HB 65: Dahlonega, City of; ad valorem tax; provide homestead exemption

Currently the City of Dahlonega does not offer this particular homestead exemption. This bill would create one for homeowners whose primary residence sits within a special tax district that covers all of Lumpkin County. The exemption amount would not be fixed; instead it would be set each year based on how much money comes in from a new Local Homestead Option Sales Tax (LHOST), a 1 percent sales tax dedicated to funding the exemption. Homeowners would need to apply once with the local tax official, and the exemption would then renew automatically each year as long as they remain eligible. Because this changes how city taxes work, Georgia's constitution requires the bill to pass with a two-thirds vote in both the House and Senate. It would also need approval from Dahlonega voters in a November 2026 referendum. If approved, the exemption would apply from 2027 through the end of 2039, when it would expire. If voters reject it, the whole Act would automatically repeal one year after the election.

• Creates a new homestead exemption from City of Dahlonega property taxes, with the amount recalculated each year based on new local sales tax revenue.
• Requires funding for the exemption to come from a new 1 percent Local Homestead Option Sales Tax collected across the Lumpkin County special tax district.
• Requires homeowners to apply once with the local tax official, after which the exemption renews automatically each year without a new application.
• Sets the exemption to run from January 1 of the year after voter approval through December 31, 2039, then expire.
• Requires a two-thirds vote in both the House and Senate before the bill can become law, per the Georgia Constitution.
• Requires approval by Dahlonega voters in a November 2026 referendum, with automatic repeal of the whole Act if voters reject it or no election is held.

Homeowners who claim a primary residence (homestead property) within the special tax district covering Lumpkin County and the City of Dahlonega, the city's tax officials who process exemption applications, the city's election superintendent who must run the referendum, and shoppers who would pay the new 1 percent sales tax funding the exemption.

If approved by voters, eligible Dahlonega homeowners would see part of their home's value shielded from city property taxes each year, with the exact savings tied to how much the new sales tax collects. The city would shift some of its tax burden from homeowners toward shoppers paying the new sales tax.

• Section 1 defines key terms, including 'homestead property' and 'LHOST', and grants the exemption in an amount tied annually to net proceeds from the new sales tax within the special district.
• Section 1(c) and (d) set application rules: homeowners apply once with the local tax official, and the exemption renews automatically each year without a new application.
• Section 1(e) clarifies the exemption applies only to city taxes, only within the special district, stacks on top of other homestead 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 for the bill to become law, as required by the Georgia Constitution.
• Section 4 requires a referendum on the Tuesday after the first Monday in November 2026, with the exemption taking effect January 1, 2027 if approved, or automatic repeal 365 days after the election if rejected.
• Section 4(c) lets any Lumpkin County elector seek a court order (writ of mandamus) forcing the election superintendent to hold the required election if it is not called.
• Section 5 sets the Act's general effective date as upon the Governor's approval or its becoming law without signature, aside from the referendum provisions.

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)

• Will Wade (R, HD-009)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
• Dahlonega
• Lumpkin County
• local sales tax