HB 744: Walnut Grove, City of; ad valorem tax; provide homestead exemption

This bill creates a new property tax break, called a floating homestead exemption, for people who own and live in a home within the City of Walnut Grove. Instead of a fixed dollar exemption, it works by locking in a base value for a home and limiting how much the taxable value can rise each year, tied to an inflation rate set by the state revenue commissioner plus 25 basis points. The exemption only applies to city taxes for municipal purposes, not to school, county, or state taxes, and not to taxes used to pay off city bonds. Homeowners must apply once, and the exemption then renews automatically as long as they keep living in the home; a surviving spouse can keep it too. The exemption generally does not transfer to a new owner when a home is sold. Because it changes property tax rules, the bill needed a two-thirds vote in the General Assembly and must be approved by Walnut Grove voters in a November 2025 referendum before it can take effect for the 2026 tax year.

• Creates a floating homestead exemption for Walnut Grove homeowners that limits annual increases in the taxable value used for city property taxes.
• Ties the allowed yearly increase in taxable value to an inflation index set by the state revenue commissioner, plus 25 basis points.
• Limits the exemption to city ad valorem taxes for municipal purposes only, excluding school, county, state taxes, and city bond debt payments.
• Automatically renews the exemption each year without new applications, as long as the homeowner keeps living in the home, and extends it to a surviving spouse.
• Requires the exemption to be approved by Walnut Grove voters in a November 2025 referendum before taking effect on January 1, 2026.
• Automatically repeals the entire Act if voters reject it or if the election is not held as required.

Homeowners in the City of Walnut Grove who claim the property as their primary residence (homestead), the Walton County tax and election officials who administer the exemption and referendum, and city government, which will collect less in municipal property tax revenue from participating homeowners.

If approved by voters, eligible Walnut Grove homeowners could see their city property tax bills grow more slowly even if their home's market value rises quickly, because the taxable value used for city taxes would be capped by an inflation-based formula rather than tracking full market value increases.

• Section 1 defines key terms including 'base year assessed value,' 'adjusted base year assessed value,' and 'substantial property change' used to calculate the exemption.
• Section 1(b) grants each Walnut Grove homestead owner an exemption equal to the difference between the current year's assessed value and the adjusted base year assessed value.
• Section 1(c) requires an application to claim the exemption but automatically carries over the exemption for people who already had a 2025 homestead exemption and remain eligible in 2026.
• Section 1(e) states the exemption applies only to city taxes, not state, county, or school taxes, and generally cannot be combined with another base year value homestead exemption for Walnut Grove.
• Section 1(f) directs the state revenue commissioner to set the annual inflation rate used to calculate allowed increases in assessed value.
• Section 1(g) makes the exemption apply to taxable years starting on or after January 1, 2026.
• Section 2 requires a two-thirds vote in both the House and Senate for the Act to become law, per the Georgia Constitution.
• Section 3 requires a November 2025 referendum in Walnut Grove; if voters reject it or the election isn't held, the Act is automatically repealed 365 days after the election date.

1. 2025-05-09Effective Date
2. 2025-05-09Act 97
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)

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

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
• Walnut Grove
• local referendum
• ad valorem tax