HB 60: Montgomery County; ad valorem tax; provide homestead exemption

This bill sets up a local homestead exemption for Montgomery County, Georgia, that would offset a homeowner's county property taxes by an amount tied to the money raised each year from a new Local Homestead Option Sales Tax (LHOST). The sales tax and the exemption only apply within a special tax district that covers the whole county. 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 and live there. It would stack on top of any other homestead exemption they already receive, but only offsets county taxes, not school or city taxes. Because it changes local tax law, the bill needs a two-thirds vote in the General Assembly and then approval by Montgomery County voters in a November 2026 referendum. If approved, the exemption runs from 2027 through 2039 and the sales tax from 2028 through 2037; if rejected or if no election is held, the whole Act repeals itself automatically about a year after the election date.

• Creates a homestead exemption for Montgomery County property owners equal to the assessed value covered by new local sales tax proceeds collected in the special tax district.
• Requires homeowners to file one application with the local tax official, after which the exemption renews automatically each year without reapplying.
• Makes the exemption apply only to county-imposed property taxes, only within the special district, and only in addition to other existing homestead exemptions.
• Sets the exemption's active period from January 1, 2027 (if approved) through December 31, 2039, tied to a Local Homestead Option Sales Tax running 2028 through 2037.
• Requires a countywide referendum in November 2026 and a two-thirds vote in the General Assembly before the law can take effect.
• Automatically repeals the entire Act 365 days after the election if voters reject it or if the election is not properly held.

Montgomery County homeowners who qualify for a homestead exemption, the county tax official who processes applications, the county election superintendent who must run the referendum, and county government, which collects both the property tax and the new local sales tax.

If voters approve it, homeowners in Montgomery County would see part of their county property tax bill offset each year by revenue from a new 1 percent sales tax, shifting some of the local tax burden from property owners to sales tax paid by anyone shopping in the county.

• Section 1 defines key terms, including 'homestead property' and 'special district,' and grants the exemption based on annual LHOST sales tax proceeds within Montgomery County.
• Section 1(c) and (d) set the application process, allowing prior homestead exemption holders to skip a new application and providing automatic annual renewal.
• Section 1(e) limits the exemption to county taxes only, to property within the special district, and states it applies from 2027 through 2039.
• Section 1(f) sets the LHOST sales tax period from January 1, 2028 through December 31, 2037.
• Section 3 requires a two-thirds majority vote in both chambers of the General Assembly for the Act to become law.
• Section 4 requires a countywide referendum on November 3, 2026, with automatic repeal 365 days later if voters reject the measure or the election is not held.
• Section 4(c) allows any county voter to seek a court order (writ of mandamus) forcing the election superintendent to hold the vote 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)

• Leesa Hagan (R, HD-156)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
• Montgomery County
• ballot referendum