HB 746: Monroe, City of; ad valorem tax; provide homestead exemption

This bill sets up a homestead exemption from City of Monroe property taxes (ad valorem taxes) for municipal purposes only, not county, school, or state taxes. The exemption limits taxable value growth by exempting the difference between a home's current assessed value and an adjusted base year value, which grows each year based on an inflation rate plus a small buffer set by the state revenue commissioner. Homeowners must apply once, and the exemption then renews automatically as long as they keep living in the home; it does not transfer to a new owner when the property is sold, except for a surviving spouse who continues to occupy the home. People who got a 2025 homestead exemption and still qualify are automatically enrolled for 2026 without reapplying. Because it involves property tax exemptions, the bill needed a two-thirds vote in both legislative chambers and must be approved by City of Monroe voters in a November 2025 referendum before taking effect January 1, 2026. If voters reject it or no election is held, the exemption provisions are automatically repealed.

• Creates a homestead exemption from City of Monroe municipal property taxes equal to the growth in a home's assessed value above an adjusted base year value.
• Sets the adjusted base year value to grow annually by an inflation rate (plus 25 basis points) determined by the state revenue commissioner, limiting taxable value increases.
• Requires an initial application for the exemption but automatically renews it each year as long as the owner keeps living in the home as a homestead.
• Allows a surviving spouse to keep receiving the exemption as long as they continue occupying the home as their residence.
• Prevents the exemption from stacking with any other base year value homestead exemption for City of Monroe, applying whichever is more beneficial to the taxpayer.
• Requires City of Monroe voters to approve the exemption in a November 2025 referendum, with automatic repeal if the vote fails or the election is not held.

City of Monroe homeowners who qualify for a homestead exemption, the Monroe city government and its tax officials who administer the exemption, the Walton County election superintendent who must run the referendum, and surviving spouses of exemption recipients who continue living in the home.

If approved by voters, eligible Monroe homeowners would see their city property tax bills grow more slowly, since taxable value increases would be capped near the inflation rate rather than tracking full market value increases. The change applies only to city taxes, not county, school, or state property taxes.

• Section 1 defines key terms including 'adjusted base year assessed value,' 'base year assessed value,' and 'inflation rate,' which together determine how much taxable value growth is exempted each year.
• Section 1(b) grants the exemption equal to the difference between current assessed value and the adjusted base year value, and states it does not transfer to new owners except as specified.
• Section 1(c) requires an application but automatically enrolls people who had the exemption in 2025 and remain eligible in 2026, without requiring a new application.
• Section 1(e) clarifies the exemption applies only to City of Monroe municipal taxes, not state, county, or school taxes, and cannot be combined with another base year value exemption for the city.
• Section 1(g) makes the exemption apply to taxable years beginning on or after January 1, 2026.
• Section 2 requires a two-thirds majority 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 the City of Monroe, with automatic repeal 365 days after the election if voters reject it or no election occurs.

1. 2025-05-09Effective Date
2. 2025-05-09Act 99
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)

• 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 28, 2025

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

   LOCAL CONSENT CALENDAR: Senate Vote #313

• property taxes
• homestead exemption
• City of Monroe
• Walton County
• local referendum