HB 745: Loganville, City of; ad valorem tax; provide homestead exemption

This bill applies only to homeowners inside the City of Loganville in Walton County. It creates a homestead exemption that limits growth in the taxable (assessed) value of a primary residence for city tax purposes. Instead of paying city taxes on the full current assessed value, a homeowner's taxable value would be frozen at a 'base year' value and then allowed to rise each year only by the prior year's inflation rate plus a small margin, unless the property changes substantially (like an addition). The exemption does not apply to state, county, or school taxes, only City of Loganville taxes for municipal purposes, and not to taxes used to pay off city bonds. Homeowners must apply once and it renews automatically, and it transfers to a surviving spouse who keeps living there. Because it affects property taxes, the Georgia Constitution requires a two-thirds vote in both legislative chambers and local voter approval; if voters reject it in the November 2025 election, the law is automatically repealed. If approved, it takes effect January 1, 2026.

• Creates a homestead exemption capping the taxable value growth of a primary home for City of Loganville municipal ad valorem (property) taxes.
• Bases the exemption on a 'base year assessed value' that increases each year only by an inflation-linked formula, not the full market value increase.
• Requires homeowners to apply once, after which the exemption renews automatically each year as long as they keep occupying the home.
• Excludes the exemption from applying to state, county, or school district property taxes, and from bonded debt tax levies.
• Requires a two-thirds vote in the General Assembly and a local voter referendum in November 2025 before the exemption can take effect.
• Automatically repeals the entire Act if voters reject it or if the election is not properly held, 365 days after the election date.

Homeowners in the City of Loganville who claim their property as a homestead, the Loganville city government which administers the exemption and loses some tax revenue growth, Walton County election officials who must run the referendum, and surviving spouses of exemption holders who can keep the benefit.

If approved by voters, eligible Loganville homeowners would see their city property tax bills grow more slowly, since taxable value increases would be capped by an inflation formula rather than rising with full market value increases, while other taxing bodies like the county and schools would be unaffected.

• Section 1 defines key terms including 'base year assessed value,' 'adjusted base year assessed value,' and 'inflation rate,' and sets 2024 as the base year for exemptions first granted in 2026.
• Section 1(b) grants the exemption equal to the difference between current assessed value and the adjusted base year assessed value, limiting annual increases to inflation plus 25 basis points.
• Section 1(c) requires an application but automatically carries over the exemption for anyone who had it in 2025 and remains eligible in 2026.
• Section 1(e) states the exemption applies only to City of Loganville municipal taxes, not state, county, or school taxes, and cannot be combined with another base-year exemption for the same city taxes.
• Section 2 requires a two-thirds majority vote in both the Georgia House and Senate under the state constitution's tax provisions.
• Section 3 calls for a November 2025 referendum in Loganville, with automatic repeal of the whole Act 365 days after the election if voters reject it or no valid election occurs.
• Section 4 sets the effective date as January 1, 2026 if approved, contingent on the referendum outcome.

1. 2025-05-09Effective Date
2. 2025-05-09Act 98
3. 2025-05-09House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-28Senate Passed/Adopted (Senate)
6. 2025-03-28Senate Committee Favorably Reported (Senate)
7. 2025-03-25Senate Read and Referred (Senate)
8. 2025-03-21House Passed/Adopted By Substitute (House)

• Reynaldo "Rey" Martinez (R, HD-111)Primary sponsor
• Bruce Williamson (R, HD-112)
• 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 28, 2025

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

   LOCAL CONSENT CALENDAR: Senate Vote #313

• property taxes
• homestead exemption
• Loganville
• local referendum
• Walton County