HB 1602: Gainesville, City of; school district ad valorem tax; provide homestead exemption

This bill sets up a new property tax break for homeowners in the City of Gainesville independent school district. It would exempt $10,000 of a home's assessed value from the school district's property taxes used for education, including taxes that pay off school bonds. Homeowners would need to apply once through the City of Gainesville's governing authority, and the exemption would then renew automatically each year as long as they still live there. The exemption would not affect state, county, or municipal taxes, only school district taxes, and it stacks on top of any other homestead exemptions already in place. Because it involves local tax law, the bill first needs a two-thirds vote in the General Assembly, then must be approved by voters in a November 2026 referendum. If voters say yes, the exemption starts January 1, 2027. If they reject it or no election is held, the whole Act repeals itself a year after the election date.

• Creates a $10,000 homestead exemption from City of Gainesville independent school district property taxes for educational purposes, including school bond debt.
• Requires homeowners to file a one-time application with the City of Gainesville's governing authority to qualify, after which the exemption renews automatically each year.
• Requires homeowners to notify the city if they become ineligible for the exemption.
• Limits the exemption so it does not apply to state, county, or municipal taxes, only the school district's educational property taxes.
• Requires a public referendum in November 2026 before the exemption can take effect, with automatic repeal of the whole Act if voters reject it or no election occurs.

Homeowners who live in the City of Gainesville independent school district and claim a homestead exemption, the City of Gainesville's governing authority which processes applications, and the school district, which would collect less in property tax revenue if the exemption passes.

If voters approve it, qualifying homeowners in the Gainesville school district would see $10,000 of their home's value removed from school tax calculations starting in 2027, lowering their school tax bills, while the district's other tax bases (state, county, municipal) stay unaffected.

• Section 1 defines the exemption and sets it at $10,000 of assessed home value, applying only to City of Gainesville independent school district educational taxes.
• Section 1(c)-(d) requires a one-time application to the City of Gainesville's governing authority, with automatic annual renewal and a duty to report ineligibility.
• Section 1(e) clarifies the exemption does not apply to state, county, or municipal taxes and stacks on top of other existing homestead exemptions.
• Section 1(f) sets the exemption to apply to taxable years starting on or after January 1, 2027.
• Section 2 requires a two-thirds majority vote in both legislative chambers for the Act to become law, per the Georgia Constitution.
• Section 3 calls for a November 2026 referendum in the City of Gainesville school district, with automatic repeal of the Act 365 days after the election if voters reject it or no election is held.
• Section 4 sets the Act's 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 695
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 schools
• Hall County
• school funding