Georgia CommonsHouse · Failed · 2026 Special Session
HB 65: Dahlonega, City of; ad valorem tax; provide homestead exemption
Last action June 22, 2026 · House Lost Reconsidered Bill/Resolution
House Bill 65 would let Dahlonega homeowners in Lumpkin County vote on a new homestead exemption from city property taxes, funded by a new 1 percent local sales tax through 2039.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Introduced version, the latest the General Assembly's website lists.
In plain language
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.
What the bill does
- 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.
Who it affects
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.
Why it matters
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.
Key provisions
- 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.
From the bill
“Each resident of the special district is granted an exemption from all ad valorem taxes imposed by the city for all purposes in the amount of the assessed value of such homestead property as is determined annually based upon the net proceeds of the sales and use tax collected under Article 2C of Chapter 8 of Title 48 of the O.C.G.A.”
“If the Act is not so approved, or if the election is not conducted as provided in this section, Section 1 of this Act shall not become effective, and this Act shall be automatically repealed on the 365th calendar day following the election date”
Discussed in meetings (3)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House floor session, June 20, 2026 (legislative day 3)
From 1:06:27 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, Special Session, p. 112
Summary by Georgia Commons: The clerk reported a favorable committee recommendation and included the Dahlonega measure in the local homestead-exemption package. Supporters said local voters could choose a sales tax to reduce property taxes; opponents said higher sales taxes would raise everyday costs. The package failed, 95 to 67, short of two-thirds. The majority leader gave notice of reconsideration.
House floor session, June 22, 2026 (legislative day 4)
From 1:24:04 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, Special Session, p. 153
Summary by Georgia Commons: The clerk listed HB 65 for Dahlonega on the reconsidered 66-bill homestead-exemption calendar. The House had approved reconsideration 97-75. During the group vote, one member argued the measures were not a tax increase and said non-Georgians pay 17.2% of sales taxes. A second member opposed new taxes during an affordability crisis. The majority whip said local voters should decide. The calendar failed 99-74, short of the required two-thirds vote. The chair said no further reconsideration was allowed.
Status timeline
- House Lost Reconsidered Bill/Resolution (House)
- House Reconsidered (House)
- House Notice to Reconsider (House)
- House Third Reading Lost (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
- House Second Readers (House)
- House First Readers (House)
Show full history (9 actions)
- House Hopper (House)
Sponsors
- Will Wade (R, HD-9)
Votes
- House voteJune 20, 2026
95 yea, 67 nay (5 not voting, 12 excused)
- House voteJune 22, 2026
97 yea, 75 nay (1 not voting, 6 excused)
- House voteJune 22, 2026
99 yea, 74 nay (1 not voting, 5 excused)
Topics
- property taxes
- homestead exemption
- Dahlonega
- Lumpkin County
- local sales tax