HB 252: Newnan, City of; ad valorem tax; provide homestead exemption

Right now, when a home's assessed value rises in the City of Newnan, the homeowner's city property tax bill can rise with it. This bill would let Newnan homeowners freeze the taxable value of their primary residence (their 'homestead') at its 'base year' level for city tax purposes, so future increases in assessed value would not be taxed by the city as long as they keep living there. The exemption would not apply to new improvements, added land, state taxes, county taxes, or school taxes. Homeowners would have to apply once with the city to get the exemption, after which it renews automatically each year unless they become ineligible. Because it changes how property is taxed, the bill needs a two-thirds vote in the General Assembly and must also be approved by Newnan voters in a November 2025 referendum. If approved, it takes effect January 1, 2026; if rejected or no election is held, the whole Act is automatically repealed about a year later.

• Creates a homestead exemption that freezes a Newnan homeowner's city property tax value at the 'base year' assessed value, exempting future increases from city taxes.
• Excludes new home improvements or added land from the exemption, and requires the base value to be adjusted if property is removed from the homestead.
• Requires homeowners to file a one-time application with the city to claim the exemption, after which it renews automatically each year.
• Excludes state, county, and school taxes from the exemption, applying it only to City of Newnan municipal ad valorem taxes.
• Requires the exemption to be approved by Newnan voters in a November 2025 referendum before it can take effect, with automatic repeal if voters reject it or no election occurs.
• Sets an effective date of January 1, 2026 for the exemption if approved by voters.

Homeowners in the City of Newnan who claim a homestead exemption on their primary residence, the Newnan city government and its tax officials who administer the exemption, and Coweta County election officials who would run the November 2025 referendum.

If voters approve it, eligible Newnan homeowners would see their city property tax bills grow more slowly as their home values rise, since only the base year value would be taxed for city purposes. The city would need other revenue sources to offset any resulting reduction in tax collections.

• Section 1 defines 'base year' as the year before a homeowner first receives the exemption and applies the freeze to city ad valorem taxes only, not county, school, or state taxes.
• Section 1(b) exempts the amount by which current assessed value exceeds base year value, but not new improvements or added land.
• Section 1(c) and (d) require a one-time application to the city, with automatic annual renewal and a duty to report if the homeowner becomes ineligible.
• Section 1(e) clarifies the exemption stacks with other homestead exemptions unless another base-year exemption already applies, in which case only the larger benefit applies.
• Section 2 requires a two-thirds majority vote in both chambers of the General Assembly for the Act to become law, per the Georgia Constitution.
• Section 3 requires a Newnan voter referendum on November 4, 2025 (the Tuesday after the first Monday in November); the exemption takes effect January 1, 2026 only if approved.
• Section 3 also provides that if voters reject the measure or no election is held, the entire Act is automatically repealed 365 days after the election date.

1. 2025-05-09Effective Date
2. 2025-05-09Act 95
3. 2025-05-09House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-02-21Senate Passed/Adopted (Senate)
6. 2025-02-21Senate Committee Favorably Reported (Senate)
7. 2025-02-18Senate Read and Referred (Senate)
8. 2025-02-13House Passed/Adopted By Substitute (House)

• Lynn Smith (R, HD-70)Primary sponsor
• Josh Bonner (R, HD-73)

1. PassedHouse voteFebruary 13, 2025

   163 yea, 0 nay (11 not voting, 6 excused)

   Local Calendar: House Vote #32

2. PassedSenate voteFebruary 21, 2025

   46 yea, 0 nay (9 not voting, 1 excused)

   LOCAL CONSENT CALENDAR: Senate Vote #78

• property taxes
• homestead exemption
• Newnan
• local referendum
• Coweta County