HB 92: Revenue and taxation; postpone date by which local governing authorities can opt out of base year homestead exemption

In 2024 the Georgia General Assembly created a statewide base year homestead exemption that limits how much a home's taxable value can rise year to year, but let county, city, and school district governments opt out by March 1, 2025. HB 92 changes several details around that system. It lets local governments whose opt-out is set to expire keep it in place for 2027 and later by repeating the public notice process and filing a new resolution by March 1, 2027, and it sets specific windows for those governments to reverse their opt-out decision. It also requires property tax bills in opted-out areas to carry a notice explaining that the local government chose to opt out, through 2029. Beyond the homestead exemption, the bill tightens how counties and cities calculate the 'roll-back rate' used on tax notices, updates required content on assessment notices, creates a temporary local sales tax exemption for construction materials used in school capital projects funded by education sales taxes (through 2033), and revises rules for local sales tax caps and special district sales taxes for property tax relief. Most changes take effect when the Governor signs the bill, with Part I applying to tax years starting January 1, 2025.

• Lets local governments extend an existing opt-out of the base year homestead exemption past 2026 by repeating public hearings and filing a resolution with the Secretary of State by March 1, 2027.
• Sets specific deadlines for local governments to rescind an opt-out decision: April 30, 2025 for tax year 2025, and March 1 of each year from 2026 through 2029 for later years.
• Requires property tax bills in opted-out jurisdictions to include a bold notice telling homeowners the local government chose to opt out of the HB 581 (2024) tax relief, through 2029.
• Clarifies that a surviving spouse does not have to reapply for the homestead exemption after the original homeowner already qualified.
• Creates a temporary local sales tax exemption, repealed December 31, 2033, for construction materials used in school building projects funded by education sales taxes, but only for school systems that keep the base year homestead exemption in effect.
• Revises how counties and cities calculate and certify the 'estimated roll-back rate' shown on tax notices and requires that calculation at least 15 days before assessment notices go out.

Homeowners with the base year homestead exemption, county and city governing authorities and school boards deciding whether to opt out of that exemption, county tax assessors and tax commissioners who prepare assessment notices and tax bills, local school systems running capital construction projects, and special districts that levy local sales taxes for property tax relief.

Homeowners in areas that opted out would keep seeing a notice on their tax bill explaining why, and some opted-out local governments could extend or reverse that choice under new deadlines. School districts with the exemption in place could also save money on construction materials for building projects funded by education sales taxes.

• Section 1-3 lets a local government's opt-out remain effective for tax year 2027 and beyond only if it repeats the public hearing process and files a resolution with the Secretary of State by March 1, 2027.
• Section 1-3 sets rescission deadlines: April 30, 2025 for tax year 2025, and March 1 of the applicable year from 2026 through 2029 for later tax years.
• Section 1-2 requires a bold-print notice on property tax bills in opted-out jurisdictions naming the political subdivision and directing homeowners to call with concerns, ending after tax year 2029.
• Section 2-1 creates a local sales and use tax exemption for construction materials in school capital outlay projects, limited to school systems with the base year exemption in effect, with refunds handled by the Department of Revenue and no interest paid; this exemption repeals December 31, 2033.
• Section 1-5 and 1-6 add a new Code Section 48-5-306.2 requiring levying authorities to calculate and certify their estimated roll-back rate at least 15 days before assessment notices are mailed.
• Section 3-1 maintains the 2 percent cap on most local sales and use taxes while adjusting exceptions for transportation-related taxes.
• Section 4-1 makes the Act effective upon the Governor's signature, with Part I (the homestead exemption changes) applying to tax years beginning on or after January 1, 2025.

1. 2025-04-01Effective Date
2. 2025-04-01Act 5
3. 2025-04-01House Date Signed by Governor (House)
4. 2025-04-01House Sent to Governor (House)
5. 2025-03-27House Agreed Senate Amend or Sub (House)
6. 2025-03-25Senate Transmitted House (Senate)
7. 2025-03-25Senate Passed/Adopted By Substitute (Senate)
8. 2025-03-25Senate Third Read (Senate)

• Shaw Blackmon (R, HD-146)Primary sponsor
• Trey Kelley (R, HD-16)
• Noel Williams, Jr. (R, HD-148)
• Chris Erwin (R, HD-32)
• Dale Washburn (R, HD-144)
• Clint Crowe (R, HD-118)
• Chuck Hufstetler (R, SD-52)

1. PassedHouse voteFebruary 18, 2025

   173 yea, 1 nay (1 not voting, 5 excused)

   PASSAGE: House Vote #40

2. PassedSenate voteMarch 25, 2025

   31 yea, 22 nay (2 not voting, 1 excused)

   MOTION TO ENGROSS: HB 92, HB 290: Senate Vote #278

3. PassedSenate voteMarch 25, 2025

   52 yea, 2 nay (2 not voting, 0 excused)

   PASSAGE BY SUBSTITUTE: Senate Vote #280

4. PassedHouse voteMarch 27, 2025

   165 yea, 0 nay (1 not voting, 14 excused)

   Agree to Senate Substitute: House Vote #329

• property taxes
• homestead exemption
• school funding
• local sales tax
• tax assessments