HB 1543: Chattooga County; school district ad valorem tax; homestead exemption; increase income cap

Chattooga County currently gives homeowners age 70 and older a $40,000 homestead exemption from school district property taxes, but only if their income does not exceed $20,000 a year. This bill would raise that income cap to $38,000 and phase in a larger exemption: $41,150 of assessed home value would be exempt for tax year 2027, rising to $55,000 for tax year 2028 and afterward. It also updates the definition of income to match federal adjusted gross income. Because the bill changes a local tax exemption, Georgia's constitution requires it to pass by a two-thirds vote in both the House and Senate and then go to Chattooga County voters. An election is set for November 2026. If voters approve, the changes take effect January 1, 2027. If they reject it or no election is held, the bill is automatically repealed a year after the election date.

• Raises the income cap for the Chattooga County School District senior homestead tax exemption from $20,000 to $38,000 per year.
• Increases the exemption amount from $40,000 to $41,150 of assessed home value starting tax year 2027.
• Raises the exemption further to $55,000 of assessed home value for tax year 2028 and all later years.
• Updates the definition of income to mean federal adjusted gross income under the Internal Revenue Code.
• Requires a countywide referendum in November 2026 before the changes can take effect, with automatic repeal if voters reject it or no election occurs.

Senior homeowners age 70 or older in the Chattooga County School District who qualify for the existing property tax exemption, especially those whose income falls between $20,000 and $38,000 who would newly qualify. Chattooga County election officials and the school district's tax base are also affected.

More senior homeowners in Chattooga County would become eligible for a break on their school property taxes, and those who already qualify would see a larger exemption starting in 2027 and growing further in 2028. The change depends entirely on voters approving it in a November 2026 referendum.

• Section 1 revises the definition of 'income' to mean federal adjusted gross income under the Internal Revenue Code of 1986, as amended.
• Section 2 raises the income cap to $38,000 and sets the exemption at $41,150 for tax year 2027 and $55,000 for tax year 2028 and later.
• Section 3 requires a two-thirds majority vote in both legislative chambers because the bill affects local ad valorem taxation.
• Section 4 schedules a Chattooga County School District referendum for November 2026, specifies the ballot language, and makes the election superintendent's duties mandatory and enforceable by court order.
• Section 4 also provides that the Act becomes effective January 1, 2027 if approved, or is automatically repealed 365 days after the election if rejected or not held.
• Section 5 sets the general effective date as upon the Governor's approval, except as otherwise provided for the referendum timeline.

1. 2026-05-11Effective Date 2026-05-11
2. 2026-05-11Act 585
3. 2026-05-11House Date Signed by Governor (House)
4. 2026-04-10House Sent to Governor (House)
5. 2026-03-31Senate Passed/Adopted (Senate)
6. 2026-03-31Senate Third Read (Senate)
7. 2026-03-27Senate Read Second Time (Senate)
8. 2026-03-27Senate Committee Favorably Reported (Senate)

• Eddie Lumsden (R, HD-012)Primary sponsor
• Clint Dixon (R, SD-045)

1. PassedHouse voteMarch 23, 2026

   158 yea, 0 nay (12 not voting, 6 absent)

   Local Calendar : House Vote #739

2. PassedSenate voteMarch 31, 2026

   44 yea, 0 nay (2 not voting, 8 absent)

   Passage: Senate Vote #887

• property taxes
• homestead exemption
• senior citizens
• Chattooga County
• school district taxes