HB 1581: Fayetteville, City of; ad valorem tax for municipal purposes; provide homestead exemption

This bill creates a new homestead exemption (a break on property taxes for a primary home) from City of Fayetteville taxes used for municipal purposes, meaning city government operations rather than county, school, or state taxes. Instead of a fixed dollar exemption, the amount would float each year based on how much city property tax collections exceed what was collected in 2025, the designated base year. If city tax collections in a given year grow by more than the full amount collected in 2025, the excess is set aside and used the following year to fund an equal-dollar exemption for every homesteaded property in the city. If growth does not exceed that threshold, the exemption for the next year is zero. Homeowners must apply once to claim it, and it renews automatically after that. Because this changes local tax policy, Georgia's Constitution requires it to pass by a two-thirds vote in both legislative chambers and then be approved by Fayetteville voters in a November 2026 referendum before taking effect on January 1, 2027.

• Creates a homestead exemption from City of Fayetteville municipal ad valorem (property) taxes with a value that changes year to year rather than staying fixed.
• Ties the exemption's size to the amount by which a given year's city tax collections exceed the amount collected during the 2025 base year.
• Requires city collections to exceed 100 percent of the 2025 base amount before any exemption funds are set aside for the next year's homeowners.
• Sets the exemption at zero for the next tax year if collections do not exceed the 2025 base amount.
• Requires a citywide voter referendum in November 2026 before the exemption can take effect on January 1, 2027.
• Requires homeowners to file one application with the city to claim the exemption, after which it renews automatically.

Homeowners in the City of Fayetteville who claim a homestead exemption on their primary residence, the city's governing authority which must calculate and administer the exemption each year, and Fayetteville voters who must approve the measure in a November 2026 referendum.

If approved by voters, Fayetteville homeowners could see a property tax reduction on their city tax bill in years when city tax collections grow substantially, but they would get no reduction in years when collections do not exceed the 2025 baseline, making the savings unpredictable year to year.

• Section 1 defines 'base year' as 2025 and limits the exemption to ad valorem taxes for municipal purposes, excluding state, county, and school taxes.
• Section 1(c) requires the city to segregate excess tax collections above the 2025 base amount and use them to fund the next year's exemption, capped at the segregated fund's value.
• Section 1(d) and (e) require a one-time application for the exemption, which then renews automatically unless the homeowner becomes ineligible.
• Section 1(g) applies the exemption starting with tax years on or after 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 requires a citywide referendum on the Tuesday after the first Monday in November 2026, with the Act automatically repealed if voters reject it or the election is not held.
• Section 4 makes the Act effective upon the Governor's approval, except for the referendum requirement in Section 3.

1. 2026-05-12Effective Date 2026-05-12
2. 2026-05-12Act 685
3. 2026-05-12House 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)

• Josh Bonner (R, HD-073)Primary sponsor
• Karen Mathiak (R, HD-082)
• Derrick Jackson (D, HD-068)
• Debra Bazemore (D, HD-069)

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
• Fayetteville
• local referendum
• municipal taxes