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

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.

• 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.

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.

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.

• 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.

1. 2026-05-11Effective Date 2026-05-11
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)

• Kay Kirkpatrick (R, SD-032)Primary sponsor
• Ben Watson (R, SD-001)
• Bill Cowsert (R, SD-046)
• Sam Watson (R, SD-011)
• Elena Parent (D, SD-044)
• Chuck Hufstetler (R, SD-052)
• John Kennedy (R, SD-018)
• John Albers (R, SD-056)
• Michael Rhett (D, SD-033)
• Mike Hodges (R, SD-003)
• Max Burns (R, SD-023)
• Ed Harbison (D, SD-015)
• Randy Robertson (R, SD-029)
• Steve Gooch (R, SD-051)
• Marty Harbin (R, SD-016)
• Robert Dickey (R, HD-134)

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 absent)

   Passage: House Vote #819

3. PassedSenate voteApril 2, 2026

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

   Motion For The Previous Question: Senate Vote #979

4. PassedSenate voteApril 2, 2026

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

   Agree To House Substitute As Amended: Senate Vote #980

5. PassedHouse voteApril 3, 2026

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

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

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