---
title: 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
collection: bills
id: 2026-special/sb5
cite_as: SB 5, 2026 Special Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2026-special/sb5
md_url: https://georgiacommons.org/bills/2026-special/sb5.md
text_url: https://georgiacommons.org/bills/2026-special/sb5/text
source_url: https://www.legis.ga.gov/legislation/74856
date: 2026-06-23
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 884
omitted_url: https://georgiacommons.org/bills/2026-special/sb5.md?full=1
bill_number: SB 5
session: 2026 Special Session
session_slug: 2026-special
chamber: Senate
bill_type: bill
status_date: 2026-06-18
last_action: Senate Reconsidered Lost
sponsors:
  - Bo Hatchett
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/SB5/2026/X1
upstream_id: 2154256
summaries_model: claude-sonnet-5
topic_tags:
  - property taxes
  - homestead exemption
  - local sales tax
  - Toccoa
  - Stephens County referendum
---

# 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

## Text

Senate Bill 5EX
By: Senator Hatchett of the 50th
A BILL TO BE ENTITLED
AN ACT
To provide a homestead exemption from City of Toccoa ad valorem taxes in the amount of
the assessed value of the homestead property determined annually for the special district
based upon the proceeds of a new Local Homestead Option Sales Tax (LHOST) to be
imposed within the special district conterminous with Stephens County; to provide for
definitions; to specify the terms and conditions of the exemption and the procedures relating
thereto; to provide for applicability; to provide for compliance with constitutional
requirements and the provisions of Article 2C of Chapter 8 of Title 48 of the O.C.G.A.; to
provide for a referendum, effective dates, automatic repeal, mandatory execution of election,
and judicial remedies regarding failure to comply; to provide for related matters; to repeal
conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
(a) As used in this Act, the term:
(1) "Ad valorem taxes" means all ad valorem taxes imposed by the governing authority
of the city for all purposes.
(2) "City" means the City of Toccoa and its governing authority.
S. B. 5EX
(3) "Homestead property" shall have the same meaning as provided in Code
Section 48-8-109.50 of the O.C.G.A.
(4) "LHOST" means the special sales and use tax established under Article 2C of
Chapter 8 of Title 48 of the O.C.G.A.
(5) "Local tax official" means the tax official charged with the duty of receiving
applications for homestead exemptions for the city.
(6) "Special district" means the special district conterminous with Stephens County and
established by Code Section 48-8-109.51 of the O.C.G.A.
(b) 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 as is determined annually based upon the net proceeds of the sales and use tax
collected under Article 2C of Chapter 8 of Title 48 of the O.C.G.A. on such person's
homestead property located within the special district determined annually based upon the
net proceeds of the sales and use tax collected within the special district in accordance with
Code Section 48-8-109.57 of the O.C.G.A. for the special district based upon the net
proceeds of the LHOST collected within the special district. The value of such property in
excess of such exempted amount shall remain subject to taxation.
(c) A person shall not receive the homestead exemption granted by subsection (b) of this
section unless such person or person's agent files an application with the local tax official
giving such information relative to receiving such exemption as will enable the local tax
official to make a determination regarding the initial and continuing eligibility of such person
for such exemption; provided, however, that any person who previously applied for another
homestead exemption from ad valorem taxes imposed by the city, was allowed such
homestead exemption for the immediately preceding tax year, and remains eligible for such
homestead exemption for that same homestead property in the current tax year shall be
allowed the exemption granted under subsection (b) of this section for that homestead
S. B. 5EX
without the application otherwise required by this subsection. The local tax official shall
provide application forms for the purposes of this subsection.
(d) The exemption shall be claimed and returned as provided in Code Section 48-5-50.1 of
the O.C.G.A. Once granted to a person, the exemption shall be automatically renewed from
year to year without application so long as the person granted the homestead exemption
under subsection (b) of this section occupies such residence as a homestead and otherwise
remains eligible for such exemption. It shall be the duty of any person granted the
homestead exemption under subsection (b) of this section to notify the local tax official in
the event that such person for any reason becomes ineligible for such exemption.
(e) In accordance with the provisions of subsection (c) of Code Section 48-8-109.52 of the
O.C.G.A., the exemption granted by subsection (b) of this section:
(1) Shall not apply to or affect any ad valorem taxes other than those levied by the
governing authority of the local government to which this Act applies;
(2) Shall only apply to those portions of real property located within the special district;
(3) Shall be in addition to and not in lieu of any other homestead exemption applicable to
the homestead property; and
(4) The exemption granted by subsection (b) of this section shall apply to all taxable years
beginning on January 1 of the year subsequent to the approval of this Act in the referendum
provided for in Section 4 of this Act and ending on December 31, 2039.
SECTION 2.
This Act incorporates by reference the terms and conditions specified under Article 2C of
Chapter 8 of Title 48 of the O.C.G.A.
S. B. 5EX
SECTION 3.
In accordance with the requirements of Article VII, Section II, Paragraph II(a)(2) of the
Constitution of the State of Georgia, this Act shall not become law unless it receives the
requisite two-thirds' majority vote in both the Senate and the House of Representatives.
SECTION 4.
(a) The election superintendent of the city shall call and conduct an election as provided in
this section for the purpose of submitting this Act to the electors of the city residing within
the special district for approval or rejection. The election superintendent shall conduct that
election on the Tuesday following the first Monday in November, 2026, and shall issue the
call and conduct that election as provided by general law. The election superintendent shall
cause the date and purpose of the election to be published once a week for two weeks
immediately preceding the date thereof in the official organ of the city. The ballot shall have
written or printed thereon the words:
"( ) YES Shall the Act be approved which provides a homestead exemption from City
of Toccoa ad valorem taxes for municipal purposes in an amount of the
( ) NO assessed value of the homestead property as is determined annually using
the proceeds of a new 1 percent Local Homestead Option Sales Tax to be
imposed within the special district of Stephens County?"
(b) All persons desiring to vote for approval of the Act shall vote "Yes," and all persons
desiring to vote for rejection of the Act shall vote "No." If more than one-half of the votes
cast on such question are for approval of the Act, Section 1 of this Act shall become of full
force and effect on January 1, 2027. If the Act is not so approved, or if the election is not
conducted as provided in this section, Section 1 of this Act shall not become effective, and
this Act shall be automatically repealed on the 365th calendar day following the election date
provided for in this section. The expense of such election shall be borne by the city. It shall
be the election superintendent's duty to certify the result thereof to the Secretary of State.
S. B. 5EX
(c) The provisions of this section shall be mandatory upon the election superintendent and
are not intended as directory. If the election superintendent fails or refuses to comply with
this section, any elector of the city residing within the special district may apply for a writ
of mandamus to compel the election superintendent to perform his or her duties under this
section. If the court finds that the election superintendent has not complied with this section,
the court shall fashion appropriate relief requiring the election superintendent to call and
conduct such election on the date required by this section or on the next date authorized for
special elections provided for in Code Section 21-2-540 of the O.C.G.A.
SECTION 5.
Except as otherwise provided in Section 4 of this Act, this Act shall become effective upon
its approval by the Governor or upon its becoming law without such approval.
SECTION 6.
All laws and parts of laws in conflict with this Act are repealed.
S. B. 5EX

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

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.

### Plain-language summary

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 it 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.

## Status

- Status: Introduced (2026-06-18)
- Last action: Senate Reconsidered Lost (2026-06-23)
- Sponsors: Bo Hatchett
- Official page: https://www.legis.ga.gov/legislation/74856

> The history, votes, and amendments (884 characters) are at https://georgiacommons.org/bills/2026-special/sb5.md?full=1