SB 7: Webster County; 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

This bill applies only to Webster County. It would create a homestead exemption, a break on property taxes for a primary home, that shields homeowners in the county's special tax district from county ad valorem (property) taxes in an amount equal to the value generated each year by a new Local Homestead Option Sales Tax (LHOST), a 1 percent local sales tax dedicated to funding this exemption. The exemption would not replace other homestead exemptions homeowners already have; it would stack on top of them. It applies only to county-level property taxes, not school or other taxes, and only to property inside the special district, which covers the whole county. The sales tax would run from January 1, 2028 through December 31, 2037, and the exemption would apply through the end of 2039. Because this changes local taxation, the Georgia Constitution requires the bill to pass by a two-thirds vote in both chambers, and Webster County voters must approve it in a referendum set for November 2026. If voters reject it or the election is not held, the bill repeals itself a year later.

• Creates a new homestead exemption for Webster County property owners equal to the yearly value generated by a new 1 percent Local Homestead Option Sales Tax (LHOST) in the county's special tax district.
• Requires homeowners to apply once with the local tax official, after which the exemption renews automatically each year as long as they remain eligible.
• Limits the exemption to county property taxes only, not school or state taxes, and stacks it on top of any other homestead exemptions a homeowner already receives.
• Schedules the new sales tax to run from January 1, 2028 through December 31, 2037, and the exemption to apply through December 31, 2039.
• Requires a countywide referendum on the Tuesday after the first Monday in November 2026 before the exemption can take effect, and automatically repeals the Act if voters reject it or no election is held.

Homeowners who claim a primary residence (homestead) in Webster County, the Webster County tax commissioner's office, the county election superintendent who must run the referendum, and consumers in the county who would pay the new 1 percent local sales tax.

If approved by voters, Webster County homeowners would see part of their county property tax bill offset each year by revenue from a new sales tax, shifting some of the local tax burden from property owners to shoppers, including visitors and non-residents who buy goods in the county.

• Section 1 defines terms, grants the exemption based on the annual net proceeds of the LHOST collected in the special district, and sets it to run through December 31, 2039.
• Section 1(c) requires a one-time application for the exemption, with automatic renewal each year unless the homeowner becomes ineligible.
• Section 1(e) limits the exemption to county-purpose taxes on property inside the special district and makes it additional to other homestead exemptions.
• Section 1(f) sets the LHOST to be collected from January 1, 2028 through December 31, 2037.
• Section 3 requires a two-thirds majority vote in both the Senate and House because the bill affects local taxation under the Georgia Constitution.
• Section 4 schedules a Webster County referendum for November 2026, specifies the exact ballot language, and provides that the Act is automatically repealed one year after the election if voters reject it or no election occurs.
• Section 5 sets the Act's effective date as upon the Governor's approval, except for the referendum-dependent provisions in Section 4.

1. 2026-06-22Senate Tabled (Senate)
2. 2026-06-22Senate Reconsidered (Senate)
3. 2026-06-22Senate Notice to Reconsider (Senate)
4. 2026-06-22Senate Local Lost (Senate)
5. 2026-06-22Senate Committee Favorably Reported (Senate)
6. 2026-06-20Senate Read and Referred (Senate)
7. 2026-06-18Senate Hopper (Senate)

• Freddie Sims (D, SD-012)Primary sponsor

1. PassedSenate voteJune 22, 2026

   31 yea, 20 nay (1 not voting, 3 absent)

   Local Consent Calendar: Senate Vote #20

2. PassedSenate voteJune 22, 2026

   28 yea, 21 nay (3 not voting, 3 absent)

   Motion To Reconsider Local Consent Calendar: Senate Vote #21

• property taxes
• homestead exemption
• local sales tax
• Webster County
• referendum