HB 85: Reynolds, City of; ad valorem tax; provide homestead exemption

This bill applies only to the City of Reynolds in Taylor County. It would create a homestead exemption from all City of Reynolds property taxes (ad valorem taxes), tied to a special district covering the whole county. The exempted amount each year would equal whatever money the new Local Homestead Option Sales Tax (LHOST), a 1 percent sales tax dedicated to funding homestead exemptions, brings in from that district. Homeowners would generally not need to reapply if they already have a homestead exemption from the city and remain eligible. The exemption would stack on top of, not replace, other homestead exemptions. Because it involves a local sales tax swap, the bill needs a two-thirds vote in the General Assembly and then approval by Reynolds voters in a November 2026 referendum. If approved, it starts January 1, 2027 and runs through December 31, 2039; if rejected or the election isn't held, the bill automatically repeals about a year after the election date.

• Creates a homestead exemption from City of Reynolds property taxes equal to the assessed value covered by proceeds from a new 1 percent local sales tax within the Taylor County special district.
• Requires most current homestead-exempt homeowners to be automatically enrolled without a new application, as long as they stay eligible.
• Makes the exemption additional to, not a replacement for, any other homestead exemption a homeowner already receives.
• Requires a countywide referendum in November 2026 before the exemption can take effect, plus a two-thirds vote in the legislature.
• Sets the exemption to run from January 1, 2027 through December 31, 2039, and automatically repeals the whole Act if voters reject it or no election happens.

Homeowners in the City of Reynolds who claim a homestead exemption, the Reynolds city government and its tax collection office, the Taylor County election superintendent who must run the referendum, and shoppers in Taylor County who would pay the new 1 percent sales tax.

If voters approve it, Reynolds homeowners would see part of their city property tax bill offset by revenue from a new countywide sales tax, shifting some of the city's tax burden from property owners to anyone making purchases in Taylor County, including non-residents.

• Section 1 defines key terms, including 'homestead property' and 'special district,' and grants the exemption based on annual LHOST sales tax proceeds collected in the Taylor County special district.
• Section 1(c) and (d) set application rules, letting people with an existing city homestead exemption keep it automatically without reapplying.
• Section 1(e) clarifies the exemption applies only to city taxes on real property in the special district, stacks with other 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, per the Georgia Constitution.
• Section 4 schedules a referendum for the November 2026 general election, sets the ballot question wording, and states the Act is automatically repealed 365 days after the election if voters reject it or no election occurs.
• Section 5 sets the general effective date as upon the Governor's approval, except for the referendum-dependent provisions in Section 1.

1. 2026-06-23House Second Readers (House)
2. 2026-06-22House First Readers (House)
3. 2026-06-20House Hopper (House)

• Patty Stinson (D, HD-150)Primary sponsor

• property taxes
• homestead exemption
• local sales tax
• Reynolds Georgia
• Taylor County