HB 3: Rentz, City of; ad valorem tax; provide homestead exemption

This bill applies only to the City of Rentz, in a special tax district that covers all of Laurens County. It would exempt every homestead (a person's primary residence) inside that district from all City of Rentz property taxes. Instead of taxing homes directly, the city would rely on money collected through a new Local Homestead Option Sales Tax (LHOST), a 1 percent sales tax already authorized under Georgia law (O.C.G.A. Article 2C of Chapter 8 of Title 48), to cover the value that would otherwise have been taxed. Homeowners would need to apply for the exemption through the local tax official, though people who already have another homestead exemption and stay eligible would not need to reapply. The exemption would stack on top of, not replace, other homestead exemptions. Because it changes taxation, the bill needs a two-thirds vote in both the House and Senate, and then approval by City of Rentz voters in a November 2026 referendum. If approved, it starts January 1, 2027 and runs through the end of 2039; if rejected or not put to a vote, the whole Act repeals itself about a year later.

• Creates a homestead exemption that removes the taxable value of a primary residence from all City of Rentz property taxes for residents within the special tax district covering Laurens County.
• Ties the size of the exemption each year to the money raised by a new 1 percent Local Homestead Option Sales Tax (LHOST) collected in that district.
• Requires most homeowners to apply for the exemption but automatically renews it each year without reapplication as long as they stay eligible, and grandfathers in people who already hold another city homestead exemption.
• Requires the exemption to be approved first by a two-thirds vote of the General Assembly and then by City of Rentz voters in a November 2026 referendum before it can take effect.
• Sets the exemption to run from January 1, 2027 through December 31, 2039, and automatically repeals the entire Act if voters reject it or no election is held.

Homeowners living in the City of Rentz within the special tax district that covers Laurens County, the city's tax officials who process exemption applications, the city government that must find replacement revenue, and voters who will decide the measure in a November 2026 referendum.

If approved, eligible Rentz homeowners would see their city property tax bill on their primary residence reduced or eliminated, while the city would instead depend on sales tax revenue collected across the district to fund municipal operations, shifting part of the tax burden from property owners to consumers.

• Section 1 defines terms and grants a homestead exemption equal to the assessed value of a homestead, tied annually to net proceeds from the new LHOST sales tax collected in the special district.
• Section 1(c) and (d) set application rules, including automatic renewal each year and an exception for people already holding another city homestead exemption.
• Section 1(e) clarifies the exemption applies only to City of Rentz taxes, only to property in 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 under the Georgia Constitution before the Act can become law.
• Section 4 calls for a referendum on the Tuesday after the first Monday in November 2026, sets the exact ballot language, and makes the exemption effective January 1, 2027 if approved.
• Section 4(b) provides that if voters reject the measure or no election occurs, the entire Act automatically repeals 365 days after the election date.
• Section 4(c) allows any eligible voter to seek a court order (a writ of mandamus) forcing the election superintendent to hold the required election 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)

• James Hatchett (R, HD-155)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
• City of Rentz
• local sales tax
• Laurens County