House Bill 439 (AS PASSED HOUSE AND SENATE)
By: Representatives Yearta of the 152nd, Dickey of the 134th, Williams of the 148th, Anderson
of the 10th, Kelley of the 16th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Title 36 of the Official Code of Georgia Annotated, relating to local government
so as to authorize the establishment of local homeowner's incentive adjustment grant
programs; to provide definitions; to provide constitutional authorization; to provide for
referendums to establish and discontinue such programs; to provide for the appropriation of
funds to support such programs; to provide for the calculation, application, and limitations
on tax credits; to provide for rules and regulations; to provide for recoverability; to amend
Article 7 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to
miscellaneous local administrative provisions, so as to authorize the establishment of local
homeowner's incentive adjustment grant funds; to provide for an effective date; to provide
for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Title 36 of the Official Code of Georgia Annotated, relating to local government, is amended
by adding a new chapter to read as follows:
<ins>"CHAPTER 89A
36-89A-1.
As used in this chapter, the term:
(1) 'Applicable rollback' means a:
(A) Rollback of an ad valorem tax millage rate pursuant to subsection (a) of Code
Section 48-8-91 in a county or municipality that levies a local option sales tax;
(B) Rollback of an ad valorem tax millage rate pursuant to subparagraph (c)(2)(C) of
Code Section 48-8-104 in a county or municipality that levies a homestead option sales
tax;
(C) Reduction of an ad valorem tax millage rate pursuant to the development of a
service delivery strategy under Code Section 36-70-24; and
(D) Reduction of an ad valorem tax millage rate pursuant to paragraph (2) of
subsection (a) of Code Section 33-8-8.3 in a county that collects insurance premium
tax.
(2) 'County millage rate' means the net ad valorem tax millage rate, after deducting
applicable rollbacks, levied by a county for county purposes and applying to qualified
homesteads in the county, including any millage levied for those special districts reported
on the 2026 ad valorem tax digest certified to and received by the state revenue
commissioner on or before December 31, 2026, but not including any millage levied for
purposes of bonded indebtedness and not including any millage levied on behalf of a
county school district for educational purposes.
(3) 'Eligible assessed value' means a certain stated amount of the assessed value of each
qualified homestead in the state.
(4) 'Fiscal authority' means the individual authorized to collect ad valorem taxes for a
county or municipality which levies ad valorem taxes.
</ins>
<ins>(5) 'Local homeowner's incentive adjustment grant fund' means the fund established by
the participating local government pursuant to Code Section 48-5-381.1.
(6) 'Municipal millage rate' means the net ad valorem tax millage rate, after deducting
applicable rollbacks, levied by a municipality for municipal purposes and applying to
qualified homesteads in the municipality, but not including any millage levied for those
special tax districts reported on the 2026 City and Independent School Millage Rate
Certification certified to and received by the state revenue commissioner on or before
December 31, 2026, any millage levied for purposes of bonded indebtedness, or any
millage levied on behalf of an independent school district for educational purposes.
(7) 'Participating local government' means a county or municipality wherein the voters
have approved a local homeowner's incentive adjustment grant program pursuant to Code
Section 36-89A-2 and that has established a local homeowner's incentive adjustment
grant fund.
(8) 'Qualified homestead' means a homestead qualified for any exemption, state, county,
or school, authorized under Code Section 48-5-44.
36-89A-2.
(a) This chapter is enacted pursuant to Article VII, Section IIA, Paragraph I of the
Constitution to provide a mechanism for counties and municipalities to establish local
homeowner's incentive adjustment programs so as to reduce the tax burden upon qualified
homesteads within participating local governments.
(b) Any county or municipality that wishes to establish a local homeowner's incentive
adjustment program pursuant to this chapter shall first submit a referendum to the electors
of such jurisdiction with the question of whether or not such program shall be established.
The call for and conduct of any such election shall be in the manner authorized under Code
Section 21-2-540. All persons desiring to vote in favor of the local homeowner's incentive
adjustment program shall vote 'Yes' and all persons opposed to such program shall vote
</ins>
<ins>'No.' If more than one-half of the votes cast are in favor of the local homeowner's incentive
adjustment program, then such program shall go into effect for the next fiscal year for the
participating local government.
(c) When the electors of a jurisdiction approve a local homeowner's incentive adjustment
program, and a county or municipality becomes a participating local government, the local
homeowner's incentive adjustment program shall not be discontinued until the electors of
the participating local government approve the discontinuation of such program in a
referendum. The call for and conduct of any such election shall be in the manner
authorized under Code Section 21-2-540. All persons desiring to vote in favor of
discontinuing the local homeowner's incentive adjustment program shall vote 'Yes' and all
persons opposed to discontinuing such program shall vote 'No.' If more than one-half of
the votes cast are in favor of discontinuing the local homeowner's incentive adjustment
program, then such program shall be discontinued at the end of the next fiscal year. If
more than one-half of the votes cast are opposed to discontinuing the local homeowner's
incentive adjustment program, then such program shall continue to operate in a manner
consistent with this chapter.
36-89A-3.
(a) Subject to the limitations of subsection (b) of this Code section, in each fiscal year
beginning after a county or municipality becomes a participating local government, the
governing authority of such government shall appropriate to the local homeowner's
incentive adjustment grant fund for such government funds to provide homeowner's
incentive adjustment credits to qualifying homestead properties in the county or
municipality.
(b) For each fiscal year beginning after a county or municipality becomes a participating
local government, no funds shall be appropriated under subsection (a) of this Code section
unless the actual revenues collected by such government in the preceding fiscal year
</ins>
<ins>exceeded appropriations enumerated in the budget ordinance or resolution, as amended,
adopted by such government for such preceding fiscal year, and the amount of estimated
total revenues available for appropriation in the budget ordinance or resolution for the next
fiscal year are equal to or exceed such actual collections for the preceding fiscal year.
36-89A-4.
(a)(1) When funds are appropriated as provided in Code Section 36-89A-3, such grants
shall be allotted by the participating local government as follows:
(A) Immediately following the actual preparation of ad valorem property tax bills, the
county fiscal authority of a participating county shall calculate the total amount of tax
revenue which would be generated by applying the county millage rates to the eligible
assessed value of each qualified homestead in the county. The fiscal authority shall
then determine the amount of funds in the county's local homeowner's incentive
adjustment grant fund and calculate the amount of the adjustment credit that may be
provided from such fund to each qualified homestead in the county up to the taxpayer's
ad valorem property tax liability on the homestead. The total amount of actual
adjustment credit shall be applied as a tax credit given to each qualified homestead in
the county; or
(B) Immediately following the actual preparation of ad valorem property tax bills, the
fiscal authority of a participating municipality shall calculate the total amount of tax
revenue which would be generated by applying the municipal millage rate to the
eligible assessed value of each qualified homestead in the municipality. The fiscal
authority shall then determine the amount of funds in the municipality's local
homeowner's incentive adjustment grant fund and calculate the amount of the
adjustment credit that may be provided from such fund to each qualified homestead in
the municipality up to the taxpayer's ad valorem property tax liability on the homestead,
</ins>
<ins>whichever is lower. The total amount of actual adjustment credit shall be applied as a
tax credit given to each qualified homestead in the municipality.
(2) Credit amounts computed under paragraph (1) of this subsection shall be applied to
reduce the otherwise applicable tax liability on a dollar-for-dollar basis, but the credit
granted shall not in any case exceed the amount provided for in the Constitution or of the
otherwise applicable tax liability after the granting of all applicable homestead
exemptions, except for any homestead exemption under Article 2A of Chapter 8 of Title
48, the 'Homestead Option Sales and Use Tax Act,' as amended, and after the granting
of all applicable millage rollbacks.
(3) Credit amounts computed under paragraph (1) of this subsection shall not be
computed so as to result in the value of the credits to be granted exceeding the amount
of funds in the local homeowner's incentive adjustment grant fund of the participating
local government.
(b) The grant of funds by a county shall be conditioned on the county's fiscal authority
reducing each qualified homestead's otherwise applicable liability for county taxes for
county purposes by a credit amount calculated in subparagraph (a)(1)(A) of this Code
section.
(c) The grant of funds by a municipality shall be conditioned on the municipality's fiscal
authority reducing each qualified homestead's otherwise applicable liability for municipal
taxes by a credit amount calculated in subparagraph (a)(1)(B) of this Code section.
(d) Each fiscal authority shall show the credit amount on the tax bill.
36-89A-5.
The state revenue commissioner shall adopt rules and regulations for the administration of
this chapter, including specific instructions to participating local governments on
developing and preparing the forms necessary for the administration of a program pursuant
to this chapter.
</ins>
<ins>36-89A-6.
Any credit under this chapter which is erroneously or illegally granted shall be recoverable
by the political subdivision granting such credit in the same manner as any other delinquent
tax."
</ins> SECTION 2.
Article 7 of Chapter 5 of Title 48 of the Official Code of Georgia Annotated, relating to
miscellaneous local administrative provisions, is amended by adding a new Code section to
read as follows:
<ins>"48-5-381.1.
(a) Whenever the governing authority of any county or municipality determines that it is
impractical to expend the funds raised by taxation for the purposes for which the taxes were
levied and that it is in the best interest of the county or municipality and its citizens and
taxpayers for public work to be postponed until more advantageous conditions prevail, the
governing authority may order as much of the funds as it deems proper transferred to a
fund to be known as the 'local homeowner's incentive adjustment grant fund' of the county
or municipality. The local homeowner's incentive adjustment grant fund may be deposited
in the manner provided by law or may be invested in obligations of the United States.
(b) A county or municipal governing authority may transfer from time to time to its local
homeowner's incentive adjustment grant fund any accumulated overage in its general fund.
(c) The county or municipal local homeowner's incentive adjustment grant fund shall be
held until the governing authority determines that it is practical and advantageous to
undertake a local homeowner's incentive adjustment program pursuant to Chapter 89A of
Title 36. Upon the determination, the governing authority may order funds transferred
from the local homeowner's incentive adjustment grant fund to any of the several funds or
to the general fund of the county or municipality so as to off set any homeowner's incentive
adjustments approved by such governing authority.
</ins>
<ins>(d) The existence of a county or municipal local homeowner's incentive adjustment grant
fund shall not prevent tax levies from being made by the governing authority for the several
purposes authorized by law at such rates as are necessary for the current or anticipated
needs of the county or municipality to the same extent the governing authority could
lawfully levy if no local homeowner's incentive adjustment grant fund was in existence.
(e) When any county or municipal local homeowner's incentive adjustment grant fund is
established, it shall be the duty of the governing authority to expend the fund pursuant to
the provisions of Chapter 89A of Title 36. If such a program is not established or is
discontinued, the local homeowner's incentive adjustment grant fund shall be closed and
any remaining funds shall be deposited in the county or municipal general fund.
(f) The provisions of this Code section are in addition to and not in lieu of the
establishment of a reserve fund pursuant to Code Section 48-5-381."
</ins> SECTION 3.
This Act shall become effective on January 1, 2027.
SECTION 4.
All laws and parts of laws in conflict with this Act are repealed.