---
title: HB 1601. Gainesville, City of; ad valorem tax for municipal purposes; provide homestead exemption
collection: bills
id: 2025-2026/hb1601
cite_as: HB 1601, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1601
md_url: https://georgiacommons.org/bills/2025-2026/hb1601.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1601/text
source_url: https://www.legis.ga.gov/legislation/74379
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.
up: https://georgiacommons.org/bills/2025-2026.md
previous: https://georgiacommons.org/bills/2025-2026/hb1600.md
next: https://georgiacommons.org/bills/2025-2026/hb1602.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 898
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1601.md?full=1
bill_number: HB 1601
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:
  - Matt Dubnik
  - Lee Hawkins
  - Brent Cox
  - Derrick McCollum
text_version: Enrolled
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1601/2025
upstream_id: 2137343
summaries_model: claude-sonnet-5
topic_tags:
  - property taxes
  - homestead exemption
  - Gainesville
  - local referendum
  - Hall County
---

# HB 1601. Gainesville, City of; ad valorem tax for municipal purposes; provide homestead exemption

## Text

House Bill 1601 (AS PASSED HOUSE AND SENATE)
By: Representatives Dubnik of the 29th, Hawkins of the 27th, Cox of the 28th, and McCollum
of the 30th
A BILL TO BE ENTITLED
AN ACT
To provide a homestead exemption from City of Gainesville ad valorem taxes for municipal
purposes in the amount of $10,000.00 of the assessed value of the homestead for residents
of that city; 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 Gainesville, including, but not limited
to, any ad valorem taxes to pay interest on and to retire municipal bonded indebtedness.
(2) "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 Gainesville is granted an exemption on such person's
homestead from City of Gainesville ad valorem taxes for municipal purposes in the amount
of $10,000.00 of the assessed value of such homestead. The value of that property in excess
of such exempted amount shall remain subject to taxation.
(c) 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 Gainesville, or the designee thereof, giving such information relative to
receiving such exemption as will enable the governing authority of the City of Gainesville,
or the designee thereof, to make a determination regarding the initial and continuing
eligibility of such person for such exemption. The governing authority of the City of
Gainesville, or the designee thereof, shall provide application forms for this purpose.
(d) 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 (c) 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 Gainesville, or the designee thereof,
in the event that such person for any reason becomes ineligible for such exemption.
(e) 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 Gainesville ad valorem taxes for
municipal purposes.
(f) 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 Gainesville 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 Gainesville 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 Hall
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 Gainesville ad valorem taxes for municipal purposes in the amount of
( ) NO $10,000.00 of the assessed value of the homestead for residents of that
city?"
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 Gainesville. 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 Gainesville 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.

House Bill 1601 would let City of Gainesville homeowners exempt $10,000 of their home's assessed value from city property taxes, pending voter approval in a November 2026 referendum.

### Plain-language summary

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.

### What it does

- 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.

### Who it affects

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.

### Why it matters

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.

### Key provisions

- 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.

## Status

- Status: Passed (2026-05-12)
- Last action: Effective Date 2026-05-12 (2026-05-12)
- Sponsors: Matt Dubnik, Lee Hawkins, Brent Cox, Derrick McCollum
- Official page: https://www.legis.ga.gov/legislation/74379

> The history, votes, and amendments (898 characters) are at https://georgiacommons.org/bills/2025-2026/hb1601.md?full=1