Georgia CommonsHB 81: Santa Claus, City of; ad valorem tax; provide homestead exemption
Last action June 23, 2026 · House Lost Reconsidered Bill/Resolution
House Bill 81 would give homeowners in the City of Santa Claus a property tax break funded by a new 1 percent local sales tax in Toombs County, pending voter approval in November 2026.
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 LegiScan holds.
In plain language
This bill sets up a homestead exemption, a break on property taxes for a primary home, for residents of the City of Santa Claus. The exemption amount would not be a fixed dollar figure but would be recalculated each year based on how much money comes in from a new Local Homestead Option Sales Tax (LHOST), a 1 percent local sales tax that would be collected in the special tax district covering Toombs 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 remain eligible. Because this changes property taxation, it needs a two-thirds vote in both the House and Senate, and it must also be approved by city voters in a November 2026 referendum. If approved, the exemption would apply from January 1, 2027 through the end of 2039, after which it would need to be renewed.
What the bill does
- Creates a homestead exemption for Santa Claus homeowners equal to the assessed value covered by new local sales tax proceeds, effectively reducing city property tax bills.
- Ties the exemption's size each year to the net proceeds collected from a new 1 percent Local Homestead Option Sales Tax within the Toombs County special tax district.
- Requires an initial application with the local tax official, after which the exemption renews automatically each year without a new application.
- Requires voter approval through a November 2026 referendum before the exemption can take effect, with automatic repeal if voters reject it or no election is held.
- Sets the exemption to run from January 1, 2027 through December 31, 2039, and stacks on top of any other homestead exemptions a homeowner already gets.
Who it affects
Homeowners in the City of Santa Claus who claim the property as their primary residence, the city government and its tax officials who administer the exemption and sales tax, and shoppers in Toombs County who would pay the new 1 percent sales tax funding the exemption.
Why it matters
If voters approve it, Santa Claus homeowners would see their city property tax bills reduced each year by an amount tied to sales tax collections rather than a fixed number, shifting some of the city's revenue base from property taxes toward sales taxes paid by anyone shopping in the county.
Key provisions
- Section 1 defines key terms and grants the exemption equal to the assessed value covered by net LHOST proceeds collected within the special district conterminous with Toombs County.
- Section 1(c) and (d) set application rules: a one-time application is required, with automatic annual renewal as long as the homeowner stays eligible.
- Section 1(e) clarifies the exemption applies only to city ad valorem taxes on real property in the special district, runs from 2027 through the end of 2039, and adds to rather than replaces other homestead exemptions.
- 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 November 2026 referendum in the city; if voters reject it or no valid election occurs, the Act is automatically repealed 365 days after the election date.
- Section 4(c) makes the election mandatory and allows a court to order a writ of mandamus if the election superintendent fails to hold the vote.
- Section 5 sets the general effective date as upon the Governor's approval, except for the referendum-dependent provisions in Section 4.
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.”
“Shall be in addition to and not in lieu of any other homestead exemption applicable to the homestead property”
Status timeline
- House Lost Reconsidered Bill/Resolution (House)
- House Reconsidered (House)
- House Third Reading Lost (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Leesa Hagan (R, HD-156)
Votes
- House voteJune 23, 2026
96 yea, 71 nay (8 not voting, 4 absent)
- House voteJune 23, 2026
97 yea, 72 nay (6 not voting, 4 absent)
- House voteJune 23, 2026
97 yea, 72 nay (6 not voting, 4 absent)
Topics
- property taxes
- homestead exemption
- local sales tax
- Santa Claus Georgia
- Toombs County