HB 15: McCaysville, City of; ad valorem tax; provide homestead exemption

This bill creates a homestead exemption from City of McCaysville property taxes (ad valorem taxes) for homeowners whose primary residence sits within a special tax district that covers all of Fannin County. Instead of a fixed dollar exemption, the amount would be recalculated each year based on how much money a new Local Homestead Option Sales Tax (LHOST) brings in from that district. The bill sets out definitions, application procedures, and automatic renewal rules for the exemption, and says it applies on top of any other homestead exemption a homeowner already receives. The exemption would only take effect if voters in the special district approve it in a November 2026 referendum, and if approved it would apply from January 1, 2027 through December 31, 2039. If voters reject it or no valid election occurs, the entire Act would be automatically repealed about a year after the election date. Because it involves a local homestead exemption, the bill also needs a two-thirds vote in both chambers of the General Assembly.

• Creates a City of McCaysville property tax exemption for homestead property, sized each year to match the money raised by a new 1 percent local sales tax (LHOST) in the Fannin County special district.
• Requires homeowners to apply for the exemption once, after which it renews automatically each year as long as they remain eligible and keep living in the home.
• Makes the exemption stack on top of, rather than replace, any other homestead exemption the property already qualifies for.
• Sets the exemption to run from January 1, 2027 through December 31, 2039, contingent on voter approval in a November 2026 referendum.
• Automatically repeals the entire Act about 365 days after the referendum if voters reject it or the election is not properly held.
• Requires a two-thirds majority vote in both the Georgia House and Senate for the bill to become law, per the state constitution.

Homeowners with a primary residence inside the special tax district covering Fannin County, especially those within the City of McCaysville; the McCaysville city government, which loses some property tax revenue but gains sales tax funding; and the local tax official and election superintendent, who administer the exemption and the referendum.

If approved by voters, homeowners in the district would see a portion of their home's assessed value shielded from city property taxes each year, funded instead by a new local sales tax. The size of the tax break would shift annually depending on sales tax collections rather than staying fixed.

• Section 1 defines key terms like 'homestead property,' 'LHOST,' and 'special district' and grants an exemption equal to the assessed value covered by net LHOST proceeds collected in the district.
• Section 1(c) and (d) set application requirements, allow automatic carryover for people already receiving a similar exemption, and require notice if a person becomes ineligible.
• Section 1(e) clarifies the exemption applies only to city taxes, only within the special district, stacks with other exemptions, and runs from the year after voter approval through December 31, 2039.
• Section 3 requires a two-thirds majority vote in both the House and Senate for the Act to become law, as required by the Georgia Constitution.
• Section 4 schedules a referendum for the November 2026 general election, sets the exact ballot language, and makes the exemption effective January 1, 2027 only if a majority votes yes.
• Section 4(b) provides that if voters reject the measure or the election is not held properly, the Act is automatically repealed 365 days after the election date.
• Section 4(c) allows any elector to seek a court order (writ of mandamus) forcing the election superintendent to hold the referendum if they fail to do so.

1. 2026-06-22House Lost Reconsidered Bill/Resolution (House)
2. 2026-06-22House Reconsidered (House)
3. 2026-06-20House Notice to Reconsider (House)
4. 2026-06-20House Third Reading Lost (House)
5. 2026-06-20House Third Readers (House)
6. 2026-06-20House Committee Favorably Reported (House)
7. 2026-06-18House Second Readers (House)
8. 2026-06-17House First Readers (House)

• Johnny Chastain (R, HD-007)Primary sponsor

1. PassedHouse voteJune 20, 2026

   95 yea, 67 nay (5 not voting, 12 absent)

   Local Calendar : House Vote #5

2. PassedHouse voteJune 22, 2026

   97 yea, 75 nay (1 not voting, 6 absent)

   Local Calendar: House Vote #9

3. PassedHouse voteJune 22, 2026

   99 yea, 74 nay (1 not voting, 5 absent)

   Local Calendar : House Vote #10

• property taxes
• homestead exemption
• McCaysville
• Fannin County
• local sales tax