HB 86: Donalsonville, City of; ad valorem tax; provide homestead exemption

This bill creates a homestead exemption from City of Donalsonville property taxes (ad valorem taxes) for homeowners within a special tax district that covers all of Seminole County. Instead of a fixed dollar exemption, the amount would be recalculated each year based on how much money comes in from a new 1 percent Local Homestead Option Sales Tax (LHOST) collected in that district. The exemption would stack on top of any other homestead exemptions a homeowner already gets, but it only applies to city property taxes, not county or school taxes. Homeowners who already have a homestead exemption would not need to reapply; new applicants would file with the local tax official. The bill requires a statewide two thirds legislative vote and a local referendum on the November 2026 ballot before it can take effect. If voters approve, the exemption starts January 1, 2027 and runs through December 31, 2039; if voters reject it or the election is not held, the whole Act repeals itself automatically 365 days after the election date.

• Creates a new homestead exemption from City of Donalsonville property taxes equal to the assessed value covered by proceeds of a new local sales tax within the Seminole County special district.
• Requires people applying for the exemption to file paperwork with the local tax official, but automatically renews the exemption for those already receiving another homestead exemption for the same property.
• Limits the exemption so it only reduces city taxes, only applies to property inside the special district, and stacks on top of other homestead exemptions rather than replacing them.
• Sets the exemption to run from January 1 of the year after voter approval through December 31, 2039, after which it would expire.
• Requires a November 2026 local referendum and a two thirds vote in the General Assembly before the exemption can become law.
• Automatically repeals the entire Act 365 days after the election if voters reject it or if the election is not held as required.

Homeowners within the City of Donalsonville and the Seminole County special tax district, local tax officials who process exemption applications, the city government that collects the affected property taxes, and voters in the city who will decide the referendum in November 2026.

If approved, city property tax bills for homeowners in the district would drop by an amount tied to new local sales tax collections, shifting some of the city's tax burden from property owners to sales tax payers. The exemption would last only through 2039 unless renewed, and depends entirely on voters approving both the sales tax and this exemption.

• Section 1 defines key terms, including 'homestead property' and 'LHOST,' and grants the exemption based on the net proceeds of the new local sales tax collected within the special district.
• Section 1(c) and (d) set application and renewal procedures, exempting those already receiving another homestead exemption on the same property from reapplying.
• Section 1(e) limits the exemption to city taxes only, restricts it to property within the special district, makes it additional to other exemptions, and sets it to run from the year after approval through December 31, 2039.
• Section 3 requires a two thirds majority vote in both the House and Senate under the Georgia Constitution before the Act can become law.
• Section 4 requires a November 2026 referendum in the city, specifies the ballot language, and provides that the Act takes effect January 1, 2027 if approved.
• Section 4(b) provides that the Act automatically repeals 365 days after the election if voters reject it or if the election is not properly held.
• Section 4(c) allows any elector to seek a court order (writ of mandamus) forcing the election superintendent to hold the required election if they fail to do so.

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

• Gerald Greene (R, HD-154)Primary sponsor

• property taxes
• homestead exemption
• Donalsonville
• Seminole County
• local sales tax