HB 5: Cadwell, City of; ad valorem tax; provide homestead exemption

This bill would give homeowners in the City of Cadwell (located in Laurens County) an exemption from city property taxes equal to the assessed value of their homestead property, but only up to an amount funded by proceeds from a new Local Homestead Option Sales Tax (LHOST) collected in the special tax district covering Laurens County. Any property value above that exempted amount would still be taxed normally. Homeowners would need to apply for the exemption once, and it would renew automatically each year as long as they remain eligible. The exemption would run from the year after voters approve it through the end of 2039. Because it affects the state constitution's tax rules, the bill needs a two-thirds vote in both the House and Senate, and voters in the district must approve it in a November 2026 referendum before it can take effect on January 1, 2027. If voters reject it or no election is held, the bill repeals itself automatically about a year later.

• Creates a new homestead exemption from City of Cadwell property taxes equal to the assessed value of a homestead, funded by proceeds of a new 1 percent local sales tax (LHOST) in the Laurens County special district.
• Requires homeowners to apply once with the local tax official, after which the exemption renews automatically each year without reapplication.
• Limits the exemption so it applies only to City of Cadwell property taxes, only to property within the special tax district, and stacks on top of (not instead of) other homestead exemptions.
• Sets the exemption period to run from the year after voter approval through December 31, 2039.
• Requires a statewide two-thirds vote in the General Assembly and a local voter referendum in November 2026 before the exemption can take effect.
• Automatically repeals the entire Act if voters reject it or if the required election is not held within 365 days of the scheduled election date.

Homeowners who own homestead property within the City of Cadwell and the surrounding special tax district in Laurens County, the city's local tax official who processes exemption applications, and the city's election superintendent, who must run the November 2026 referendum.

If approved by voters, homeowners in the district would see part or all of their City of Cadwell property tax bill offset by revenue from a new local sales tax instead, shifting some of the tax burden from property owners to sales tax paid by everyone shopping in the district.

• Section 1 defines key terms, including 'homestead property' and 'LHOST', and grants the exemption based on net proceeds from the new sales tax collected within the special district.
• Section 1(c) and (d) set the application process, allowing automatic renewal for those already receiving another city homestead exemption and requiring notice if a person becomes ineligible.
• Section 1(e) limits the exemption to city taxes only, to property within the special district, stacks it atop other exemptions, and sets it to run through December 31, 2039.
• Section 3 requires a two-thirds majority vote in both chambers of the General Assembly because the bill affects constitutional tax provisions.
• Section 4 schedules a local referendum for November 2026, specifies the ballot language, and sets the exemption's effective date as January 1, 2027 if approved.
• Section 4(b) provides for automatic repeal of the entire Act 365 days after the election if voters reject it or if no election occurs.
• Section 4(c) allows any local voter to seek a court order (writ of mandamus) forcing the election superintendent to hold the required election.

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
• local sales tax
• Laurens County
• City of Cadwell