HB 9: Madison County; ad valorem tax; provide homestead exemption

This bill is a local law that applies only to Madison County. It would create a homestead exemption, a break on property taxes for a primary home, that offsets Madison County's property taxes by an amount tied to money raised through a new Local Homestead Option Sales Tax (LHOST), a 1 percent local sales tax. The exemption would apply only to county government taxes, not school or other local taxes, and only to homes inside the special tax district covering the whole county. Homeowners would need to apply once with the county tax official, after which the exemption renews automatically as long as they remain eligible. The sales tax would run from January 1, 2028 through December 31, 2037, and the exemption would apply from the year after voter approval through December 31, 2039. Because this changes local taxation, it needs a two-thirds vote in the General Assembly and must then be approved by Madison County voters in a November 2026 referendum before taking effect.

• Creates a new homestead exemption that reduces Madison County property taxes by an amount tied to revenue from a new 1 percent local sales tax (LHOST).
• Requires homeowners to apply once with the local tax official, after which the exemption automatically renews each year if they remain eligible.
• Limits the exemption to county government taxes only, applying only within the special tax district that covers all of Madison County.
• Sets the LHOST collection period from January 1, 2028 through December 31, 2037, and the exemption period through December 31, 2039.
• Requires a countywide referendum in November 2026, and automatically repeals the law if voters reject it or the election isn't held as required.
• Requires a two-thirds vote in both the House and Senate before the bill can become law, per the Georgia Constitution.

Homeowners in Madison County who qualify for a homestead exemption, the Madison County tax commissioner's office, the county election superintendent who must run the referendum, and shoppers in the county who would pay the new 1 percent sales tax.

If approved by both the legislature and county voters, Madison County homeowners would see part of their property tax bill offset by sales tax revenue instead, shifting some of the local tax burden from property owners to anyone making purchases in the county, including visitors and renters.

• Section 1 defines key terms and grants the exemption, tying its dollar amount each year to net proceeds from the new LHOST collected in the special district.
• Section 1(c) and (d) set the application process, letting anyone who already has a qualifying homestead exemption skip reapplying, with automatic annual renewal.
• Section 1(e) clarifies the exemption applies only to county taxes, only within the special district, stacks on top of other homestead exemptions, and runs through December 31, 2039.
• Section 1(f) sets the LHOST sales tax collection window as January 1, 2028 through December 31, 2037.
• Section 3 requires a two-thirds majority vote in both chambers of the General Assembly for the bill to become law.
• Section 4 requires a Madison County referendum on the Tuesday after the first Monday in November 2026, with the exemption taking effect January 1, 2027 only if a majority vote yes.
• Section 4(b) automatically repeals the entire Act 365 days after the election if voters reject it or if the election isn't properly held.
• Section 4(c) allows any Madison County voter to seek a court order (writ of mandamus) forcing the election superintendent to hold the required election.

1. 2026-06-22House Lost Reconsidered Bill/Resolution (House)
2. 2026-06-22House Reconsidered (House)
3. 2026-06-20House Notice to Reconsider (House)
4. 2026-06-20House Third Reading Lost (House)
5. 2026-06-20House Third Readers (House)
6. 2026-06-20House Committee Favorably Reported (House)
7. 2026-06-18House Second Readers (House)
8. 2026-06-17House First Readers (House)

• Rob Leverett (R, HD-123)Primary sponsor
• Alan Powell (R, HD-033)

1. PassedHouse voteJune 20, 2026

   95 yea, 67 nay (5 not voting, 12 absent)

   Local Calendar : House Vote #5

2. PassedHouse voteJune 22, 2026

   97 yea, 75 nay (1 not voting, 6 absent)

   Local Calendar: House Vote #9

3. PassedHouse voteJune 22, 2026

   99 yea, 74 nay (1 not voting, 5 absent)

   Local Calendar : House Vote #10

• property taxes
• homestead exemption
• Madison County
• local sales tax
• county referendum