SR 56: Bona Fide Conservation Use Property; maximum acreage to qualify for assessment and taxation; increase -CA

Georgia's Constitution currently allows a state homeowner's incentive adjustment that reduces homestead property tax bills, but caps the benefit at the value of an $18,000 homestead exemption or the homeowner's actual tax bill, whichever is lower. This resolution proposes a constitutional amendment removing that dollar cap so the adjustment could cover a homeowner's full ad valorem (property) tax liability on their home. The amendment also lets the General Assembly pass laws allowing local governments and local school systems to create their own local grant and property tax relief programs funded by local tax dollars. Separately, it adds a new constitutional provision letting local school systems ask voters to approve a 1 percent local option sales tax, for up to five years at a time, to offset property tax relief for homeowners. If passed by the legislature, the amendment goes to voters for ratification or rejection in a statewide referendum.

• Removes the existing cap on the state homeowner's incentive adjustment, which currently limits relief to the value of an $18,000 exemption or the homeowner's tax bill, whichever is lower.
• Allows the adjustment to instead cover a taxpayer's full property tax liability (called ad valorem tax) on their home.
• Authorizes the General Assembly to pass laws letting local governments and local school systems create their own local grant programs and homeowner tax relief adjustments funded with local tax money.
• Adds a new constitutional provision allowing local school systems to impose a 1 percent local sales and use tax for up to five years to offset reductions in homestead property tax relief.
• Sends the proposed constitutional amendment to Georgia voters for a yes or no vote in a statewide referendum.

Georgia homeowners who claim the state homestead exemption would see potentially larger property tax relief. Local governments and local school systems would gain new authority to create local tax relief programs and, for school systems, to seek voter approval for a new local sales tax.

If ratified, homeowners could receive property tax relief covering their full tax bill instead of a capped amount, and local school systems could ask voters to approve a new sales tax to help pay for that relief, shifting some of the cost from property taxes to sales taxes.

• Section 1 revises Article VII, Section IIA, Paragraph I of the Constitution to remove the $18,000 exemption-value cap on the homeowner's incentive adjustment, allowing it to reach the homeowner's full property tax liability.
• Section 1 also authorizes the General Assembly to let local governments and local school systems establish their own local grant programs and homeowner incentive adjustments using local tax funds.
• Section 2 adds Article VIII, Section VI, Paragraph V, allowing local school systems to impose a 1 percent local option sales tax for up to five years specifically for homestead property tax relief.
• Section 2 specifies that reimposing the sales tax after it expires requires the same voter approval process as the original imposition, and the new tax cannot start until the old one ends.
• Section 3 sets the ballot language voters will see, asking whether to authorize local grants and adjustments, remove the current benefit cap, and allow a sales tax to offset the relief.

1. 2026-03-31House Committee Favorably Reported By Substitute (House)
2. 2025-02-21House Second Readers (House)
3. 2025-02-20House First Readers (House)
4. 2025-02-19Senate Passed/Adopted (Senate)
5. 2025-02-19Senate Third Read (Senate)
6. 2025-02-19Senate Engrossed (Senate)
7. 2025-02-18Senate Read Second Time (Senate)
8. 2025-02-13Senate Committee Favorably Reported (Senate)

• Sam Watson (R, SD-011)Primary sponsor
• Billy Hickman (R, SD-004)
• Russ Goodman (R, SD-008)
• Lee Anderson (R, SD-024)
• John Kennedy (R, SD-018)
• Shaw Blackmon (R, HD-146)

1. PassedSenate voteFebruary 19, 2025

   31 yea, 21 nay (1 not voting, 3 absent)

   Motion To Engross: Sb 45, Sb 59, Sb 89, And Sr 56: Senate Vote #63

2. PassedSenate voteFebruary 19, 2025

   51 yea, 1 nay (0 not voting, 4 absent)

   Adoption Of Constitutional Amendment: Senate Vote #64

• property taxes
• homestead exemption
• local option sales tax
• school funding
• constitutional amendment