HB 1565: Lee County; school district ad valorem tax; provide homestead exemption

This bill applies only to the Lee County school district. It creates a new homestead exemption, meaning a break on property taxes for a primary home, that would wipe out the entire assessed value of a qualifying homestead for purposes of Lee County school district property taxes used for education. To qualify, a homeowner must be 80 years of age or older and have income, combined with a spouse who also lives there, of $40,000 or less for the prior year. The exemption does not apply to state, county, municipal, or independent school district property taxes, and it stacks on top of any other homestead exemption the person already receives. Homeowners must apply through the Lee County tax commissioner and renew each year by certifying their income still qualifies. Because the bill affects a constitutional tax exemption, it needed a two-thirds vote in both the House and Senate, and it still must be approved by Lee County school district voters in a November 2026 referendum. If approved, the exemption starts with the 2027 tax year; if rejected, the whole Act repeals itself about a year later.

• Creates a homestead exemption that eliminates the full assessed value of a qualifying home from Lee County school district property taxes for education.
• Limits eligibility to residents 80 years of age or older whose income, combined with a spouse living in the home, does not exceed $40,000 for the prior year.
• Requires homeowners to apply with the Lee County tax commissioner and to annually certify continued eligibility to keep the exemption.
• Excludes the exemption from applying to state, county, municipal, or independent school district taxes, and from taxes used to pay off school bonds.
• Requires a countywide referendum in Lee County school district in November 2026 before the exemption can take effect.
• Sets automatic repeal of the entire Act if voters reject it or if the election is not properly held.

Homeowners age 80 or older in the Lee County school district with income of $40,000 or less, including retirees receiving Social Security or pension income; the Lee County tax commissioner's office, which processes applications; and the Lee County school district, which bears election costs and would receive less tax revenue from qualifying homeowners.

Eligible senior homeowners in Lee County would owe no school property tax on their home, potentially saving them a significant annual amount, while the school district would collect less revenue from that group. The change only happens if voters approve it in a November 2026 referendum.

• Section 1 defines key terms including 'senior citizen' (80 or older), 'income' (Georgia taxable income plus certain retirement and disability benefits), and 'homestead' by reference to existing state law (O.C.G.A. § 48-5-40).
• Section 1(b) sets the core exemption: full assessed value exemption from Lee County school district education taxes for qualifying seniors with income of $40,000 or less.
• Section 1(c) and (d) require an application to the Lee County tax commissioner and annual certification for renewal, with a duty to report if a person becomes ineligible.
• Section 1(e) clarifies the exemption does not apply to state, county, municipal, or independent school district taxes and stacks with other existing exemptions.
• Section 1(f) sets the exemption to apply starting with tax years beginning on or after January 1, 2027.
• Section 2 requires a two-thirds majority vote in both legislative chambers because the bill affects a constitutional tax provision.
• Section 3 requires a Lee County school district referendum on the November 2026 ballot, with automatic repeal of the Act 365 days after the election if voters reject it or if the election is not properly conducted.
• Section 4 sets the Act's effective date as approval by the Governor, except for the referendum timing set in Section 3.

1. 2026-05-11Effective Date
2. 2026-05-11Act 599
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)

• Bill Yearta (R, HD-152)Primary sponsor

1. PassedHouse voteMarch 27, 2026

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

   Local Calendar: House Vote #772

2. PassedSenate voteApril 2, 2026

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

   LOCAL CONSENT CALENDAR: Senate Vote #927

• property taxes
• homestead exemption
• Lee County
• senior citizens
• school funding