HB 850: Augusta-Richmond County; ad valorem tax; provide homestead exemption

Right now, Augusta-Richmond County homeowners can see their property's assessed value, and therefore their consolidated government property tax bill, rise each year as property values increase. This bill would create a 'floating' homestead exemption that limits how much of that increase counts toward taxes. Each year, the taxable value could grow by no more than 3.2 percent above the prior adjusted base value, plus the value of any real additions like a new room or garage, with the exemption equal to whatever assessed value exceeds that adjusted base. The exemption would apply only to Augusta-Richmond County's consolidated government taxes, not to state, school, or municipal taxes. It would not transfer to a new owner when the home is sold, but an unremarried surviving spouse could keep it. Because this changes property tax rules, the Georgia Constitution requires the bill to be approved by two-thirds of both legislative chambers and then by Augusta-Richmond County voters in a November 2025 referendum before it can take effect on January 1, 2026.

• Creates a new homestead exemption for Augusta-Richmond County consolidated government ad valorem (property) taxes based on the difference between current assessed value and an adjusted base year value.
• Limits annual increases in the taxable base to 3.2 percent per year, plus the value of any substantial property additions or improvements.
• Requires homeowners to apply through the Augusta-Richmond County tax commissioner, but automatically carries over the exemption for people already approved for a 2025 homestead exemption on the same property.
• Excludes state, school district, and municipal property taxes from the exemption, limiting it strictly to consolidated government taxes.
• Requires that if the exemption conflicts with another base year value exemption already in place, the tax commissioner must apply whichever is more beneficial to the taxpayer.
• Requires a countywide referendum in November 2025; if voters reject it or no election is held, the bill automatically repeals itself 365 days after the election date.

Homeowners in Augusta-Richmond County who claim a homestead exemption, the Augusta-Richmond County tax commissioner's office, which must process applications, and the county's election superintendent, who must organize the November 2025 referendum on the measure.

If approved by voters, eligible homeowners in Augusta-Richmond County would see slower growth in the taxable value used for consolidated government property taxes, potentially lowering or stabilizing that portion of their tax bills even as home values rise, though school, state, and municipal taxes would be unaffected.

• Section 1 defines key terms including 'adjusted base year assessed value,' capping annual increases at 3.2 percent plus the value of substantial property changes like additions or removals.
• Section 1(c) requires an application to the tax commissioner but automatically grants the exemption to anyone who had a 2025 homestead exemption and remains eligible in 2026, without reapplying.
• Section 1(e) clarifies the exemption applies only to Augusta-Richmond County consolidated government taxes, not state, school, or municipal taxes, and does not stack with other base year value exemptions; the more beneficial one applies.
• Section 1(f) sets the exemption to apply to taxable years beginning on or after January 1, 2026.
• Section 2 requires a two-thirds majority vote in both the Georgia House and Senate for the bill to become law, per the state constitution.
• Section 3 calls for a countywide referendum on the Tuesday after the first Monday in November 2025, with automatic repeal 365 days later if the measure fails or no election occurs.
• Section 4 sets the Act's general effective date as upon the Governor's approval, except for the referendum-dependent Section 1.

1. 2025-05-09Effective Date
2. 2025-05-09Act 101
3. 2025-05-09House Date Signed by Governor (House)
4. 2025-04-10House Sent to Governor (House)
5. 2025-04-02Senate Passed/Adopted (Senate)
6. 2025-04-02Senate Committee Favorably Reported (Senate)
7. 2025-03-31Senate Read and Referred (Senate)
8. 2025-03-31House Passed/Adopted (House)

• Mark Newton (R, HD-127)Primary sponsor
• Brian Prince (D, HD-132)
• Karlton Howard (D, HD-129)
• Lynn Heffner (D, HD-130)
• L.C. Myles (D, HD-126)

1. PassedHouse voteMarch 31, 2025

   165 yea, 0 nay (10 not voting, 5 excused)

   Local Calendar Without HBs 851 & 852: House Vote #342

2. PassedSenate voteApril 2, 2025

   55 yea, 1 nay

   SUPPLEMENTAL LOCAL CONSENT CALENDAR: Senate Vote #400

• property taxes
• homestead exemption
• Augusta-Richmond County
• local referendum
• local government taxes