HB 854: Cohutta, City of; ad valorem tax for municipal purposes; increase homestead exemption

In 2023 the Georgia General Assembly created a special break on property taxes for a primary home (a homestead exemption) for City of Cohutta residents age 70 or older, shielding $100,000 of a home's assessed value from the city's municipal property taxes. This bill amends that 2023 law to raise the exempted amount to $325,000 of assessed value, meaning only the value above that amount would still be taxed by the city. Because the change affects local property tax exemptions, the Georgia Constitution requires it to pass both chambers by a two-thirds vote, and it must also be approved by Cohutta voters in a referendum. The bill directs the city's election superintendent to hold that vote during the November 2025 municipal general election. If voters approve, the higher exemption takes effect January 1, 2026. If they reject it or no election is held, the increase does not take effect and this Act is automatically repealed on January 1, 2026.

• Increases the City of Cohutta's homestead exemption for residents 70 or older from $100,000 to $325,000 of a home's assessed value for municipal property taxes.
• Requires the change to pass both chambers of the Georgia General Assembly by a two-thirds majority vote, as the state constitution requires for this type of local tax law.
• Requires the City of Cohutta to hold a voter referendum on the change during the November 2025 municipal election.
• Sets the new exemption to take effect January 1, 2026 only if voters approve it, and automatically repeals the Act on that date if they do not.
• Allows any Cohutta voter to seek a court order (a writ of mandamus) forcing the election superintendent to hold the required election if it is not conducted.

City of Cohutta residents age 70 or older who own homes there, since their property tax exemption amount would change; the Cohutta municipal election superintendent, who must organize the referendum; and Whitfield County's official newspaper, which must publish election notices.

If voters approve it, qualifying older homeowners in Cohutta would shield significantly more of their home's value from city property taxes, cutting their municipal tax bills starting in 2026. If voters reject the measure or the vote does not happen, the exemption stays at its current $100,000 level.

• Section 1 rewrites subsection (b) of the 2023 Cohutta homestead exemption law to raise the exempted amount from $100,000 to $325,000 of assessed value.
• 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's rules on local tax exemptions.
• Section 3 requires the Cohutta election superintendent to hold a referendum during the November 2025 municipal election, sets the exact ballot language, and says the higher exemption takes effect January 1, 2026 if approved.
• Section 3 also states that if voters reject the measure or no election is held, the Act is automatically repealed on January 1, 2026.
• Section 3 lets any Cohutta voter seek a court order compelling the election superintendent to hold the vote if it is not conducted as required.
• Section 4 sets the bill's general effective date as upon the Governor's approval or its becoming law without signature, apart from the referendum timeline in Section 3.

1. 2025-05-14Effective Date
2. 2025-05-14Act 349
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
• City of Cohutta
• local referendum
• senior citizens