HB 853: Tunnel Hill, City of; ad valorem tax for municipal purposes; provide new homestead exemption

This bill creates a new break on property taxes for a primary home (called a homestead exemption) for older residents of the City of Tunnel Hill in Whitfield County. Any resident who is 70 or older would get $325,000 exempted from the assessed value of their home when the city calculates municipal property taxes, though the exemption would not apply to state, county, or school taxes. A surviving spouse can keep the exemption if they continue living in the home. Residents must apply once with the city to claim the exemption, after which it renews automatically each year as long as they still live there. Because this changes property taxes, the Georgia Constitution requires the change to be approved by two-thirds of the House and Senate and then by local voters. The bill calls for a referendum during the November 2025 municipal election; if voters approve, the exemption starts for tax years beginning January 1, 2026. If voters reject it or no election is held, the whole Act is automatically repealed on January 1, 2026.

• Creates a $325,000 homestead exemption from City of Tunnel Hill municipal property taxes for residents 70 or older.
• Allows a surviving spouse of an exempted homeowner to keep the exemption as long as they keep living in the home.
• Requires residents to file a one-time application with the city, after which the exemption renews automatically each year.
• Limits the exemption to city taxes only, excluding state, county, and school property taxes, and makes it replace rather than add to other city homestead exemptions.
• Requires city voters to approve the change in a November 2025 referendum, with automatic repeal of the whole Act on January 1, 2026 if voters reject it or no election happens.

Residents of the City of Tunnel Hill who are 70 or older and own their homes, their surviving spouses, the city government that must administer applications and hold the referendum, and city taxpayers generally since a shrinking tax base can affect municipal revenue.

If approved by voters, eligible older homeowners in Tunnel Hill would see a large reduction in their city property tax bill, since $325,000 of their home's value would no longer be taxed for municipal purposes. The city's tax base for municipal services could shrink as a result.

• Section 1 defines the exemption, sets the $325,000 amount, and limits it to city ad valorem taxes for municipal purposes, excluding bonded debt taxes.
• Section 1(c) lets a surviving spouse keep the exemption while occupying the home as their residence and homestead.
• Section 1(d)-(e) requires a one-time application to the city with automatic annual renewal, and requires notifying the city if the person becomes ineligible.
• Section 1(f) makes clear the exemption replaces, rather than adds to, any other city homestead exemption, and does not apply to state, county, or school taxes.
• 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 referendum in the November 2025 municipal election, with the exemption taking effect January 1, 2026 if approved, or the Act being automatically repealed on January 1, 2026 if not.
• Section 4 sets the general effective date as approval by the Governor or becoming law without approval, except for the referendum timeline in Section 3.

1. 2025-05-14Effective Date
2. 2025-05-14Act 348
3. 2025-05-14House Date Signed by Governor (House)
4. 2025-04-08House 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)

• Kasey Carpenter (R, HD-4)Primary sponsor
• Jason Ridley (R, HD-6)
• Steve Tarvin (R, HD-2)

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
• senior citizens
• Tunnel Hill
• local referendum