HB 1601: Gainesville, 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) for people who live in the City of Gainesville. It would exclude $10,000 of a home's assessed value from the city's property taxes used for municipal purposes, meaning only the value above that amount would still be taxed. The exemption applies only to Gainesville's municipal taxes, not to state taxes, Hall County taxes, or school district taxes. Residents would need to apply once with the city to get the exemption, and it would then renew automatically each year as long as they keep living in the home as their primary residence. Because this changes property tax law, the Georgia Constitution requires voter approval: Gainesville must hold a referendum on November 3, 2026. If voters approve it, the exemption starts January 1, 2027. If voters reject it, or the election isn't held, the whole law is automatically repealed.

• Creates a $10,000 homestead exemption against City of Gainesville municipal property taxes for residents who own and occupy a home in the city.
• Requires homeowners to file a one-time application with the city government to claim the exemption, after which it renews automatically each year.
• Limits the exemption to city municipal taxes only, excluding state, county, and school district property taxes.
• Requires a citywide referendum in November 2026 before the exemption can take effect, with automatic repeal if voters reject it or the election doesn't happen.
• Sets the exemption's start date at January 1, 2027 if approved by voters.

Homeowners in the City of Gainesville who occupy their homes as a primary residence stand to benefit directly. The city government must set up an application process, and Hall County's election officials must organize and certify the November 2026 referendum.

If approved, eligible Gainesville homeowners would pay municipal property taxes on $10,000 less of their home's value starting in 2027, lowering their city tax bills. The change depends entirely on voters approving it in a local referendum, so nothing takes effect automatically.

• Section 1 defines the exemption, sets its amount at $10,000 of assessed value, and limits it to City of Gainesville municipal ad valorem taxes.
• Section 1(c) and (d) require an initial application to the city, with automatic annual renewal and a duty to report if the homeowner becomes ineligible.
• Section 1(e) clarifies the exemption does not apply to state, county, or school district taxes and stacks on top of any other existing homestead exemptions.
• Section 2 requires a two-thirds vote in both the House and Senate for the bill to become law, per the Georgia Constitution.
• Section 3 mandates a City of Gainesville referendum on November 3, 2026, and states the exemption takes effect January 1, 2027 only if voters approve it; otherwise the Act is automatically repealed.
• Section 4 sets the bill's own effective date as upon the Governor's approval, except for the referendum provisions in Section 3.

1. 2026-05-12Effective Date 2026-05-12
2. 2026-05-12Act 694
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)

• Matt Dubnik (R, HD-029)Primary sponsor
• Lee Hawkins (R, HD-027)
• Brent Cox (R, HD-028)
• Derrick McCollum (R, HD-030)

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
• Gainesville
• local referendum
• Hall County