municipal bonded indebtedness.
(2) "Homestead" means homestead as defined and qualified in Code Section 48-5-40 of
the O.C.G.A., as amended.
(b) Each resident of the City of Covington is granted an exemption on such person's
homestead from City of Covington ad valorem taxes for municipal purposes for the total
amount of the assessed value of such homestead.
(c) A person shall not receive the homestead exemption granted by subsection (b) of this
section unless such person or person's agent files an application with the governing authority
of the City of Covington, or the designee thereof, giving such information relative to
receiving such exemption as will enable the governing authority of the City of Covington,
or the designee thereof, to make a determination regarding the initial and continuing
eligibility of such person for such exemption. The governing authority of the City of
Covington, or the designee thereof, shall provide application forms for this purpose.
(d) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1 of
the O.C.G.A., as amended. The exemption shall be automatically renewed from year to year
so long as the person granted the homestead exemption under subsection (b) of this section
occupies such residence as a homestead. After a person has filed the proper application as
provided in subsection (c) of this section, it shall not be necessary to make application
thereafter for any year, and such 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
section to notify the governing authority of the City of Covington, or the designee thereof,
in the event that such person for any reason becomes ineligible for such exemption.
(e) The exemption granted by subsection (b) of this section shall not apply to or affect any
state ad valorem taxes, county ad valorem taxes for county purposes, or county or
independent school district ad valorem taxes for educational purposes. The homestead
exemption granted by subsection (b) of this section shall be in addition to and not in lieu of
any other homestead exemption applicable to City of Covington ad valorem taxes for
municipal purposes.
(f) The exemption granted by subsection (b) of this 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 municipal election superintendent of the City of Covington shall call and conduct an
election as provided in this section for the purpose of submitting this Act to the electors of
the City of Covington for approval or rejection. The municipal election superintendent shall
conduct that election on the Tuesday after the first Monday in November, 2026, and shall
issue the call and conduct that election as provided by general law. The municipal election
superintendent 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 Newton
County. The ballot shall have written or printed thereon the words:
"( ) YES Shall the Act be approved which provides a homestead exemption from City
of Covington ad valorem taxes for municipal purposes for the total amount
( ) NO of the assessed value of the homestead for residents of that city?"
All persons desiring to vote for approval of the Act shall vote "Yes," and all persons desiring
to vote for rejection of the Act shall vote "No." If more than one-half of the votes cast on
such question are for approval of the Act, Section 1 of this Act shall become of full force and
effect on January 1, 2027. If the Act is not so approved or if the election is not conducted
as provided in this section, Section 1 of this Act shall not become effective, and this Act shall
be automatically repealed on the first day of January immediately following that election
date. The expense of such election shall be borne by the City of Covington. It shall be the
municipal election superintendent's duty to certify the result thereof to the Secretary of State.
The provisions of this section shall be mandatory upon the municipal election superintendent
and are not intended as directory. If the municipal election superintendent fails or refuses
to comply with this section, any elector of the City of Covington may apply for a writ of
mandamus to compel the municipal election superintendent to perform his or her duties
under this section. If the court finds that the municipal election superintendent has not
complied with this section, the court shall fashion appropriate relief requiring the municipal
election superintendent to call and conduct such election on the date required by this section
or on the next date authorized for special elections provided for in Code Section 21-2-540
of the O.C.G.A.
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.

House Bill 1503 would give Covington homeowners a full exemption from the city's municipal property taxes on their homestead, pending voter approval in a November 2026 referendum.

### Plain-language summary

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.

### What it does

- 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.

### Who it affects

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.

### Why it matters

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.

### Key provisions

- 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.

## Status

- Status: Passed (2026-05-11)
- Last action: Effective Date 2026-05-11 (2026-05-11)
- Sponsors: Tim Fleming, Clint Crowe
- Official page: https://www.legis.ga.gov/legislation/73869

> The history, votes, and amendments (886 characters) are at https://georgiacommons.org/bills/2025-2026/hb1503.md?full=1