HB 1582: Fayette County; school district ad valorem tax; provide homestead exemption

This bill creates a new homestead exemption (a break on property taxes for a primary home) from Fayette County school district property taxes. Unlike a fixed-dollar exemption, its value would change each year depending on how much total school tax collections rise above what was collected in the 2025 base year. If collections in a given year grow by more than 100 percent of the 2025 amount, the extra money gets set aside and used the following year to fund the exemption, with the Fayette County Board of Education deciding the exact per-homeowner amount. If collections do not grow enough, the exemption would be set at zero for that year. The exemption would not apply to state, county, municipal, or independent school district taxes, only Fayette County school district taxes. Because it affects local taxing power, Georgia's constitution requires the change go before Fayette County school district voters in a November 2026 referendum, and it needs a two-thirds vote in both legislative chambers. If approved, it starts January 1, 2027; if rejected or the election isn't held, the tax provision is automatically repealed a year after the election date.

• Creates a homestead exemption from Fayette County school district property taxes whose dollar value floats each year instead of staying fixed.
• Ties the exemption's size to how much school tax collections in a given year exceed collections from the 2025 base year, with the Board of Education setting the exact amount.
• Sets the exemption to zero for any year in which school tax collections do not grow enough compared to the 2025 base year.
• Requires homeowners to apply once with the Fayette County tax commissioner, after which the exemption renews automatically each year.
• Requires a November 2026 referendum of Fayette County school district voters before the tax change can take effect, with automatic repeal if voters reject it or no election occurs.

Homeowners in the Fayette County school district who claim a homestead exemption, the Fayette County tax commissioner's office, the Fayette County Board of Education, and the county election superintendent, who must organize and certify the November 2026 referendum.

Eligible Fayette County homeowners could see part of their school district property tax bill reduced, but only in years when total school tax collections grow substantially above 2025 levels; in slower growth years the exemption could be worth nothing, making the tax break unpredictable year to year.

• Section 1 defines key terms including 'ad valorem taxes for educational purposes,' the 2025 'base year,' and 'homestead,' and grants the exemption starting January 1, 2027.
• Section 1(c) sets the formula: excess tax collections above 100 percent of the 2025 base year amount are segregated and used to fund the next year's exemption, capped at the segregated amount.
• Section 1(d) and (e) require a one-time application with the Fayette County tax commissioner, after which the exemption renews automatically unless the homeowner becomes ineligible.
• Section 1(f) excludes state, county, municipal, and independent school district taxes from the exemption, limiting it to Fayette County school district taxes only.
• Section 2 requires a two-thirds majority vote in both the House and Senate for the Act to become law, per Georgia's constitution.
• Section 3 requires a Fayette County school district referendum on the Tuesday after the first Monday in November 2026, with automatic repeal one year later if voters reject it or the election isn't held.
• Section 4 makes the Act effective upon the Governor's approval, except for the referendum-dependent tax provisions in Section 1.

1. 2026-05-12Effective Date 2026-05-12
2. 2026-05-12Act 686
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
• Fayette County schools
• local referendum
• school district funding