HB 1558: Palmetto, City of; ad valorem tax for municipal purposes; provide homestead exemption

This bill creates a new homestead exemption for older homeowners in the City of Palmetto, located in Coweta and Fulton counties. Residents who are 65 or older would have their homestead's full assessed value exempted from City of Palmetto property taxes used for municipal purposes, meaning they would owe no city property tax on their primary home. The exemption would not apply to state, county, or school district property taxes. To qualify, a person must apply with the city and show they meet the age requirement as of January 1 of the application year. Once granted, the exemption renews automatically each year without needing reapplication, though the homeowner must notify the city if they become ineligible. Because this changes local tax law, the Georgia Constitution requires the bill to pass by a two-thirds vote in both chambers, and it also requires approval by Palmetto voters in a November 2026 referendum. If approved, the exemption starts for tax years beginning January 1, 2027; if rejected or the election isn't held, the bill repeals itself automatically.

• Creates a new property tax exemption for City of Palmetto residents age 65 or older, covering the full assessed value of their homestead for city taxes.
• Requires homeowners to apply once with the city to prove age and eligibility, after which the exemption renews automatically each year.
• Limits the exemption to city property taxes only, leaving state, county, and school district property taxes unaffected.
• Requires a November 2026 referendum where Palmetto voters must approve the exemption before it can take effect.
• Sets an automatic repeal of the entire Act if voters reject it or if the election is not properly held.
• Sets the exemption to begin applying to tax years starting January 1, 2027, if approved.

Homeowners age 65 and older living in the City of Palmetto, the city's governing authority and election superintendent who must administer the exemption and referendum, and indirectly the city's tax base since exempted senior homes would no longer contribute city property tax revenue.

If voters approve it, eligible senior homeowners in Palmetto would no longer pay any city property tax on their primary residence, potentially saving them money each year, while the city would need to make up that lost revenue from other sources or the remaining tax base.

• Section 1 defines key terms and grants a homestead exemption equal to the full assessed value of the home for city ad valorem taxes for residents 65 or older.
• Section 1(c) and (d) require an initial application with automatic annual renewal, following procedures in O.C.G.A. § 48-5-50.1.
• Section 1(e) clarifies the exemption applies only to city taxes, not state, county, or school district taxes, and replaces rather than adds to other city homestead exemptions.
• Section 1(f) sets the exemption to apply to tax years beginning on or after January 1, 2027.
• Section 2 requires a two-thirds majority vote in both legislative chambers to satisfy the Georgia Constitution's requirements for local tax exemptions.
• Section 3 mandates a November 2026 referendum in Palmetto, specifies the ballot language, and provides for automatic repeal of the Act if voters reject it or the election isn't held.
• Section 4 sets the general effective date as approval by the Governor, except for the referendum provisions in Section 3.

1. 2026-05-11Effective Date 2026-05-11
2. 2026-05-11Act 593
3. 2026-05-11House Date Signed by Governor (House)
4. 2026-04-10House Sent to Governor (House)
5. 2026-04-02Senate Passed/Adopted (Senate)
6. 2026-04-02Senate Committee Favorably Reported (Senate)
7. 2026-03-27Senate Read and Referred (Senate)
8. 2026-03-27House Passed/Adopted (House)

• Lydia Glaize (D, HD-067)Primary sponsor
• Robert Dawson (D, HD-065)

1. PassedHouse voteMarch 27, 2026

   153 yea, 0 nay (20 not voting, 3 absent)

   Local Calendar : House Vote #772

2. PassedSenate voteApril 2, 2026

   49 yea, 0 nay (3 not voting, 2 absent)

   Local Consent Calendar: Senate Vote #927

• property taxes
• homestead exemption
• senior citizens
• City of Palmetto
• local referendum