HR 1114: Homeowner's Incentive Adjustment clause; remove cap on benefits - CA

Georgia currently taxes homes at 40 percent of their appraised value, and a statewide tax credit called the Homeowner's Incentive Adjustment is capped at the lower of $18,000 in assessed value or the homeowner's actual tax bill. This resolution asks voters to change the state Constitution to phase in a much lower taxable share for homes with a homestead exemption, dropping 3 percentage points a year starting in 2027 until it reaches 10 percent, and to remove the dollar cap on the Homeowner's Incentive Adjustment so it can cover a homeowner's full property tax bill. The amendment also creates a new full-value property tax exemption for 100 percent disabled veterans building, inheriting, or buying a primary residence, lets the state fund local tax relief grants (including from data center sales tax revenue), raises the cap on local school sales taxes for construction to 2 percent combined, allows old local sales taxes for schools to convert into the standard state-authorized version, and creates a new local homestead option sales tax counties, cities, and school systems can adopt to make up revenue lost from the lower home assessments. If approved by the General Assembly, it goes to voters for ratification.

• Phases in a lower taxable share of home value for properties with a homestead exemption, dropping from 40 percent to 10 percent of appraised value in 3-point steps starting in tax year 2027.
• Removes the dollar cap on the statewide Homeowner's Incentive Adjustment (a property tax credit), letting it offset a homeowner's entire property tax bill instead of stopping at $18,000 in assessed value.
• Creates a new 100 percent property tax exemption for 100 percent disabled veterans building, inheriting, or buying a primary home.
• Authorizes the state and local governments to fund local versions of the homeowner tax credit and to dedicate specific tax revenue, including data center sales tax collections, to pay for the grants.
• Raises the combined cap on local school sales taxes for construction projects to 2 percent and allows older local school sales taxes to convert into the standard state law version.
• Creates a new local homestead option sales tax that counties, cities, consolidated governments, and school systems can adopt to replace property tax revenue lost from the lower assessment ratio.

Georgia homeowners who claim a homestead exemption, 100 percent disabled veterans building or buying a primary residence, county and municipal governments, consolidated governments, local school boards, and taxpayers who would pay any new local homestead option sales taxes created to replace lost property tax revenue.

If ratified, most Georgia homeowners would eventually pay property tax on only a quarter of their home's current taxable share, sharply cutting local property tax bills, while local governments and schools would need new sales taxes or state grants to replace that lost revenue, changing how local services are funded statewide.

• Section 1 amends Article VII to phase down the assessed value of homestead properties from 40 percent to 10 percent of appraised value in 3 percent annual increments starting in tax year 2027, with a local option to move faster.
• Section 2 adds a constitutional provision directing the General Assembly to create a full-value property tax exemption for 100 percent disabled veterans on a primary residence.
• Section 3 removes the $18,000 cap on the Homeowner's Incentive Adjustment, letting it match the homeowner's full tax liability, and authorizes local grant programs and dedicated funding sources such as data center sales tax revenue.
• Section 4 raises local school sales tax rules, capping the combined rate of school construction sales taxes and existing education sales taxes at 2 percent, and allows old local constitutional education sales taxes to convert into the general law version by 2028.
• Section 5 creates a new local homestead option sales tax, up to 2 percent for school systems and 1 percent for counties or cities, to replace property tax revenue lost from the lower homestead assessment ratio, without requiring voter approval before 2037.
• Section 6 sets the ballot language asking voters whether to approve the assessed value reduction, the disabled veterans exemption, and the new local homestead option sales taxes.

1. 2026-03-04House Reconsidered (House)
2. 2026-03-03House Notice to Reconsider (House)
3. 2026-03-03House Third Reading Lost (House)
4. 2026-03-03House Third Readers (House)
5. 2026-03-03House Committee Favorably Reported By Substitute (House)
6. 2026-03-03House Withdrawn, Recommitted (House)
7. 2026-02-24House Committee Favorably Reported By Substitute (House)
8. 2026-02-02House Second Readers (House)

• Shaw Blackmon (R, HD-146)Primary sponsor
• Jon Burns (R, HD-159)
• Chuck Efstration (R, HD-104)
• James Hatchett (R, HD-155)
• Charles Cannon (R, HD-172)
• Charles Martin (R, HD-049)

1. PassedHouse voteMarch 3, 2026

   99 yea, 73 nay (1 not voting, 4 absent)

   Adopt: House Vote #590

2. PassedHouse voteMarch 4, 2026

   97 yea, 68 nay (10 not voting, 2 absent)

   Reconsider: House Vote #602

• property taxes
• homestead exemption
• disabled veterans benefits
• local sales taxes
• constitutional amendment