HB 80: Fayette County; ad valorem tax; provide homestead exemption

Fayette County homeowners currently pay county property taxes without this exemption. This bill would create a homestead exemption (a break on property taxes for a primary home) equal to the full assessed value of the home, funded by money raised through a new Local Homestead Option Sales Tax (LHOST) inside a special district covering the whole county. The sales tax would run from January 1, 2028 through December 31, 2037, and the exemption would apply from the year after voters approve it through December 31, 2039. Homeowners who already have another homestead exemption and remain eligible would not need to reapply. The exemption applies only to county ad valorem taxes (property taxes), not to school or other local taxes, and stacks on top of existing exemptions rather than replacing them. Voters must approve the plan in a November 2026 referendum; if they reject it or the election does not happen, the law repeals itself automatically one year after the election date.

• Creates a new homestead exemption from Fayette County property taxes equal to the assessed value of a homeowner's primary residence, funded by a new local sales tax.
• Requires voters in the special tax district covering Fayette County to approve the plan in a November 2026 referendum before it can take effect.
• Sets the new 1 percent Local Homestead Option Sales Tax (LHOST) to run from January 1, 2028 through December 31, 2037.
• Automatically repeals the entire Act 365 days after the referendum if voters reject it or the election is not held.
• Requires homeowners to apply for the exemption but allows automatic renewal each year without reapplying, as long as they stay eligible.
• Limits the exemption so it only affects county property taxes, only covers property inside the special district, and adds to rather than replaces other existing homestead exemptions.

Homeowners in Fayette County who claim the exemption on their primary residence, the Fayette County tax commissioner's office that processes applications, county voters who must approve the measure, and the county election superintendent who must run the referendum.

If approved by voters, homeowners in Fayette County's special tax district would see a reduction in their county property tax bill, offset by a new 1 percent sales tax collected countywide from 2028 through 2037. The exemption would last through 2039 unless voters reject the plan.

• Section 1 defines key terms, including 'homestead property' and 'LHOST,' and grants the exemption equal to the assessed value of homestead property based on annual LHOST proceeds.
• Section 1(c) and (d) set application rules, letting current homestead exemption holders skip reapplying and requiring automatic annual renewal unless a homeowner becomes ineligible.
• Section 1(e) limits the exemption to county-levied taxes, property within the special district, and years from the first January 1 after voter approval through December 31, 2039.
• Section 1(f) sets the LHOST sales tax period from January 1, 2028 to December 31, 2037.
• Section 3 requires a two-thirds majority vote in both the House and Senate for the bill to become law, per the Georgia Constitution.
• Section 4 schedules a countywide referendum for November 2026, specifies the exact ballot language, and makes Section 1 effective January 1, 2027 only if voters approve it.
• Section 4(b) provides for automatic repeal of the Act 365 days after the election if voters reject it or no election is held.
• Section 4(c) allows any Fayette County voter to seek a court order (writ of mandamus) forcing the election superintendent to hold the referendum if they fail to do so.

1. 2026-06-23House Lost Reconsidered Bill/Resolution (House)
2. 2026-06-23House Reconsidered (House)
3. 2026-06-23House Third Reading Lost (House)
4. 2026-06-23House Third Readers (House)
5. 2026-06-23House Committee Favorably Reported (House)
6. 2026-06-22House Second Readers (House)
7. 2026-06-20House First Readers (House)
8. 2026-06-18House Hopper (House)

• Josh Bonner (R, HD-073)Primary sponsor
• Karen Mathiak (R, HD-082)
• Debra Bazemore (D, HD-069)
• Derrick Jackson (D, HD-068)

1. PassedHouse voteJune 23, 2026

   96 yea, 71 nay (8 not voting, 4 absent)

   Local Calendar : House Vote #13

2. PassedHouse voteJune 23, 2026

   97 yea, 72 nay (6 not voting, 4 absent)

   Local Calendar: House Vote #14

3. PassedHouse voteJune 23, 2026

   97 yea, 72 nay (6 not voting, 4 absent)

   Local Calendar : House Vote #15

• property taxes
• homestead exemption
• Fayette County
• local sales tax
• referendum