HB 539: Gwinnett County; school district ad valorem tax; increase homestead exemption

Since 1988, Gwinnett County school district law has given homeowners a $4,000 exemption from county school ad valorem (property) taxes on their primary residence, though not on taxes used to pay off bonded debt. This bill would raise that exemption to $10,000 of the home's assessed value. The increase would not take effect automatically. Because it changes a local tax exemption, the bill first needed a two-thirds vote in both the House and Senate, and it must also be approved by Gwinnett County school district voters in a referendum held during the 2026 general primary. If voters approve, the higher exemption starts for the tax year beginning January 1, 2027. If voters reject it, or if the election is not held as required, the whole Act is automatically repealed 365 days after the election date.

• Raises the Gwinnett County school district homestead exemption on property taxes from $4,000.00 to $10,000.00 of a home's assessed value.
• Requires the increase to be approved by Gwinnett County school district voters in a referendum held at the 2026 general primary.
• Sets the exemption's effective date as January 1, 2027, but only if voters approve it.
• Automatically repeals the entire Act 365 days after the election if voters reject it or if the election is not properly conducted.
• Allows any Gwinnett County school district voter to seek a court order (writ of mandamus) forcing the election superintendent to hold the vote if they fail to do so.

Homeowners who live in and occupy their homes within the Gwinnett County school district, the Gwinnett County election superintendent who must run the referendum, and the Gwinnett County school district, which relies on the property tax revenue affected by the exemption.

If approved by voters, eligible Gwinnett County homeowners would see $6,000 more of their home's assessed value shielded from school district property taxes starting in 2027, lowering their school tax bills, while the school district would collect less in property tax revenue from those homes.

• Section 1 rewrites the 1988 law's Section 2 to raise the homestead exemption from $4,000.00 to $10,000.00 of assessed value, starting with the tax year beginning January 1, 2027.
• Section 2 requires the Act to receive a two-thirds majority vote in both the House and Senate to comply with the Georgia Constitution's rules on local tax laws.
• Section 3 requires a referendum at the 2026 general primary, specifies the ballot language, and states the exemption takes effect only if a majority approve it.
• Section 3 also provides that if the referendum fails or is not held, the Act is automatically repealed 365 days after the election date.
• Section 4 makes the rest of the Act effective upon the Governor's signature or upon becoming law without signature.

1. 2025-05-13Effective Date
2. 2025-05-13Act 201
3. 2025-05-13House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-21Senate Passed/Adopted (Senate)
6. 2025-03-21Senate Committee Favorably Reported (Senate)
7. 2025-03-06Senate Read and Referred (Senate)
8. 2025-03-04House Passed/Adopted (House)

• Matt Reeves (R, HD-99)Primary sponsor
• Chuck Efstration (R, HD-104)
• Jasmine Clark (D, HD-108)
• Segun Adeyina (D, HD-110)
• Gabe Okoye (D, HD-102)
• Dewey McClain (D, HD-109)

1. PassedHouse voteMarch 4, 2025

   172 yea, 0 nay (6 not voting, 2 excused)

   Local Calendar: House Vote #148

2. PassedSenate voteMarch 21, 2025

   53 yea, 0 nay (2 not voting, 1 excused)

   LOCAL CONSENT CALENDAR: Senate Vote #265

• property taxes
• homestead exemption
• Gwinnett County
• school district funding
• local referendum