HB 743: Social Circle, City of; ad valorem tax; provide homestead exemption

Currently, homeowners in the City of Social Circle pay municipal property taxes based on their home's full assessed value each year, which can rise quickly as property values increase. This bill would create a homestead exemption that limits how much a home's taxable value can grow annually for city tax purposes. Under the formula, the taxable value could only increase by roughly the local inflation rate (plus a small margin) each year, rather than jumping to the full market assessment, starting from a 2024 base year value for those who first qualify in 2026. The exemption applies only to City of Social Circle general operating taxes, not to state, county, school, or bond-related taxes. It does not transfer to a new owner when a home is sold, though a surviving spouse can keep it. The change must first be approved by two-thirds of the General Assembly and then by Social Circle voters in a November 2025 referendum; if approved, it takes effect January 1, 2026, and if rejected, the whole Act is automatically repealed a year later.

• Creates a homestead exemption for City of Social Circle municipal property taxes based on the difference between a home's current assessed value and an adjusted base year value.
• Limits annual increases in a home's taxable value for city tax purposes to roughly the inflation rate plus 25 basis points, plus the value of any substantial improvements.
• Automatically renews the exemption each year without reapplication once a homeowner qualifies, and lets a surviving spouse keep it while living in the home.
• Excludes the exemption from applying to state, county, and school district property taxes, and from taxes used to pay off municipal bonds.
• Requires the exemption to be approved both by a two thirds vote of the General Assembly and by Social Circle voters in a November 2025 referendum before it can take effect.

Homeowners in the City of Social Circle who claim the property as their primary residence, the Social Circle municipal government and its tax collection process, and Walton County election officials who must run the November 2025 referendum.

If approved by voters, eligible homeowners in Social Circle would see their city property tax bills grow more slowly even as their home's market value rises, since the taxable value used for city taxes would be capped near the inflation rate each year instead of tracking full market increases.

• Section 1 defines key terms like 'base year assessed value' (the 2024 value for those first qualifying in 2026) and 'adjusted base year assessed value,' which grows only by inflation plus 25 basis points annually.
• Section 1(b) grants the exemption equal to the difference between a home's current assessed value and its adjusted base year value, applying only to City of Social Circle municipal taxes.
• Section 1(c) and (d) require an initial application but automatically carry over the exemption yearly, with an exception letting 2025 exemption holders qualify automatically in 2026.
• Section 1(e) clarifies the exemption does not apply to state, county, or school taxes and cannot be combined with another base-year homestead exemption for the same city taxes; the more beneficial one applies.
• Section 2 requires a two-thirds vote of the General Assembly for the Act to become law, per the Georgia Constitution.
• Section 3 schedules a Social Circle voter referendum for November 2025, with automatic repeal of the entire Act 365 days later if voters reject it or no election is held.
• Section 4 sets the effective date as the date of the Governor's approval, except for the referendum provisions in Section 3.

1. 2025-05-09Effective Date
2. 2025-05-09Act 103
3. 2025-05-09House Date Signed by Governor (House)
4. 2025-04-10House Sent to Governor (House)
5. 2025-03-27Senate Passed/Adopted (Senate)
6. 2025-03-27Senate Committee Favorably Reported (Senate)
7. 2025-03-25Senate Read and Referred (Senate)
8. 2025-03-21House Passed/Adopted By Substitute (House)

• Tim Fleming (R, HD-114)Primary sponsor
• Bruce Williamson (R, HD-112)
• Reynaldo "Rey" Martinez (R, HD-111)

1. PassedHouse voteMarch 21, 2025

   158 yea, 0 nay (9 not voting, 13 excused)

   Local Calendar: House Vote #293

2. PassedSenate voteMarch 27, 2025

   52 yea, 0 nay (0 not voting, 4 excused)

   LOCAL CONSENT CALENDAR: Senate Vote #291

• property taxes
• homestead exemption
• Social Circle
• local referendum
• Walton County