---
title: HB 1581. Fayetteville, City of; ad valorem tax for municipal purposes; provide homestead exemption
collection: bills
id: 2025-2026/hb1581
cite_as: HB 1581, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1581
md_url: https://georgiacommons.org/bills/2025-2026/hb1581.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1581/text
source_url: https://www.legis.ga.gov/legislation/74264
date: 2026-05-12
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: 887
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1581.md?full=1
bill_number: HB 1581
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-05-12
last_action: Effective Date 2026-05-12
sponsors:
  - Josh Bonner
  - Karen Mathiak
  - Derrick Jackson
  - Debra Bazemore
text_version: Enrolled
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1581/2025
upstream_id: 2136404
summaries_model: claude-sonnet-5
topic_tags:
  - property taxes
  - homestead exemption
  - Fayetteville
  - local referendum
  - municipal taxes
---

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

## Text

House Bill 1581 (AS PASSED HOUSE AND SENATE)
By: Representatives Bonner of the 73rd, Mathiak of the 82nd, Jackson of the 68th, and
Bazemore of the 69th
A BILL TO BE ENTITLED
AN ACT
To provide a homestead exemption from City of Fayetteville ad valorem taxes for municipal
purposes in a floating proportional amount based upon any increased property tax collections
that exceed the value of property taxes collected in tax year 2025; 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 Fayetteville, including, but not limited
to, any ad valorem taxes to pay interest on and to retire municipal bonded indebtedness.
(2) "Base year" means the taxable year beginning on January 1, 2025.
(3) "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 Fayetteville is granted an exemption on such person's
homestead from City of Fayetteville ad valorem taxes for municipal purposes in an amount
authorized by and calculated pursuant to subsection (c) of this section as determined by the
governing authority of the City of Fayetteville. Such homestead exemption shall commence
on January 1, 2027. The value of that property in excess of such exempted amount shall
remain subject to taxation.
(c)(1) In any tax year subsequent to the base year, the governing authority of the City of
Fayetteville shall determine the amount of ad valorem taxes for municipal purposes
collected from all properties that is in excess of the ad valorem taxes for municipal
purposes collected from all properties in the base year.
(2) If the excess amount of ad valorem taxes for municipal purposes collected from all
properties in a particular tax year exceeds 100 percent of the ad valorem taxes for
municipal purposes collected from all properties in the base year, the full value of such tax
collections exceeding such amount shall be segregated from all other proceeds of the ad
valorem taxes for municipal purposes collected in such tax year, and such segregated funds
shall be maintained to offset the cost of the exemption provided by this Act in the next
subsequent tax year. As soon as the tax digest for the next subsequent tax year is approved,
the governing authority of the City of Fayetteville shall calculate the dollar value to be
equally applied to all properties receiving the exemption provided for by this Act in such
next subsequent tax year. The value of the exemption to be provided each year shall be at
the discretion of the governing authority of the City of Fayetteville and which value may
be set at an amount that does not use all of the segregated funds provided for in this
paragraph. In the event that the value of the exemption set in a particular year does not use
all of the segregated funds, the remainder of such funds shall be deposited in the general
fund of the city. In no event shall the value of the exemption be set at an amount that
would exceed the value of the segregated funds provided for in this paragraph for a
particular year. The segregated amount from the previous tax year, plus any interest earned
on such segregated funds, shall be utilized as provided for in this paragraph.
(3) If the excess amount of ad valorem taxes for municipal purposes collected from all
properties in a particular tax year is negative or does not exceed 100 percent of the ad
valorem taxes for municipal purposes collected from all properties in the base year, the
value of the homestead exemption provided by this Act for the next subsequent tax year
shall be zero dollars.
(d) 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 Fayetteville, giving such information relative to receiving such exemption as
will enable such governing authority to make a determination regarding the initial and
continuing eligibility of such person for such exemption. The City of Fayetteville shall
provide application forms for this purpose.
(e) 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 (d) 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 Fayetteville, or the designee thereof,
in the event that such person for any reason becomes ineligible for such exemption.
(f) 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 Fayetteville ad valorem taxes for
municipal purposes.
(g) 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 Fayetteville 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 Fayetteville for approval or rejection. The municipal election superintendent shall
conduct that election on the Tuesday following 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 Fayette
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 Fayetteville ad valorem taxes for municipal purposes in a floating
( ) NO proportional amount based upon the amount of property taxes collected in
a particular tax year that exceed the value of property taxes collected in tax
year 2025?"
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 Fayetteville. 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 Fayetteville 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.

A local bill from the Georgia General Assembly would give Fayetteville homeowners a floating property tax break tied to how much city tax collections grow above 2025 levels, pending voter approval in November 2026.

### Plain-language summary

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.

### What it does

- 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.

### Who it affects

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.

### Why it matters

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.

### Key provisions

- 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.

## Status

- Status: Passed (2026-05-12)
- Last action: Effective Date 2026-05-12 (2026-05-12)
- Sponsors: Josh Bonner, Karen Mathiak, Derrick Jackson, Debra Bazemore
- Official page: https://www.legis.ga.gov/legislation/74264

> The history, votes, and amendments (887 characters) are at https://georgiacommons.org/bills/2025-2026/hb1581.md?full=1