HB 87: West Point, City of; ad valorem tax; provide homestead exemption

This bill would give homeowners inside a special tax district covering Harris County a homestead exemption from City of West Point property taxes (ad valorem taxes). The exemption amount would not be fixed; instead it would be recalculated each year based on how much money a new Local Homestead Option Sales Tax (LHOST) brings in within that district. The more the sales tax raises, the bigger the property tax break homeowners get. The exemption would stack on top of any other homestead exemptions homeowners already qualify for, and would only affect city taxes, not county or school taxes. Because it involves a local tax change, Georgia's constitution requires a two-thirds vote in both the House and Senate, plus approval by voters in a November 2026 referendum. If voters approve, the exemption would start January 1, 2027 and run through the end of 2039. If voters reject it or no election happens, the bill would automatically repeal itself a year after the scheduled election.

• Creates a homestead exemption from West Point city property taxes for homeowners inside the special tax district covering Harris County.
• Ties the size of the exemption each year to how much money a new 1 percent local sales tax (LHOST) collects in that district, rather than a fixed dollar amount.
• Requires homeowners to apply once with the local tax official, after which the exemption automatically renews each year without a new application.
• Makes the exemption apply only to city taxes, only to property inside the special district, and stack on top of any other homestead exemptions.
• Requires a two-thirds vote in the General Assembly and voter approval in a November 2026 referendum before the exemption can take effect.
• 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 is held.

Homeowners with a homestead property inside the special tax district conterminous with Harris County who pay City of West Point property taxes, the city's tax officials who process exemption applications, and the city's election superintendent, who must organize the November 2026 referendum.

If approved, affected homeowners would see their city property tax bills shrink by an amount that shifts every year with local sales tax collections, effectively swapping some property tax burden for sales tax revenue. The change depends entirely on voters approving it at the ballot box.

• Section 1 defines key terms, including 'homestead property' and 'LHOST,' by cross-referencing existing state law (O.C.G.A. §§ 48-8-109.50 and 48-8-109.51).
• Section 1(b) grants the exemption in an amount recalculated annually based on net proceeds of the new local sales tax collected within the special district.
• Section 1(c) and (d) set application procedures, including automatic renewal for people already receiving a similar exemption without reapplying.
• Section 1(e) limits the exemption to city taxes only, to property within the special district, and makes clear it adds to rather than replaces other exemptions, running 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 requires a November 2026 referendum in West Point; if approved, the exemption starts January 1, 2027, and if rejected, the entire Act repeals itself 365 days after the election.
• Section 4(c) allows any voter in the district to seek a court order (writ of mandamus) forcing the election superintendent to hold the required election.

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

• Vance Smith (R, HD-138)Primary sponsor
• Carmen Rice (R, HD-139)

• property taxes
• homestead exemption
• local sales tax
• West Point
• Harris County referendum