HB 260: Ad valorem tax; increase amount of a state-wide homestead exemption from certain ad valorem taxes

Under current Georgia law, homeowners who occupy their home as a primary residence get a state-wide exemption on the first $2,000 of the home's value when it comes to property taxes for state, county, and school purposes (this does not apply to municipal taxes or bonded debt payments). This bill would raise that exempted amount to $5,000, meaning less of a homeowner's property value would be taxed. Because the bill changes a constitutional tax exemption, it needs a two-thirds vote in both the House and Senate, and then must be approved by Georgia voters in a statewide referendum no later than November 2026. If voters approve it, the higher exemption takes effect January 1, 2027. If voters reject it or the election isn't held, the bill is automatically repealed and the $2,000 exemption stays in place.

• Raises the state-wide homestead property tax exemption in O.C.G.A. § 48-5-44 from $2,000 to $5,000 of a home's assessed value.
• Requires a two-thirds majority vote in both the Georgia House and Senate before the change can take effect, per constitutional rules.
• Sends the exemption increase to Georgia voters in a statewide referendum to be held no later than November 2026.
• Sets January 1, 2027 as the effective date for the higher exemption if voters approve it.
• Automatically repeals the entire Act if voters reject it or if the referendum election is not held as required.

Georgia homeowners who occupy their property as a primary residence and currently claim the state-wide homestead exemption. It also involves county election officials and the Secretary of State, who must organize and certify the statewide referendum, and county tax offices that administer the exemption.

If approved, homeowners statewide would see a larger share of their home's value shielded from property taxes for state, county, and school purposes, modestly lowering some tax bills. The change depends entirely on a legislative supermajority and a statewide vote before it can take effect.

• Section 1 rewrites O.C.G.A. § 48-5-44 to raise the homestead exemption cap from $2,000 to $5,000 of a home's value, exempted from state, county, and school property taxes (not municipal taxes or bond debt payments).
• Section 2 requires the Act to pass with a two-thirds majority in both the Senate and House to satisfy the Georgia Constitution's rules for tax exemption changes.
• Section 3 directs the Secretary of State to hold a statewide referendum no later than the Tuesday after the first Monday in November 2026, with a specified ballot question, and sets the exemption's effective date at January 1, 2027 if approved by a majority of voters.
• Section 3 also provides that if voters reject the measure or the election is not held, the Act is automatically repealed the following January 1.
• Section 4 makes the rest of the Act effective upon the Governor's signature or becoming law without signature, except for the referendum-dependent Section 1.
• Section 5 repeals any conflicting laws.

1. 2025-04-04House Withdrawn, Recommitted (House)
2. 2025-03-06House Committee Favorably Reported (House)
3. 2025-02-06House Second Readers (House)
4. 2025-02-05House First Readers (House)
5. 2025-02-04House Hopper (House)

• Matt Reeves (R, HD-99)Primary sponsor
• Shaw Blackmon (R, HD-146)
• Beth Camp (R, HD-135)
• Sandy Donatucci (R, HD-105)
• Deborah Silcox (R, HD-53)
• Clint Crowe (R, HD-118)

• property taxes
• homestead exemption
• ad valorem tax
• statewide referendum
• Georgia Constitution