Georgia CommonsSenate · Introduced · 2026 Special Session
SB 5: City of Toccoa; ad valorem taxes; homestead property determined annually for the special district based upon the proceeds of a new Local Homestead Option Sales Tax (LHOST); provide homestead exemption
Last action June 23, 2026 · Senate Reconsidered Lost
A local bill for Stephens County would give Toccoa homeowners a property tax exemption tied to a new 1 percent local sales tax, pending voter approval this November.
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 the General Assembly's website lists.
In plain language
This bill applies only to the City of Toccoa and the special tax district that covers all of Stephens County. It would exempt homeowners in that district from City of Toccoa property taxes (called ad valorem taxes) in an amount equal to their home's assessed value, calculated each year based on how much money a new Local Homestead Option Sales Tax (LHOST) brings in within the district. In effect, sales tax revenue would replace property tax collections on homesteads, up to the exempted amount. Homeowners would need to apply once with the local tax official, and the exemption would then renew automatically each year as long as they still qualify. The exemption would stack on top of any other homestead exemptions they already receive, but would not apply to county or school taxes, only city taxes. Because this changes Georgia's constitution, it needs a two-thirds vote in the General Assembly, then approval by Toccoa voters in a November 2026 referendum. If approved, it would run from January 1, 2027 through the end of 2039; if rejected, the whole Act repeals automatically.
What the bill does
- Creates a new homestead exemption from City of Toccoa property taxes equal to the assessed value of a homestead, funded by proceeds from a new 1 percent local sales tax (LHOST) collected in the Stephens County special district.
- Requires homeowners to file an application with the local tax official, but automatically carries over the exemption for people who already had a similar homestead exemption the prior year.
- Makes the exemption automatically renew each year without a new application, as long as the homeowner still lives there and remains eligible.
- Limits the exemption to only City of Toccoa taxes, only to property inside the special district, and stacks it on top of (not instead of) other existing homestead exemptions.
- Sets the exemption to run from January 1, 2027 through December 31, 2039, contingent on voter approval in a November 2026 referendum.
- Requires a two-thirds majority vote in both the Senate and House because it involves a constitutional tax provision, and automatically repeals the whole Act if voters reject it.
Who it affects
Homeowners who live in the City of Toccoa within the Stephens County special tax district, the Toccoa city government (which loses some property tax revenue but gains sales tax revenue), the local tax official who processes exemption applications, and the county election superintendent who must run the referendum.
Why it matters
If voters approve it, eligible Toccoa homeowners would see their city property tax bill reduced or eliminated on their primary residence, with the lost revenue offset instead by a new penny-per-dollar sales tax collected across Stephens County, shifting how city services get funded.
Key provisions
- Section 1 defines key terms and grants the exemption, tying its dollar amount each year to the net proceeds collected from the new LHOST sales tax in the special district.
- Section 1(c) requires an application to the local tax official but exempts people who already had a similar homestead exemption approved the prior year.
- Section 1(e) limits the exemption to City of Toccoa taxes only, restricts it to property within the special district, and makes it additional to other homestead exemptions, running from January 1 after voter approval through December 31, 2039.
- Section 3 requires a two-thirds majority vote in both the Georgia Senate and House of Representatives, as mandated by the state constitution.
- Section 4 schedules a referendum for the Tuesday after the first Monday in November 2026, sets the ballot language, and provides that the Act automatically repeals 365 days after the election if voters reject it or if no election is held.
- Section 4(c) lets any Stephens County elector within the district seek a court order (writ of mandamus) forcing the election superintendent to hold the vote if it is not called properly.
- Section 5 makes the rest of the Act effective upon the Governor's signature or its becoming law without signature, except for the referendum-dependent Section 1.
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”
“Shall be in addition to and not in lieu of any other homestead exemption applicable to the homestead property”
“this Act shall be automatically repealed on the 365th calendar day following the election date”
Discussed in meetings (3)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
Senate floor session, June 22, 2026 (legislative day 4)
From 0:37:03 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Committee Favorably Reported)
Summary by Georgia Commons: The clerk reported a favorable committee recommendation and later described SB 5 as providing a homestead exemption from City of Toccoa property taxes, with the amount determined annually. The measure was considered with four other local bills, without a separate presentation or questions about its provisions. The group received 31 yes votes and 20 no votes, which the chair announced was insufficient for passage. Afterward, one senator urged discussions before further local votes and argued against applying statewide disputes to local measures. The chair agreed that senators traditionally defer to members representing the affected districts. The Senate voted 28–21 to reconsider the failed calendar. The chair initially announced that motion had failed, then corrected the ruling because only a majority of the quorum was required. The majority leader then moved to table all five bills, and the Senate did so without objection.
Senate floor session, June 23, 2026 (legislative day 5)
From 1:33:33 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Taken from Table)
Summary by Georgia Commons: The clerk described a Toccoa homestead exemption funded by proceeds from a new local homestead option sales tax. The sponsor said the proposal would let residents vote on property-tax relief, not impose the tax directly. The sponsor said Stephens County had about 28,000 residents, roughly 80% owner-occupied homes and typical household earnings about $20,000 below the state average. Supporters argued that lawmakers should defer to local voters. One supporter said a homestead-focused tax suited homeowner-heavy communities, while a broader property-tax offset better suited places with many renters. Opponents argued that the proposal would shift costs to everyday purchases without helping renters. One opponent said more than one-third of Georgians rented and cited racial differences in homeownership. Another warned about school funding, limited retail activity and strained rural government services. A supporter said outside shoppers could help fund relief, citing Coweta County as an example. The sponsor acknowledged that the approach would not suit the entire state but urged members to let local residents decide. The bill received 32 votes in favor and 19 against, short of the required 38 votes.
Status timeline
- Senate Reconsidered Lost (Senate)
- Senate Taken from Table (Senate)
- Senate Tabled (Senate)
- Senate Reconsidered (Senate)
- Senate Notice to Reconsider (Senate)
- Senate Local Lost (Senate)
- Senate Committee Favorably Reported (Senate)
- Senate Read and Referred (Senate)
Show full history (9 actions)
- Senate Hopper (Senate)
Sponsors
- Bo Hatchett (R, SD-50)
Votes
- Senate voteJune 22, 2026
31 yea, 20 nay (1 not voting, 3 excused)
- Senate voteJune 22, 2026
28 yea, 21 nay (3 not voting, 3 excused)
- Senate voteJune 23, 2026
32 yea, 19 nay (1 not voting, 3 excused)
Topics
- property taxes
- homestead exemption
- local sales tax
- Toccoa
- Stephens County referendum