HB 37: Effingham County; ad valorem tax; provide homestead exemption

This bill applies only to Effingham County. It would create a homestead exemption, a break on property taxes for a primary home, from county ad valorem (property) taxes. Instead of a fixed dollar exemption, the amount would change every year based on how much money a new 1 percent Local Homestead Option Sales Tax (LHOST) collects in the county. Homeowners would still need to apply for the exemption once, though it would renew automatically as long as they remain eligible. The exemption would only apply to county government taxes, not school or city taxes, and only to property inside the special tax district covering Effingham County. It would run from January 1, 2027 through December 31, 2039, while the sales tax itself would run from 2028 through 2037. None of this takes effect unless two-thirds of the General Assembly approves it and Effingham County voters say yes in a November 2026 referendum.

• Creates a homestead exemption from Effingham County property taxes tied to yearly revenue from a new 1 percent local sales tax rather than a fixed dollar amount.
• Requires homeowners to apply once with the county tax official, with automatic renewal each year as long as they stay eligible.
• Limits the exemption to county-level taxes only, applying just to homes within the special tax district that covers the whole county.
• Schedules the exemption for tax years from 2027 through 2039, while the underlying sales tax would run from 2028 through 2037.
• Requires a countywide referendum in November 2026 before the law can take effect, plus a two-thirds vote in the General Assembly.
• Automatically repeals the entire Act if voters reject it or if the election is not held as required.

Homeowners in Effingham County who claim a homestead exemption, the county tax commissioner's office that processes applications, the county election superintendent who must run the referendum, and shoppers in the county who would pay the new 1 percent sales tax funding the exemption.

If voters approve it, homeowners in Effingham County would see a shifting property tax reduction funded by sales tax revenue instead of general county funds, effectively moving some of the local tax burden from property owners to anyone making purchases in the county through 2037.

• Section 1 defines key terms and grants a homestead exemption equal to the assessed value covered by net proceeds of the new LHOST collected in the special district.
• Section 1(c) and (d) set application procedures, including automatic renewal and a duty to report if a homeowner becomes ineligible.
• Section 1(e) clarifies the exemption applies only to county taxes, only within the special district, and stacks on top of other existing homestead exemptions.
• Section 1(f) sets the LHOST sales tax period from January 1, 2028 through December 31, 2037, and the exemption period from 2027 through 2039.
• Section 3 requires a two-thirds majority vote in both the Georgia House and Senate for the Act to become law.
• Section 4 requires a countywide referendum on the November 2026 ballot and spells out the exact ballot question voters will see.
• Section 4(b) provides that if voters reject the measure or the election isn't held properly, the entire Act is automatically repealed 365 days after the election date.

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)

• Bill Hitchens (R, HD-161)Primary sponsor
• Jon Burns (R, HD-159)

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
• Effingham County
• local sales tax
• referendum