Georgia CommonsHB 20: Madison, City of; ad valorem tax; provide homestead exemption
Last action June 22, 2026 · House Lost Reconsidered Bill/Resolution
A House bill would give homeowners in the City of Madison a property tax exemption funded by a new 1 percent local sales tax in Morgan County, pending voter approval in a November 2026 referendum.
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 Introduced version, the latest LegiScan holds.
In plain language
This bill sets up a homestead exemption from City of Madison property taxes (ad valorem taxes) for people who own and live in a home within a special tax district that covers all of Morgan County. Instead of homeowners paying that portion of city property tax, the lost revenue would be replaced by money raised through a new Local Homestead Option Sales Tax (LHOST), a 1 percent sales tax that voters would also have to approve. The exemption amount would be recalculated each year based on how much the sales tax actually brings in. Homeowners would need to apply once, and the exemption would then renew automatically as long as they keep qualifying. The whole plan depends on a November 2026 referendum; if voters reject it or no election is held, the bill automatically repeals itself about a year later. If approved, the tax change starts January 1, 2027 and runs through the end of 2039.
What the bill does
- Creates a homestead exemption from City of Madison property taxes equal to the value covered by new local sales tax proceeds each year.
- Ties the exemption's size to how much revenue a new 1 percent Local Homestead Option Sales Tax (LHOST) raises within Morgan County each year.
- Requires homeowners to apply once for the exemption, after which it renews automatically unless they become ineligible.
- Sets the exemption to apply from January 1, 2027 through December 31, 2039, then expire.
- Requires a citywide referendum in November 2026 and automatically repeals the whole Act if voters reject it or no valid election occurs.
- Requires a two-thirds vote in both the Georgia House and Senate for the bill to become law, per the state constitution.
Who it affects
Homeowners living in the City of Madison within the special tax district covering Morgan County, the city government that collects property taxes, local tax officials who process exemption applications, and the county election superintendent who must run the November 2026 referendum.
Why it matters
If approved by voters, eligible Madison homeowners would see part or all of their city property tax bill offset by proceeds from a new sales tax instead, shifting some of the local tax burden from property owners toward anyone making purchases in the county, including non-residents.
Key provisions
- Section 1 defines key terms and grants the exemption, sized annually to match net proceeds of the new sales tax collected under O.C.G.A. Article 2C of Chapter 8 of Title 48.
- Section 1(c) and (d) set application rules, allowing automatic renewal once a homeowner is approved and requiring notice if they become ineligible.
- Section 1(e) clarifies the exemption applies only within the special district, only to city taxes, and stacks on top of other homestead exemptions, running from 2027 through the end of 2039.
- Section 3 requires a two-thirds majority vote in both legislative chambers for the bill to take effect, as required by the Georgia Constitution.
- Section 4 schedules a citywide referendum for November 2026, specifies the ballot language, and sets automatic repeal 365 days after the election if voters reject the measure.
- Section 4(c) allows any city elector to seek a court order (writ of mandamus) forcing the election superintendent to hold the vote if they fail to do so.
- Section 5 makes the bill effective upon the Governor's signature or its becoming law without signature, except for the referendum timeline in Section 4.
From the bill
“Each resident of the special district is granted an exemption from all ad valorem taxes imposed by the city for all purposes in the amount of the assessed value of such homestead property as is determined annually based upon the net proceeds of the sales and use tax collected”
“Shall be in addition to and not in lieu of any other homestead exemption applicable to the homestead property”
Status timeline
- House Lost Reconsidered Bill/Resolution (House)
- House Reconsidered (House)
- House Notice to Reconsider (House)
- House Third Reading Lost (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
- House Second Readers (House)
- House First Readers (House)
Show full history (9 actions)
- House Hopper (House)
Sponsors
- Tim Fleming (R, HD-114)
Votes
- House voteJune 20, 2026
95 yea, 67 nay (5 not voting, 12 absent)
- House voteJune 22, 2026
97 yea, 75 nay (1 not voting, 6 absent)
- House voteJune 22, 2026
99 yea, 74 nay (1 not voting, 5 absent)
Topics
- property taxes
- homestead exemption
- local sales tax
- Madison Georgia
- Morgan County referendum