---
title: HB 1602. Gainesville, City of; school district ad valorem tax; provide homestead exemption
collection: bills
id: 2025-2026/hb1602
cite_as: HB 1602, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1602
md_url: https://georgiacommons.org/bills/2025-2026/hb1602.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1602/text
source_url: https://www.legis.ga.gov/legislation/74382
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/hb1601.md
next: https://georgiacommons.org/bills/2025-2026/hb1603.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 898
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1602.md?full=1
bill_number: HB 1602
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/HB1602/2025
upstream_id: 2137350
summaries_model: claude-sonnet-5
topic_tags:
  - property taxes
  - homestead exemption
  - Gainesville schools
  - Hall County
  - school funding
---

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

## Text

House Bill 1602 (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 independent school district ad
valorem taxes for educational purposes in the amount of $10,000.00 of the assessed value of
the homestead for residents of that school district; 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 educational purposes" means all ad valorem taxes for
educational purposes levied by, for, or on behalf of the City of Gainesville independent
school district, including, but not limited to, any ad valorem taxes to pay interest on and
to retire independent school district 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 independent school district is granted an
exemption on such person's homestead from City of Gainesville independent school district
ad valorem taxes for educational 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 the 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, municipal ad valorem
taxes for municipal purposes, or county 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 independent school district ad valorem taxes for educational 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 independent school district for approval or rejection. The municipal
election superintendent shall conduct that election on 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 independent school district ad valorem taxes for educational
( ) NO purposes in the amount of $10,000.00 of the assessed value of the
homestead for residents of that school district?"
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 365th calendar day following the election date provided for
in this section. 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 independent school district 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 1602 would let voters in the City of Gainesville school district decide whether to create a $10,000 homestead exemption on school property taxes, starting in 2027 if approved.

### Plain-language summary

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.

### What it does

- 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.

### Who it affects

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.

### Why it matters

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.

### Key provisions

- 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.

## 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/74382

> The history, votes, and amendments (898 characters) are at https://georgiacommons.org/bills/2025-2026/hb1602.md?full=1