HB 31: Damascus, City of; ad valorem tax; provide homestead exemption

This bill would create a homestead exemption from City of Damascus property taxes (ad valorem taxes) for homeowners whose primary residence sits within a special tax district that covers all of Early County. The exemption amount would not be a fixed dollar figure. Instead it would be recalculated each year based on how much money comes in from a new Local Homestead Option Sales Tax (LHOST), a 1 percent sales tax that the special district would also have to approve. Homeowners would need to apply once with the local tax official, and the exemption would then renew automatically each year as long as they still qualify. The exemption would run from the year after voters approve it through the end of 2039. Because it involves a constitutional homestead exemption, the bill needs a two-thirds vote in both the House and Senate, and then approval by Damascus voters in a November 2026 referendum. If voters reject it, or no election is held, the bill repeals itself.

• Creates a homestead exemption from City of Damascus property taxes for homeowners in the special tax district covering Early County.
• Ties the exemption's dollar amount each year to the revenue collected from a new 1 percent local sales tax (LHOST) rather than setting a fixed amount.
• Requires a one time application with the local tax official, after which the exemption renews automatically each year without reapplying.
• Sets the exemption to run from the year after voter approval through December 31, 2039, then expire.
• Requires a two thirds vote in the General Assembly and a November 2026 referendum of Damascus voters in the special district before it can take effect.
• Automatically repeals the entire Act if voters reject it or if the required election is not held.

Homeowners whose primary residence is within the special tax district conterminous with Early County and the City of Damascus; the city's tax officials and election superintendent, who must administer the exemption and run the referendum; and local shoppers, who would pay the new 1 percent sales tax funding the exemption.

If approved, homeowners in the district would see part of their home's value shielded from city property taxes, with the exact break shifting each year based on sales tax collections rather than staying fixed, while the cost is shifted onto everyday retail purchases through the new local sales tax.

• Section 1 defines key terms and grants the exemption in an amount equal to the assessed value covered by net LHOST proceeds collected in the special district, with any value above that remaining taxable.
• Section 1(c) and (d) set application rules, allowing automatic carryover of eligibility for those who already had a prior homestead exemption and requiring self reporting if a person becomes ineligible.
• Section 1(e) clarifies the exemption applies only to city ad valorem taxes on property within the special district, stacks on top of other homestead exemptions, and runs from the year after referendum 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, per the Georgia Constitution.
• Section 4 schedules a November 2026 referendum in Damascus, specifies the ballot language, and states the exemption takes effect January 1, 2027 if approved.
• Section 4(b) provides that if voters reject the measure or the election is not properly held, the Act automatically repeals itself 365 days after the election date.
• Section 4(c) allows any local elector to seek a court order (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)

• Gerald Greene (R, HD-154)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
• local sales tax
• Early County
• Damascus city government