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Senate · Passed · 2025-2026 Regular Session

SB 33: "Georgia Hemp Farming Act"; total THC concentration of consumable hemp products; provide limits

Last action May 11, 2026 · Effective Date

A Georgia Senate bill would overhaul several property tax rules statewide, creating a new local sales tax option to fund homestead exemptions, tightening how homestead exemption values are calculated, and changing when local governments can hold tax-related special elections.

Read the full bill text

These buttons carry the bill's own text, not the summaries below. Copy for LLM, View as markdown, and Send to AI use the Markdown version: the text as filed, then the summaries under a heading that names them as ours. View raw is the text alone.

The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Enrolled version, the latest the General Assembly's website lists.

In plain language

This bill, formally cited as the 'Homeownership Opportunity and Market Equalization Act of 2026,' rewrites parts of Georgia's property tax and election laws. It creates a new local option sales tax called the Local Homestead Option Sales Tax (LHOST), which counties and cities can adopt by referendum starting January 1, 2028, to fund homestead exemptions that offset property taxes on primary residences. The tax is capped at 1 percent, lasts up to ten years unless renewed, and its proceeds are distributed through county tax commissioners based on formulas tied to local millage rates. The bill also changes how the state calculates school funding by excluding certain exempted property values from the equalized school tax digest, raises a local budget threshold from 15 percent to 25 percent, and revises the state's base year homestead exemption program, including how 'substantial property change' is defined and how base values reset when a homeowner loses and later regains eligibility. It requires municipal and school tax officials, not just counties, to finish assessments by July 15. It bars retroactive tax bills for exemption mistakes that were not the taxpayer's fault, and it restricts special elections about local revenue increases to specific dates in odd and even years. The law would take effect as soon as the Governor signs it.

What the bill does

  • Creates a new Local Homestead Option Sales Tax (LHOST) that counties and cities can adopt by referendum, capped at 1 percent, to fund homestead exemptions starting January 1, 2028.
  • Excludes certain exempted property values from the equalized adjusted school property tax digest used to calculate state school funding and local mill share.
  • Raises the cap on local school district reserve fund spending on direct instructional and staff costs from 15 percent to 25 percent.
  • Restricts special elections asking voters to approve local revenue or tax increases to specific dates in odd and even numbered years.
  • Makes the state-wide base year homestead exemption program mandatory for all cities, counties, and school districts and revises how base property values and 'substantial property change' are calculated.
  • Bars tax officials from retroactively billing a taxpayer for back taxes caused by a mistakenly applied homestead exemption that was not the taxpayer's fault.

Who it affects

Homeowners applying for or holding homestead exemptions, county and municipal governments and their tax commissioners, county boards of tax assessors, local school systems and their finance officials, and voters who would decide on local sales tax or revenue referendums under the new election date rules.

Why it matters

Homeowners in counties that adopt the new sales tax could see property tax bills reduced through LHOST-funded exemptions, while local governments gain a new funding tool tied to referendums. School funding calculations and local election timing would also shift, and taxpayers would be protected from surprise back-tax bills caused by exemption errors that were not their fault.

Key provisions

  • Sections 2-1 through 2-3 create the Local Homestead Option Sales Tax (LHOST) under new Code Sections 48-8-109.50 through 48-8-109.63, allowing a 1 percent county sales tax by referendum, capped at ten years unless renewed, with proceeds distributed to fund homestead exemptions starting January 1, 2028.
  • Section 3-1 excludes the value of certain homestead and local constitutional property tax exemptions from the equalized adjusted school property tax digest used to calculate state school equalization grants (O.C.G.A. § 20-2-164).
  • Section 3-2 raises a local school budget spending cap from 15 percent to 25 percent under O.C.G.A. § 20-2-167.
  • Section 4-1 amends O.C.G.A. § 21-2-540 to limit special elections on local revenue or tax increase questions to the general primary date or the Tuesday after the first Monday in November, depending on the year.
  • Section 5-1 revises the state-wide base year homestead exemption (O.C.G.A. § 48-5-44.2), changing definitions of 'base year assessed value' and 'substantial property change' and resetting base values when eligibility lapses and resumes.
  • Section 5-2 requires municipal and school tax officials, in addition to county boards of tax assessors, to complete property assessments by July 15 each year (O.C.G.A. § 48-5-302).
  • Section 5-3 prohibits tax commissioners from retroactively assessing back taxes on a taxpayer when a homestead exemption error was not the taxpayer's fault (O.C.G.A. § 48-5-303).
  • Section 6-1 makes the Act effective immediately upon the Governor's signature or becoming law without signature.

From the bill

“there shall be imposed within any special district a special sales and use tax to be levied and collected to fund homestead exemptions from ad valorem taxes imposed by eligible local governments on homestead property within the special district.”

This is the core rule creating the new Local Homestead Option Sales Tax.

“the tax receiver or tax commissioner shall be prohibited from retroactively assessing the taxpayer the difference in ad valorem taxes actually paid by the taxpayer and the amount of ad valorem taxes that would have been assessed on the taxpayer but for the improperly or mistakenly applied homestead exemption.”

This protects taxpayers from back taxes caused by exemption errors that were not their fault.

Discussed in meetings (9)

The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.

  1. House Agriculture & Consumer Affairs Committee, February 3, 2026

    From 0:28:21 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor said the substitute would mirror federal hemp restrictions taking effect in November 2026 and enable state enforcement. The sponsor cited illnesses linked to delta-8 and other intoxicating products. After confusion over substitute versions, the chair identified the committee’s working version; the sponsor anticipated further changes. Asked about work since last session, the sponsor said the main change was alignment with federal law. The chair said a House panel had held meetings but issued no report. One witness requested postponement, citing federal uncertainty and arguing that existing age limits and testing requirements already addressed safety concerns. A US Hemp Roundtable witness urged rejection, saying restrictions would threaten businesses, jobs and access to therapeutic CBD products while pushing consumers toward illegal sellers. That witness cited a University of Georgia study estimating over $150 million in industry tax revenue in 2024. A Georgia Council for Recovery witness supported THC limits, arguing that high levels cause serious medical harm and public costs exceeding industry revenue. A Georgia Baptist Mission Board witness supported alignment with federal restrictions and tighter limits on intoxicating hemp products, citing public health and safety. A final witness began an analogy criticizing the approach before time expired. No vote occurred; the chair announced another hearing for the following week.

  2. House Agriculture & Consumer Affairs Committee, March 17, 2026

    From 0:03:46 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor said the substitute sought to remove unsafe products and align state rules with federal changes. The sponsor relayed an emergency doctor's report of recurring accidental THC ingestion by children. The chair said the first part would prohibit synthetic cannabinoids while allowing plant-derived products, and the second would address federal changes. One member questioned acting before federal rules were settled; another raised concerns about surrendering state authority. Members also asked about testing delays, seizures and labeling. The Department of Agriculture's policy director said some violations could be identified without testing and described inspections, licensing and problems with mismatched batch-testing records. The chair said labeling requirements would not change. Another member recommended naming the U.S. Department of Agriculture specifically in the federal provisions. The policy director said express authority to obtain product-return records might require added language. Neither suggestion was adopted during the hearing. The Level Mind CBD owner warned that the limits would threaten even nonintoxicating products. A parent witness described a child's hallucinations and urged restrictions. The Georgia Association of Convenience Stores president argued that existing regulation should continue and warned of illegal markets. A Georgians for Responsible Marijuana Policy witness said current safeguards were failing families and supported federal alignment. A Hemp World business owner said synthetic restrictions would damage vape and pre-roll sales and requested further study. The committee took no vote.

  3. House Agriculture & Consumer Affairs Committee, March 24, 2026

    From 0:18:23 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor said SB 33 would protect consumers from intoxicating cannabinoids lacking safeguards applied to Delta-9. The sponsor’s version would follow federal limits of 0.3% by dry weight and 0.4 milligrams per container, cover vapes above the limit, authorize destruction of noncompliant products and take effect January 1, 2027. The sponsor said federal enforcement was scheduled for November 12, 2026. Members questioned federal timing and state enforcement authority, and reported concerns from businesses and families about lost access to products. The sponsor cited injuries and children requiring intensive care as reasons to act. The chair offered a narrower substitute. A Department of Agriculture representative said it would restrict cannabinoids incapable of occurring naturally in the cannabis plant, add drug penalties and expand seizure authority, while leaving existing Delta-9 limits unchanged. The representative clarified that Delta-8 would not be covered, even when made synthetically, and said federal implementation might be delayed. Asked about enforcement costs, the representative had no estimate and said the department needed more support. The representative also explained existing package labeling and testing requirements for hemp vapes. After a member questioned an undefined term, the committee adopted an amendment defining products containing synthetic cannabinoids and adding related references. The committee then unanimously recommended passage of the substitute as amended.

  4. House Rules Committee, March 27, 2026

    From 0:23:28 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor said the committee-revised version of SB 33 would ban synthetic cannabinoids, give the agriculture commissioner authority to impound illegal products, and add penalties. There were no questions or further action shown.

  5. House floor session, March 31, 2026 (legislative day 39, part 3)

    From 0:24:19 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 4126

    Summary by Georgia Commons: The sponsor said the House substitute distinguishes natural hemp products from lab-created synthetic cannabinoids and gives the Department of Agriculture and local law enforcement authority to confiscate prohibited products. The sponsor described synthetic products as a health risk and said the substitute was substantially narrower than the Senate version. One member asked whether retailers could sell existing inventory before penalties applied. The sponsor said a delayed effective date later in the year would give manufacturers and retailers time to clear stock. A second member said the Department of Agriculture had reported that fewer than half of products met existing standards. The sponsor agreed the bill was a first step toward removing the worst products. Another member said the measure targets wholly synthetic products rather than natural hemp, and the sponsor agreed. The House adopted the committee substitute and passed the bill, 151 to 14.

  6. House Rules Committee, March 31, 2026

    From 0:28:41 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 3953

    Summary by Georgia Commons: The committee placed SB 33 on the supplemental floor calendar without stated opposition. No substantive discussion occurred.

  7. Senate floor session, April 2, 2026 (legislative day 40, part 2)

    From 5:16:38 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Agreed House Amend or Sub As Amended)

    Summary by Georgia Commons: The presenter offered an amendment replacing all hemp provisions in SB 33 with a revised property-tax package based on the proposal that had just failed. The presenter said the revision removed limits on local tax-revenue growth and the Taxpayer Bill of Rights, while retaining mandatory property-value growth limits, local sales-tax options for homeowner relief and school-funding adjustments. The presenter also described applying the first six months of initial sales-tax proceeds to property taxes and carrying the second six months into the following year. One member objected to ending debate on a revised proposal that still used sales taxes to fund homeowner exemptions. Another raised a procedural objection because earlier-numbered amendments had not been considered; the chair said those amendments had not been recognized. The Senate voted 32–21 to end debate, then agreed to the House substitute as amended, 32–21.

  8. House floor session, April 2, 2026 (legislative day 40, PM, part 2)

    From 5:31:08 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (House Agreed Senate Amend or Sub)

    Summary by Georgia Commons: The clerk read SB 33 as amending the Georgia Hemp Farming Act. The presenter urged members to put taxpayers and the public ahead of individual legislators but did not explain the Senate amendment or the bill's substantive provisions. No questions or substantive debate followed. The House agreed to the Senate amendment to the House's replacement version, 97 to 72.

Status timeline

  1. 2026-05-11Effective Date
  2. 2026-05-11Act 461
  3. 2026-05-11Senate Date Signed by Governor (Senate)
  4. 2026-04-10Senate Sent to Governor (Senate)
  5. 2026-04-02House Agreed Senate Amend or Sub (House)
  6. 2026-04-02Senate Agreed House Amend or Sub As Amended (Senate)
  7. 2026-03-31House Passed/Adopted By Substitute (House)
  8. 2026-03-31House Third Readers (House)
Show full history (17 actions)
  1. 2026-03-25House Committee Favorably Reported By Substitute (House)
  2. 2025-03-11House Second Readers (House)
  3. 2025-03-10House First Readers (House)
  4. 2025-03-06Senate Passed/Adopted By Substitute (Senate)
  5. 2025-03-06Senate Third Read (Senate)
  6. 2025-02-24Senate Read Second Time (Senate)
  7. 2025-02-21Senate Committee Favorably Reported By Substitute (Senate)
  8. 2025-01-28Senate Read and Referred (Senate)
  9. 2025-01-27Senate Hopper (Senate)

Sponsors

  • Kay Kirkpatrick (R, SD-32)Primary sponsor
  • Ben Watson (R, SD-1)
  • Bill Cowsert (R, SD-46)
  • Sam Watson (R, SD-11)
  • Elena Parent (D, SD-44)
  • Chuck Hufstetler (R, SD-52)
  • John F. Kennedy (R, SD-18)
  • John Albers (R, SD-56)
  • Michael 'Doc' Rhett (D, SD-33)
  • Mike Hodges (R, SD-3)
  • Max Burns (R, SD-23)
  • Ed Harbison (D, SD-15)
  • Randy Robertson (R, SD-29)
  • Steve Gooch (R, SD-51)
  • Marty Harbin (R, SD-16)
  • Robert Dickey (R, HD-134)

Votes

  1. PassedSenate voteMarch 6, 2025

    50 yea, 6 nay

    PASSAGE BY SUBSTITUTE: Senate Vote #168

  2. PassedHouse voteMarch 31, 2026

    151 yea, 14 nay (3 not voting, 8 excused)

    PASSAGE: House Vote #819

  3. PassedSenate voteApril 2, 2026

    32 yea, 21 nay (0 not voting, 1 excused)

    MOTION FOR THE PREVIOUS QUESTION: Senate Vote #979

  4. PassedSenate voteApril 2, 2026

    32 yea, 21 nay (0 not voting, 1 excused)

    AGREE TO HOUSE SUBSTITUTE AS AMENDED: Senate Vote #980

  5. PassedHouse voteApril 3, 2026

    97 yea, 72 nay (5 not voting, 2 excused)

    Agree to Senate Amend to House Sub: House Vote #879

Topics

  • property taxes
  • homestead exemptions
  • local sales tax
  • school funding
  • election dates

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