HB1101: HB1101 Ad valorem tax; state-wide homestead tax exemption for a portion of the value of the homestead for certain senior residents; provide

Georgia law currently allows various local homestead exemptions, but no single statewide exemption specifically for older homeowners. This bill would add a new section to Georgia's tax code (O.C.G.A. § 48-5-44.3) granting any resident 60 or older an exemption of $500,000 of the assessed value of their homestead from most ad valorem (property) taxes, covering state, county, city, and school district levies but not taxes used to pay off bonds. The exemption would not automatically transfer to a new owner, except that a surviving spouse who keeps living in the home could keep receiving it. People would generally need to apply through their local tax office, though those already approved for a 2025 homestead exemption on the same home would be enrolled automatically for 2026. Because this changes tax exemptions, the Georgia Constitution requires a two-thirds vote in both chambers and statewide voter approval in a November 2026 referendum; if voters reject it or no election is held, the whole act repeals automatically on the following January 1.

• Creates a new statewide property tax exemption (O.C.G.A. § 48-5-44.3) of $500,000 of assessed home value for residents age 60 or older.
• Excludes bond-repayment taxes from the exemption, meaning it applies to general county, city, school, and state property tax levies but not debt service millage.
• Allows a surviving spouse to keep the exemption as long as they continue living in the home, but otherwise blocks the exemption from transferring to a new owner.
• Requires an application through the local tax receiver or tax commissioner, with automatic enrollment for people who already had a 2025 homestead exemption on the same property.
• Requires the exemption to stack with other homestead exemptions unless another exemption limits taxes based on rising assessed value, in which case only the larger exemption applies.
• Conditions the whole law on a two-thirds legislative vote and a statewide referendum in November 2026, with automatic repeal if voters reject it.

Georgia homeowners age 60 and older, their surviving spouses, county and municipal tax offices and tax commissioners who process applications, local school districts and governments that rely on property tax revenue, and Georgia voters, who would decide the measure in a 2026 referendum.

If approved by voters, many older Georgia homeowners would see a large cut in their property tax bills starting with the 2027 tax year, since $500,000 of home value would no longer be taxed. Local governments and school districts that depend on property tax revenue would collect less from qualifying homeowners.

• Section 1 adds O.C.G.A. § 48-5-44.3, defining 'ad valorem taxes' to exclude bond repayment levies and defining 'homestead' by reference to existing law (O.C.G.A. § 48-5-40).
• Subsection (b) sets the exemption amount at $500,000 of assessed value for residents 60 or older as of January 1 of the application year.
• Subsection (c) lets a surviving spouse keep the exemption as long as they continue occupying the home.
• Subsection (d) sets application requirements but automatically grants the exemption for 2026 to those already approved for a 2025 homestead exemption on the same property.
• Subsection (f) prevents the new exemption from stacking with certain value-freeze type exemptions, requiring tax officials to apply whichever exemption benefits the taxpayer more.
• Subsection (g) makes the exemption apply to tax years beginning on or after January 1, 2027.
• Section 2 requires a two-thirds vote in both the House and Senate under the Georgia Constitution's Article VII, Section II.
• Section 3 requires a statewide referendum by November 2026; approval brings Section 1 into effect January 1, 2027, while rejection or a failed election triggers automatic repeal of the act.

1. 2026-02-03House Second Readers (House)
2. 2026-02-02House First Readers (House)
3. 2026-01-29House Hopper (House)

• David Clark (R, HD-100)Primary sponsor
• Noelle Kahaian (R, HD-081)
• Emory Dunahoo (R, HD-031)
• Tim Fleming (R, HD-114)
• Matt Reeves (R, HD-099)

• property taxes
• homestead exemption
• senior citizens
• ad valorem tax
• 2026 referendum