HB 1583: Fayette County; ad valorem tax; floating proportional amount based upon any increased property tax collections; provide new exemption

Fayette County currently offers homestead exemptions from county property taxes to residents of certain ages under a 1996 law. This bill adds a new exemption available to all Fayette County residents, not just older homeowners, based on a formula tied to growth in total county property tax collections. Each year, the tax commissioner compares county property tax collections to the amount collected in 2025 (the base year). If collections grow by more than the full base year amount, the extra money is set aside and used the next year to fund an equal-dollar exemption for all homesteads. If collections do not grow that much, the exemption is set at zero for that year. The change requires two-thirds approval in both legislative chambers and a countywide referendum in November 2026. If approved, it takes effect January 1, 2027; if rejected or the election is not held, the whole Act repeals itself a year after the election date.

• Adds a new homestead exemption from Fayette County property taxes (ad valorem taxes) available to all county residents with a homestead, not just specified age groups.
• Ties the size of the exemption to how much county property tax collections in a given year exceed the amount collected in the 2025 base year.
• Requires the tax commissioner to segregate any excess collections above double the base year amount and use those funds to pay for the exemption the following year.
• Sets the exemption to zero dollars in any year where collections do not grow enough to trigger the formula.
• Requires a countywide referendum in November 2026 before the exemption can take effect, and automatically repeals the whole Act if voters reject it or no election is held.
• Requires two-thirds approval in both the Georgia House and Senate under the state constitution before the change can become law.

Homeowners in Fayette County who qualify for a homestead exemption, the Fayette County tax commissioner and county governing authority, who must calculate and administer the exemption, and Fayette County voters, who must approve the measure in a November 2026 referendum.

If approved, Fayette County homeowners could see a property tax exemption whose value rises only when county tax collections grow faster than 2025 levels, meaning the benefit fluctuates year to year and could be zero in years without significant collection growth.

• Section 1 adds subsection (a.1) to Section 4 of the 1996 Fayette County homestead exemption law, creating the new floating exemption for all resident homeowners starting January 1, 2027.
• Section 1(3)(A) requires the tax commissioner to calculate each year how much county tax collections exceed the 2025 base year amount.
• Section 1(3)(B) requires collections exceeding double the base year amount to be segregated and used to fund an equal per-property exemption the following year, with leftover funds going to the general fund.
• Section 1(3)(C) sets the exemption at zero dollars for a year if collections do not grow enough to exceed the base year threshold.
• Section 2 requires a two-thirds vote in both the House and Senate for the Act to become law, as required by the Georgia Constitution.
• Section 3 requires a Fayette County referendum on the Tuesday after the first Monday in November 2026, with the Act's tax provisions taking effect January 1, 2027 only if approved.
• Section 3 also provides that if voters reject the measure or the election is not held, the Act automatically repeals 365 days after the election date, and allows a court-ordered election if the superintendent fails to act.
• Section 4 sets the Act's general effective date as the date the Governor signs it, aside from the referendum provisions.

1. 2026-05-12Effective Date 2026-05-12
2. 2026-05-12Act 687
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
• Fayette County
• homestead exemption
• local referendum
• county government finance